ISI is first piece of Argyle Security
SAN ANTONIO--Argyle Security Acquisition Corporation, a public special-purpose acquisition company, announced in December the purchase of ISI Detention Contracting Group, which does business as ISI Security Group and performs electronic security integration in the commercial and detention markets. ISI will continue as a wholly owned subsidiary of Argyle, and ISI stockholders will receive $16.3 million and 1.18 million shares of Argyle Security. Argyle will also assume $6 million in ISI debt. The total deal represents roughly $30 million.
For the nine-month period ending Sept. 30, 2006, ISI generated $41.2 million in revenue and $4.1 million EBITDA.
Following stockholder approval, Bob Marbut will continue as chairman and co-chief executive officer of Argyle, Ron Chaimovski will continue as vice-chairman and co-chief executive officer of Argyle, and Sam Youngblood will continue as chief executive officer of ISI. All other key executives at ISI will remain, as well.
"This we hope will be the first of several strategic transactions," said Marbut.
Youngblood said ISI started out in corrections, "keeping people in," and grew into commercial security with the 2000 acquisition of Metroplex Control Systems, based in Dallas. Now, ISI has offices in Denver, Houston, Austin, Dallas and San Antonio, with revenue coming equally from corrections and electronic security, along with about 15 to 18 percent of the business in fire alarm work.