Safeguard Security acquires Citadel Security
HOUSTON, Texas--In a move motivated by relationships, geographical proximity and margins, Safeguard Security Holdings acquired Citadel Security, the company announced Feb. 21. Safeguard, a provider of corporate and industrial security systems and personnel, bought the guarding firm with $1.7 million in annual revenues for an undisclosed amount. The purchase comes just eight months after Safeguard's acquisition of integrator and guard firm Systemsgroup.
Safeguard chief operating officer W. Brown Glenn said the Citadel buy is in line with a number of goals he has for the company. First, Citadel's customers, clustered in Arkansas and Texas, are within Safeguard's Sun Belt target market. Further, they are largely commercial-based, which is important as Safeguard continues to get away from the government market.
"The government doesn't care about quality," Glenn said. "We want to be a value-added proposition, and the government doesn't do value-added."
To that end, Safeguard has been building a company that can design and integrate a solution, and then provide the guards to run it.
Safeguard is currently looking at further companies to acquire "from Florida all the way to southern California," said Glenn, in an effort to become a $100 million company with margins at 19 to 20 percent and publicly traded on one of the major exchanges. Safeguard is currently traded on the over-the-counter market and Glenn said the company has filed a registration statement with the SEC and would like to soon get on the OTC Bulletin Board.
"We think corporate clients are best severed with an integrated security solution," Glenn said. "Guards are expensive; it doesn't matter whose balance sheet they are on." Thus, Safeguard is embracing IP video, video analytics and sensor technology, some of it created right in Dallas.