Monitronics to Purchase Pinnacle Accounts on Ongoing Basis
Pinnacle Security, Orem, Utah, formed an alliance with Monitronics via a sale of a portion of its existing account portfolio and an agreement for future account sales.
The goal of this agreement is to enable growth for both companies, with Pinnacle as the sales engine and Monitronics servicing the new accounts. The agreement to purchase some existing accounts has no residual service obligation, no holdback and no account guarantees. These are all built into a 33x net multiple.
“This strategic relationship with Pinnacle Security will be an asset to Monitronics, driving sales and revenue,” said Mike Haislip President & CEO of Monitronics Security. “Pinnacle will offer us additional high quality customer accounts and a strong, committed sales team that will provide both companies with opportunities to increase market share. We are excited to announce this news.”
Jared Chappell, president and founder of Pinnacle Security, said, “With this relationship, Pinnacle is increasing its operating flexibility and significantly lowering its debt load. At a time when competitors are taking on additional risk and increasing their debt, this improved capital position represents the best direction for Pinnacle and allows the company to pursue significant new growth opportunities. We are pleased to join arms with Monitronics, a top-notch, strong, and fast growing security company. This favorable transaction improves our already strong foundation and provides value and commitment to the communities we serve.”