Subscribe to RSS - AlarmForce

AlarmForce

Matlin back in home security, as a consultant

The fired AlarmForce CEO’s noncompete has expired and he plans to help AlarmForce competitors with marketing
 - 
07/23/2014

TORONTO—The yearlong noncompete of ousted AlarmForce CEO Joel Matlin is at an end and now he’s back in the home security business—as a marketing consultant.

Fired AlarmForce exec launches new business

Joel Matlin’s new marketing firm will cater to security companies, among others
 - 
12/04/2013

TORONTO—Joel Matlin, the recently ousted CEO and founder of AlarmForce Industries, launched his own marketing business this week to serve security companies and other clients.

Management shake-up at AlarmForce

 - 
Wednesday, July 24, 2013

Last year, AlarmForce Industries, a Toronto-based super-regional, announced that its board of directors was looking at selling the company. Now the board says the company won’t be sold but grown instead, and has “terminated” AlarmForce’s longtime President and CEO Joel Matlin.

Alarm Force announced in a news release Tuesday that it had “terminated the employment" of Matlin but said that he will “continue to serve as a director of the company.” Matlin holds a stake in the company of about 8 percent, according to news reports.

Company CFO Anthony Pizzonia is now interim president and CEO, the release said. A search is underway to find a permanent successor to Matlin.

Earlier this month, the company announced that its board had completed its strategic review begun last August and will now focus on growing the company.

Here’s more of what it had to say in a July 3 news release:
 

During the past eleven months, a special committee of the Board of Directors of the Company (the "Board") comprised of the independent directors of AlarmForce (the "Special Committee") explored and considered available opportunities for the Company, including a possible sale of the Company. The Special Committee has concluded that the strategic review process did not result in a transaction adequately reflecting the Company's value. As such, the Board has decided to conclude the formal process and dissolve the Special Committee. The Company will now move forward with a focus on the Company's growth.

AlarmForce provides security alarm monitoring, personal emergency response monitoring, video surveillance and related services to residential and commercial subscribers throughout Canada and in some locations in the United States. The company says it is a leading provider of two-way voice alarm systems in Canada.

 

Who will buy AlarmForce?

 - 
Tuesday, August 7, 2012

AlarmForce, a super-regional security company based in Toronto, announced that its board of directors is taking a look at selling the company. The company has hired Imperial Capital to help it with a possible sale.

The company's market cap value today is listed as $135m and its enterprise value is $119m.

I asked Richard Ginsburg, former CEO of Protection One who is now managing partner at G3 Capital Partners, what he thought about the sale of AlarmForce. He said he thought the company is well run and that CEO Joel Matlin "has done a fabulous job of identifying a segment of the market open to value-oriented products (like their new video offering) at prices that are at or lower in comparison to traditional systems with basic offerings."

Ginsburg also said he believes "a company like AlarmForce is in a great position to compete with the likes of industry leader ADT and the emerging cable and telecom companies because of [AlarmForce's] single-minded focus on enhanced services like two-way voice and now video services." He added that he believes "some of the traditional companies are in a weaker position to compete in comparison."

Ginsburg predicted the company will get "good interest"  and said Imperial Capital has "formed a great niche in the M&A sector so they are a good choice [to help out with a sale.]"

The last time I spoke to CEO Joel Matlin was back in the winter of 2010 when he was opening a fourth office in Minneapolis/St. Paul.It has offices in North Carolina (opened in 2005), Ohio (opened in January 2006)  and it opened an office in Georgia in 2007.

AlarmForce does security alarm monitoring, personal emergency response monitoring, video surveillance for resi and commercial customers. Something that’s unique about AlarmForce is that it manufactures and installs its own two-way voice home alarm systems. When I did that interview, AlarmForce had 103,000 accounts in Canada and the U.S., which Matlin told me was up from 56,700 accounts in 2006. Today the number of accounts is closer to 125,000.

“Canada is a tough country to do business in. It’s got a population the same as the state of the California, but it’s spread out over a country that’s much larger than the U.S.,” Matlin said. In addition to dense population centers that are easier to penetrate, “the perception of crime is stronger in the U.S. than it is in Canada.”

Wonder who some potential buyers might be? One possiblitiy, in my opinion would be Stanley, which expanded its resi business in Canada last summer with the purchase of Microtec Security Systems. It got 80,000 accounts and additional bi-lingual monitoring capability out of the deal.

Or I suppose AlarmForce could be a bolt-on for a telecom that’s getting into the security business. Rogers Communications maybe? Here’s a video from the summer of 2011 where we talk about Rogers Communications working (in secret!) with iControl to get into the security industry.  And here’s a story about the deal.

AlarmForce board of directors has formed a committee of independent directors to supervise the strategic review.