Security Networks scoops up Tri-State
WEST PALM BEACH, Fla.--Making good on its promise to exponentially grow its business, Security Networks acquired full-service installation company Tri-State Alarms in Broomhall, Pa., for $17 million in July.
Tri-State brings with it $475,000 of recurring monthly revenue and 14,000 residential accounts. The transaction also extends Security Networks' geographic reach in the Northeast. (See related story on page 43.)
Buoyed by its third significant acquisition in nine months, Security Networks' top executive Richard Perry said the company is on track to hit $2.5 million to $3 million in RMR over the next three to five years.
"This acquisition puts us almost one-third of the way there," said Perry, president and chief executive officer of Security Networks.
This purchase came on the heels of the April acquisition of Marlin Central Station in Orlando and the October 2004 acquisition of Pilot Home Technologies of Charlotte, N.C. All of Tri-State's accounts will be moved to Marlin's monitoring facilities.
Perry noted that the company had been eyeing a move northward for some time. "This gives us a platform in the Northeast, in Philly and New Jersey, an area that we are familiar with and excited about growing," Perry said.
Security Networks bought Tri-State at public auction conducted by Safe Financial, which had foreclosed on the company's loans.
Tri-States' 40 employees will not be affected by the deal and the company will continue to do business as Tri-State Alarms. Perry has retained Peter Rogers to serve as acting general manager through the transition period. Rogers is a consultant hired in March 2004 by the lender and equity investors to assist with operational improvements.
"I will continue to support Rich Perry both here and in Florida as he executes his strategic plan," Rogers said.
The acquisition will enable Tri-State to get its sales department, which was stopped when lenders intervened in 2003, fully operational again.
Additional acquisitions for Security Networks are a definite possibility, Rogers said.