Bay Alarm, ranked No. 13 on the SDM 100 with $7,781,772 in recurring monthly revenue (RMR) on Dec. 31, 2013, announced that it acquired SDA Security, a family-owned and operated alarm company in San Diego. SDA Security, Riverside, Calif., has provided security services to the San Diego and Inland Empire markets for more than 80 years. 

Founded in 1930 by Harold Eales, the company has done well under three generations of family leadership. Throughout the past eight decades, the Eales family has focused on building their business on the foundation of personal relationships and outstanding service.

With this purchase, Bay Alarm will expand its presence in the San Diego and Inland Empire markets. In addition to their suite of security products, Bay Alarm also offers 24/7 alarm system monitoring by their locally staffed employees.

This acquisition ensures that both Bay Alarm and SDA customers continue to receive the same great customer service they’ve come to know and expect, whether they reside in northern or southern California. Bay Alarm reported that it had nearly 120,000 customers at year-end 2013; this acquisition likely expands that number as the company gains from the acquisition. In 2010, the last time SDA Security reported to the SDM 100, the company reported having $404,000 in RMR.

“This was an easy transition,” said Lessing Gold, who along with Alan Pepper, both of whom are from the law firm of Mitchell Silberberg & Knupp, represented Bay Alarm. “We had two intelligent companies that handled it all very well,” said Gold, who is SDM’s contributing legal columnist.  “It is my opinion that it was an excellent acquisition for Bay to expand throughout California, and that this was a great opportunity for SDA, and they found an excellent buyer in Bay,” Gold opinioned.

Matt Westphal, co-president of Bay Alarm Company stated, in a press release: “Over 80 years of dedication to the security of the San Diego community, the Eales family has built a company that closely matches the customer and employee-focused culture of Bay Alarm Company. The Westphal family is excited to continue their mission while expanding Bay Alarm’s 30-year history in the San Diego marketplace and bringing new technologies and processes to the SDA customers.”

With its focus on business security products and services, SDA Security adds strength to the existing business and residential solutions offered by Bay Alarm. This merger of two complementary companies supports Bay Alarm’s commitment to ensuring that local communities are safe, protected and well educated.

“The security industry is advancing at a rapid rate,” Shandon Harbour, president of SDA Security, stated. “As we researched how we can best prepare ourselves to continue providing cutting-edge services and products, it became clear that joining the Bay Alarm family would ensure our customers have continued access to services they need. We know that Bay Alarm would be the right choice for future growth.”

Both Bay Alarm and SDA Security share a long-time business partnership with NetOne (formerly Security Network of America), a network of independently held alarm companies across the nation with a 25-year heritage in the commercial and home security field.  This shared partnership helped lay the foundation for this acquisition.

Bay Alarm and SDA stated they would prefer to keep the details of the acquisition private and out of the media; however, Gold told SDM, “SDA was paid a very fair price, and both sides were happy with the outcome.”