Select Security Acquires U.S. Customers of Canada-Based Alarm Force
Select Security, ranked No. 32 on the SDM 100, has entered into an agreement to purchase the United States subscribers from Toronto, Canada- based AlarmForce.
This addition, expected to close on or about June 23, 2017, will add approximately 28,000 customers to Select Security, bringing the total number of Select Security customers close to 60,000. The deal will also expand Select Security’s territory in Ohio, North Carolina, Florida, Georgia, Kentucky, Virginia, Minnesota, California, New York, Texas, Colorado and New Jersey.
Steve Firestone, president of Select Security, said this acquisition fits the company’s growth strategy. “Our strategy is to continue to grow the business through acquisition and organic growth,” Firestone said, “and this opportunity gave us the chance — in addition to expanding existing areas — to enter markets that have a high number of customers.” Firestone added that doing so will allow Select Security to build full-service branches, including salespeople, with the intent to grow those markets organically.
Firestone said AlarmForce, which reported a 10 percent decline in U.S. revenue in the first half of 2017, wanted to sell off its U.S. operation to better concentrate on its Canadian operation, and approached Select Security regarding an acquisition about 60 days ago. He added that serious conversations began about 30 days ago and that the deal was finalized yesterday, June 14. In AlarmForce’s financial report, the company stated that 70 percent of the company’s attrition was in the U.S., stating, “This reflects the change in focus away from the U.S. market as well as the change in cancellation practices related to last year’s restatement, lower advertising expenditures and a focus on higher quality subscribers in the Canadian market.”
Firestone said he anticipates adding 40 or more people to Select Security’s support organization to support the acquisition, adding, “those range from corporate level people to field management people. We would not have been able to do this and make it work if we weren’t confident in our existing organization and infrastructure to support this.” Firestone said the acquisition brings Select Security from 1.2 million to 2 million in RMR overnight.
“It has been a pleasure working with the leadership team at AlarmForce to close this deal, and I look forward to releasing more information on this acquisition and our integration plans in the near future,” said Select Security Founder and CEO Patrick Egan.