Security First sights Security Technical Systems
HENDERSON, Nev.--Security First International Holdings acquired Security Technical Systems, an Arlington, Wash.-based developer of a 360-degree motion tracking camera, for two million shares of common stock.
SFIH, a publicly listed company that is traded over the counter, was trading at $4.58 on August 9, thus valuing the deal at more than $9 million. Security Technical Systems will operate as a subsidiary of SFIH, which will provide sales and marketing assistance.
The holding company was founded in May, with the focus of acquiring early stage businesses in the homeland security sector, according to Rod McClain, chairman and chief executive officer of the firm.
McClain said his strategy is to target companies that were founded in response to the terrorist attacks of Sept. 11, 2001. After that time, a number of new firms entered the market and attracted first-round financing from eager investors. Many of these companies now cannot raise additional capital to sustain operations and are acquisition candidates, he said.
"They found me and it seemed like a reasonable exit strategy and a way to take my company to the next level," said Darren Brazier, founder and chief executive officer at Security Technical Systems. The company targets military, high-end commercial and residential users as its customers.
Brazier said he raised an undisclosed amount of financing from individual investors since the company was founded in 2000. However, he declined to disclose how much he brought into the company in total.
Security Technical Systems introduced its product more than one year ago. The company has inked distribution deals with companies in Florida, Texas and Oregon, as well as in Australia and Canada.
Surveillance products have been the forefront in the discussion of identifying and capturing criminals.