Stanley bags one of the larger remaining Sonitrol pieces

Not surprisingly, Stanley is continuing to gobble up the Sonitrol franchises that remain out there. It's part of the strategy and it makes sense. They liked the Sonitrol model enough to pay $275 million for it, so why not buy up the franchises, increase the economy of scale, etc.? The announcement today is that Stanley has purchased one of the larger remaining pieces (by my count there are now roughly 90 franchises left), scooping up (ha! scooping up! sorry, inside joke) Sonitrol Cascades, Sonitrol of South Oregon, Sonitrol of Spokane and Sonitrol of Yakima--collectively operating as Sonitrol Cascades--from Vyanet Capital Group, L.L.C. Here's the full release. No link available:
Naperville, IL – October 5, 2009 – Stanley Convergent Security Solutions, Inc. announces the purchase of four Sonitrol franchises: Sonitrol Cascades, Sonitrol of South Oregon, Sonitrol of Spokane and Sonitrol of Yakima collectively operating as Sonitrol Cascades from Vyanet Capital Group, L.L.C. Sonitrol of Cascades is one of the top ten Sonitrol franchises in the U.S., based on recurring revenue in 2008, and was reported as the 41st largest security company in the United States overall (based on Security Dealer Magazine’s “SDM 100” annual ranking). The sale includes mostly commercial accounts including education, local government, property management, banking, retail, restaurant and other customers being serviced throughout Oregon and Washington state. Terms of the sale were not disclosed.
Okay. I admit it. I quoted that whole paragraph because I think it's funny that Security Dealer is getting credit for doing SDM's SDM 100. Does anyone know what SDM stands for anymore? Two minutes of googling turned up Security Distributing & Marketing Magazine (I kept getting "Security Device Manager"). I had honestly forgot, if I ever actually knew. They, like ASIS, have done a good job of just going by the letters. Everyone knows SDM. But, apparently, they don't know what it stands for. Congrats to Security Dealer for getting a little credit, even if they did somewhat recently change their name to Security Dealer and Integrator. Anyway, didn't mean to steal Stanley's thunder.
“This transaction is a natural fit for us since our 2008 acquisition of Sonitrol Corporation for $275 million. The Sonitrol Cascades franchise acquisitions are a great opportunity for us to expand our operations in Washington and Oregon. We’re excited to be adding such a quality organization to Stanley CSS. Sonitrol Cascades has an accomplished group of customers throughout the Northwest,” stated Tony Byerly, President - North America, Stanley Convergent Security Solutions, Inc.
They love throwing that $275 million number around. I guess I would, too, if I bought something for $275 million. They don't tell you what they bought the four franchises for, though...
Stanley CSS will expand its direct coverage for Sonitrol products and services to include the Eugene & Medford, Oregon and Spokane & Yakima, Washington areas. Stanley CSS’ stated strategy is to mainstream advanced Sonitrol audio verification technology and services across North America through its corporate locations and franchise partners.
And I can attest to the fact that they haven't just bought Sonitrol and rested on their laurels and let Sonitrol bring in the cash. As ASIS they were showing off a pretty cool new panel that allows for both Sonitrol-based intrusion and two doors of access control. They're combining Sonitrol's capabilities with the old HSM customer care and reporting features and have a pretty powerful base on which to build. The coolest part of that they were talking about at ASIS is a tracking service for your technician, like you get with UPS or FedEx. I'm guessing end users would like constant updates of just when the guy coming to fix the security system will arrive. Now, if only they could license that capability to the cable company...