PasWord Protection acquires in its footprint
HAMILTON, Ontario—PasWord Protection Services, a full service security company, has acquired ISC Security, both based here. The deal adds 500 accounts, bringing PasWord’s total monitored account base to more than 9,000.
While the PasWord has completed some acquisitions in the past, its focus is on organic growth, Paul Lloyd, president and owner of PasWord Protection’s parent company, The PasWord Group, told Security Systems News. “If acquisitions come along, and if they’re strategic, then we’ll certainly take a look at them,” he said.
“Our real growth right now is in the video monitoring business,” he said. Schools and car lots are key applications for PasWord’s video monitoring business, he said.
PasWord specializes in intrusion alarms, video surveillance, card access and operates its own ULC listed monitoring center. The company does some wholesale monitoring, but it’s not a core focus for the company, according to Lloyd.
“Our market territory is pretty much limited to Hamilton, Niagara and Halton, and we don’t go too much further than that,” Lloyd said. The acquired account base fits in that footprint.
The acquisition was finalized in October 2015. Lloyd declined to release terms of the deal.
PasWord’s account base is 50 percent resi and 50 percent commercial, Lloyd said. However, the company derives 70 percent of its revenue from its commercial business.
“We’re heavy into fire alarm monitoring and we’re heavy into video guard response/video monitoring. These command higher revenues than [residential accounts],” he said.
ISC Security’s account base is 80 percent commercial, Lloyd said. “ISC was really focused on the commercial market, [specifically] the industrial side of things; the steel companies and the wineries,” he said.
“We’ve made an arrangement with the previous owner, John Steinbach, and he has come on in a consulting role,” Lloyd said. “He’s been in the business for 30 years, primarily in the industrial video and industrial card access business, so he’s got a lot of depth in terms of experience.”