Subscribe to RSS - GTCR

GTCR

Private equity firm to acquire GreatCall

 - 
Wednesday, June 7, 2017

GTCR, a private equity firm based here, today announced that it has entered a definitive agreement to acquire GreatCall Inc, a large provider of PERS and cellular devices to seniors.

GTCR has some roots in the security space: GTCR bought Protection 1 in 2010 for $828 million, then sold the company to Apollo Management Group in 2015.

GreatCall has more than 800,000 subscribers across its cellular phone and PERS device business. The company operates its main monitoring center in Carlsbad, Calif., with a secondary facility in Reno, Nev.

“Everything they do, I think we would characterize as PERS—they deliver it a bunch of different ways. Some of it is cell phone based and comes with a cellular service as well. Some of it is traditional mobile PERS, pendant based.” David Donnini, managing director for GTCR, told Security Systems News. “There’s access to an operator in everything they offer.”

“We focus on recurring revenue service businesses, by and large—whether they’re B2B, B2C. A lot of them are technology enabled. We do a fair bit of healthcare investing as well, [along with] some technology, media and telecom. This investment hits on a lot of what we do across our firm,” Donnini said.

It was GTCR’s experience with security alarm monitoring that led the firm to GreatCall, Donnini said.

“Our goal is to continue to work with the company to continue to grow it. They have a business plan around entering more [of] the commercial side of the industry as well, providing the service to health care insurers, health care facilities, operators and so forth who can benefit from it as well,” Donnini said. “In our model, M&A is always an opportunity as well. I think there’s strategic businesses in this space that we’ll hope to acquire.”

What stood out to GTCR about GreatCall? “I think the thing that leapt out to us about GreatCall is efficiency, some of the best performance metrics and return on investment—as well as growth—in the industry,” Donnini said.

GTCR has thought of the PERS space as an interesting area for investment opportunity over the past five to 10 years, according to Donnini.

“We are excited to partner with GTCR as we continue to provide seniors with exceptional services that provide peace of mind and extend independent living,” David Inns, GreatCall’s CEO, said in a prepared statement. “GTCR brings significant resources and experience in building industry-leading companies, and we believe they will be a valuable resource in the long-term expansion of our business.”

The transaction is expected to close in the third quarter of 2017. “The existing owners of GreatCall decided to sell a few months ago. So, the discussions have been ongoing for a couple of months now, we’ve been evaluating the company and working on a transaction which we agreed to [in early June],” Donnini said.

Jefferies LLC served as financial advisor and Kirkland & Ellis LLP served as legal advisor to GTCR. J.P. Morgan Securities LLC served as financial advisor and DLA Piper served as legal advisor to GreatCall.

PE firm wants to combine Protection 1 and ASG

Deal reportedly $2b, multiple would be higher than 50x
 - 
05/12/2015

NEW YORK—Apollo Global Management, a $163 billion private equity group, is in talks to acquire Protection 1 and ASG, with the goal of combining the two companies, a source close to the deal told Security Systems News.

Possible Protection 1 buyers: PE firm, telecom or cableco

Pro 1 is reportedly up for sale with a $1.5b price tag, and an analyst tells SSN having an 'asset of this quality' on the market is unusual
 - 
08/06/2014

YARMOUTH, Maine—Home security giant Protection 1 is up for sale for more than $1.5 billion, Reuters reported this week. Likely buyers could range from a top private equity firm to a telecom or cableco, an industry analyst told Security Systems News.

Protection 1 on the block?

 - 
Tuesday, August 5, 2014

Home security giant Protection 1 is up for sale for more than $1.5 billion, according to a Reuters news report this week.

GTCR, the private equity firm that bought Protection 1 in 2010 for $828 million has asked Morgan Stanley to help in the sales effort, the news service reported Aug. 4.

I’ve reached out to Romeoville, Illinois-based Protection 1 for comment on the report, which Reuters ascribed to unidentified sources.

Protection 1 is one of the largest full-service business and home security companies in the United States. As of the end of 2013, it had 1.5 million customers and $28 million in RMR, an increase of nearly 8 percent over the previous year, according to published reports. Revenues exceeded $429 million.

By contrast, home automation/home security company Vivint—which was acquired by The Blackstone Group in 2012 for more than $2 billion—ended 2013 with more than $42 million in RMR, an increase of 23 percent over the previous year. Provo, Utah-based Vivint, which has more than 800,000 customers, had in excess of $500 million in revenues in 2013, according to published information.

Stay posted. I'll be updating this story as I get more information.

 

Richard Ginsburg named CEO of Central Security Group

Former Protection 1 CEO will take CSG national
 - 
07/08/2014

TULSA, Okla.—Super-regional security company Central Security Group today named Richard Ginsburg as CEO. Ginsburg, who as CEO of Protection 1 grew it into one of the top three security companies in the country from 2001 to 2010, said he wants to grow CSG into a “significantly larger company.”

GTCR sells Six3 Systems

 - 
10/10/2013

CHICAGO—In an $820 million deal, private equity firm GTRC has sold Six3 Systems to CACI International, the companies announced Oct. 9.

Vivint exploring sale

CEO said $2 billion offer from Blackstone previously turned down
 - 
09/06/2012

PROVO, Utah—Vivint is considering a sale with final bids due later this month, according to a Reuters report. The report said the home automation/home security company could be valued at as much as $2 billion, and that among three private equity groups looking at the company is GTCR—owner of Protection 1, one of the nation’s largest security companies.

SSN’s top 10 stories of 2010

 - 
12/22/2010

YARMOUTH, Maine—As 2010 draws to a close the editors at Security Systems News take a look back and see what the most read stories of the year were. What was making the news? What were you most interested in knowing?
Below is a non-sequential, categorized rundown of the top 10 most read stories on our site from Jan. 1 to Dec. 11, followed by a linked top 10 list.

The numbers on the Protection One deal

 - 
06/17/2010

LAWRENCE, Kan., and CHICAGO—Equity firm GTCR announced today the acquisition of Protection One, the second-largest security alarm company in North America, now that ADT and Broadview have combined. Our lead story has the ins and outs of the whys and whos, including interviews with ProOne CEO Richard Ginsburg, Michael Barnes, John Mack, and principal of GTCR David A. Donnini.

Pages