Safeguard strengthens its footprint
SCOTTSDALE, Ariz.--For the second time in three months, Safeguard Security & Communications increased its hold on the security market here with its purchase of R&M Security in March.
The purchase--full financial details were not released--of the previously family-owned company added 900 accounts to Safeguard's portfolio and increased its penetration in a growing area of Phoenix."We do have some accounts in that area," said John Jennings, chief executive officer of Safeguard, "but we wanted to increase our market share in the east valley of Phoenix, which is one of the fastest growing parts of the area."
That area's growth is attributable to a barrage of new construction.
According to Jennings, R&M's owner, Robert Graziano, who had owned the company for 25 years, was ready to retire from the business and obtained a broker to promote the company to others.
The acquisition of R&M marks the second deal in a few months for Safeguard, which accounts for 14,000 accounts that are 80 percent residential. Its acquisition of Akal Security, which added 500 accounts to Safeguard, was finalized in December. Jennings said the company will look to expand on both sides of its business.
"I would like to bring the balance of the accounts up a bit to about 60 percent residential and 40 percent commercial."
Jennings said that the residential business continues to be a focus.
"Residential is a very good business and we are very good at it," he said.
Safeguard, which employs 270 and has five locations, will continue to focus on its current footprint in New Mexico and Arizona. Jennings said although growth is important, a controlled rate of it is a priority.
"Quantity growth can grow you right out of business," he said. "Those companies that don't take note of history will find themselves in that difficult space again."