Pilot steers away from security, Security Networks swoops in

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Wednesday, December 1, 2004

WEST PALM BEACH, Fla. - Pilot Home Technologies has purged its security accounts, choosing instead to focus on its satellite installation business.

The company, which counted approximately 3,000 of its accounts as security, was actively looking to sell its portfolio after changing its business focus and Security Networks, a full-service alarm provider here, proved to be the appropriate company to take over the business.

“We were looking for a company that brought some local flair,” said Michael Spohn, chief financial officer of North Carolina-based Pilot. “ Most of our customers are local and we wanted a company that had more of a regional reach.”

And Security Networks is a company focusing on the southeast sector of the United States also looking for additional acquisition opportunities.

“Our particular focus is on the southeast United States,” said Richard Perry, president of Security Networks. “This fits in with our footprint.”

Perry said the accounts reach throughout the three major markets in North Carolina and said this acquisition provides the company with a “starting point” to make a name for itself in this market.

Although the deal itself is small, it succeeds in assisting both companies.

“It helps with our plan,” Perry said, “which is to grow the business over the next three to five years in excess of $2 million a month in recurring revenue.”

Perry said that being able to meet this goal means the company will focus on strategic acquisitions and internal growth (see related story on page 39).

To be able to effectively oversee the accounts, Security Networks plans on opening a branch in the Charlotte area. Kurt Becker, who has 15 years of experience in the marketplace, has been hired as the general manager of that location, even though an office had not been chosen as of press time.

Perry said the new location, which will be the company’s second, may employ between six and 12 employees in the beginning, although those numbers are dependent on additional acquisitions the company may make. He also said he would typically expect the branch to generate 80 new accounts per month.