Safeguard Security, Stealth Monitoring enter into partnership
DALLAS—Safeguard Security, a provider of corporate, industrial and residential security solutions and proprietary monitoring based here, announced on Nov. 18 that its subsidiary, SYSTEMSgroup Security Technologies, had entered into a partnership with Dallas-based Stealth Monitoring to be its camera surveillance-systems integrator and IP video monitoring company. Safeguard also announced on Nov. 12 it would begin immediate construction on an advanced IP video monitoring center, into which Stealth will move its operations when the center opens Jan. 1, 2010.
Stealth will lease the space from Safeguard but will remain an independent company. “We have our own monitoring center right now, but our lease expires in January and we will be moving in to share the premises with them,” Stealth president Norm Charney said. “We are an independent company and we are looking to expand our business in several directions.”
According to Safeguard CEO R. Michael Lagow the relationship could change in time. “Once the relationship is more mature and our overall program is perfected, then our board may decide to acquire Stealth as a wholly owned business unit of Safeguard,” Lagow said in an email interview. However, for the time being Safeguard would “help [Stealth] market and grow [its] monitoring venue to many times larger than it currently is. With our partnership agreement, we should be able to bring a significant amount of business to Stealth.”
The construction of the new video monitoring facility—an 18,000-square-foot, secured command center rehabbed from Safeguard’s current center of operations—heralded a new era for Safeguard, claimed Lagow, and would allow dealers to reap more RMR with added services.
“IP video is the technology … We are going to offer armed patrol response in the Dallas area—nobody really has this complete in-house service,” Lagow said. “What’s unique about Stealth is that they’re doing the program where they’re monitoring the streaming video, but they’re using some algorithm-based technology that allows them to do what we’re calling pre-crime analytics surveillance. It’s very, very unique.”
Lagow said a dealer program for the Safeguard/Stealth video surveillance/armed response solution was in the works. “There is a dealer program already in existence with [Stealth]. We’re in talks with some of our customers, and we should have that all ironed out by January when we open the new center.”
Charney said the partnership was a natural fit and would add value for dealers and customers. “I’m very excited about this. I think there’s a lot of synergy between the two companies,” Charney said. “I think our businesses are positioned to grow dynamically, and I think the combination of our services is a win-win for our customers.”
Lagow said the partnership was part of Safeguard’s ongoing shift in focus—which includes the acquisition recently of a 41 percent stake in Internet-based background check company, Premier Background Search. “We’ve set our sights on a little bit different protocol … A lot of integration companies were really sucking wind last year because of the economy. We’re looking for subscription-based businesses, because they seem to thrive through it all,” Lagow said. “We’re putting our strength into what returns the most for our shareholders. Monitoring is that, background investigations is that, security staffing is that, patrol services is that. Your one-time sale for integration is not … We want Mr. Monthly Payment.”