Systems integrator Pavion (formerly Corbett Technology Solutions; CTSI) has acquired Short Circuit Electronics, based near Kansas City, Mo. The acquisition increases Pavion’s footprint in installation, repair, removal, on-site support and monitoring of on-premise and on-demand video security and surveillance equipment.
“This acquisition really expands and deepens our capabilities around video security,” Alan Rosenkoff, vice president of business development, communications and corporate marketing for Pavion, told SDM. “Short Circuit will bring over 40,000 customer locations that they serve across the U.S., Canada and Mexico.”
Established in 1988, Short Circuit’s portfolio of offerings include video surveillance and access control systems installation and service, along with equipment removal, refurbishment and repair.
“They do really well in the retail industry vertical. That’s an area that Pavion is historically strong. Their business will continue to grow and it helps us to grow in that space,” Rosenkoff said.
Short Circuit’s client base includes a variety of national brick and mortar retailers, from quick service restaurants (QSRs), service providers, among others. Short Circuit will be folded into Pavion’s security business unit, led by Jim Muncey, and continue going to market under its legacy brand. (Pavion also operates a fire business unit and an integration business unit.)
In an announcement, David Israel, co-founder and vice president of Short Circuit Electronics, said the synergy between his business and Pavion was clear from the beginning.
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“Pavion has a large security practice that’s well-aligned to our business and can provide additional security, fire, and integration services to our customers,” Israel said. “But it’s the company and customer culture that solidified the deal for us. Our core values are the same; both revolve around serving people first and foremost, which was important to us.”
No financial details of the transaction were disclosed, including the amount of recurring monthly revenue (RMR) that Pavion’s gains in the transaction.
“I can say that it definitely helps us to continue to expand our RMR growth objectives,” Rosenkoff said. “Quite a bit of their business is RMR, so this certainly helps us to continue to grow the recurring services business that is so important to our continued growth.”
This latest purchase marks the 11th acquisition for Pavion since partnering with Wind Point Partners in June 2020. Officially launched in October 2022, Pavion comprises 12 legacy brands across its three business units: CTSI, DavEd Fire Systems, Collaborative Technology Solutions, The Protection Bureau, Star Asset Security, iON247, AFA Protective Systems, Structure Works, Enterprise Security Solutions, Systems Electronics, Firecom and Short Circuit Electronics.
Pavion is a $500 million company, with its sights set on reaching $1 billion within two years or less.
“Our approach is a bit different from other private equity investment firms where we are continually investing and buying great companies to grow them, as opposed to some others that buy and cut to profitability,” Rosenkoff said. “What that means is these companies are going to continue to have the employees that have been serving their respective customers for so long. But now each customer base will also have the added benefit of the depth and capabilities, both from a technology perspective as well as a geo-diversity perspective.”
In the case of Short Circuit Electronics, its customers will have the ability to be supported across 22 countries and across the U.S. from Pavion’s more than 40 locations. And they also have the ability to have one organization support their security, fire/life-safety, A/V, IT infrastructure and communications infrastructure by one organization.
“We are seeing a lot of value and a lot of growth, but also a lot of customer engagement because they’re very interested in having one organization like us to support services across multiple technology pillars,” Rosenkoff added. “We think that’s a real value for the employees that we’re bringing on, because they are so critically important to us. And it’s also a real value for the existing customers.”
Barry Epstein of Vertex Capital was the sole advisor to Short Circuit on the transaction.