IR does it one more time
FORT LAUDERDALE, Fla.--One of the largest independent systems integrators in Florida is the latest company to become part of Ingersoll-Rand's growing security systems integration business.
Security One Systems joined Ingersoll-Rand's Security Technology Sector in early May, 15 years after Bob Newman and Jim Pasquarello started the company and built it into a $30-million per year business with 100 employees in six branches. The purchase price was not released.
The decision to sell Security One comes two years after Newman and Pasquarello took on chairman and vice chairman roles at the company, respectively. The two took a step back to focus on BlueBridge Systems, a software development company they spun off from Security One. The software enables systems integrators to manage sales and proposals to service calls and billing from a single system.
Even though Newman and Pasquarello removed themselves from the day-to-day operations of Security One, the decision to sell was not easy.
"It's my baby for 15 years," said Newman. "It's probably the toughest thing I've ever had to do."
For Ingersoll-Rand, traditionally known for its security locks and access control products, the deal represents an instant boon to its business. Not only did it scoop up a systems integrator with extensive coverage in Florida--Security One operates branches in Jacksonville, Fort Lauderdale, Miami, West Palm Peach, Tampa and Orlando--it also made a rare find.
"It was one of the largest remaining independent security systems integrators across the country," said John Mack, president and chief executive officer of USBX Advisory Services, which represented Security One in the deal. "There are only seven or eight of these guys left."
Ingersoll-Rand began buying systems integrators in 2002. Since then it has bought four companies in North America--Electronic Technologies Corp., Integrated Access Systems, FX Technologies and Security One Systems. The company now has 46 security installation locations in North America, plus another 20 in western Europe.
"The strategy is to serve customers in targeted vertical markets, such as schools, hospitals, universities and airports," said Jim Scott, president of Integrated Systems Solutions for Ingersoll-Rand Security Technologies. "We want to offer them a full-range of goods and services that they need in their facilities."
According to Mack, Security One began exploring its options in October. Company officials considered either bringing in a large private equity group, recapitalizing the business or a sale.
Ingersoll-Rand proved to be the most interested in Security One, said Mack. "They got an attractive price for their company," he said. "It's consistent with recent trends."
Scott said there was little overlap between Security One and Ingersoll-Rand's existing integration business. The only duplication is that each company ran offices in Orlando.
Going forward, Scott expects Ingersoll-Rand will not only look to acquisitions to build its business, but also organic growth. In five years, the company's security sector, which also includes the company's product manufacturing businesses, has nearly doubled its annual revenues to $2 billion.