ASG Continues Expansion with 2 Acquisitions
ASG Security announced two new acquisitions.
ASG Security, Beltsville, Md., announced two new acquisitions. The company acquired Alarm Detection Systems (ADS), a 33-year old traditional commercial and residential electronic security company with approximately 2,000 customers, representing $45,000 of RMR, based in Houma, La. In addition, ASG acquired approximately 500 customer accounts from Amsafe Security Systems based in Ft. Lauderdale, Fla., in an accounts-only transaction.
The acquisitions are in states where ASG already has a presence, and will allow the company to expand existing territories and gain customers in areas of the state where it hadn’t previously had a presence. The Davis Marketing Group represented both ADS and Amsafe Security Systems for the transactions.
ADS was owned and operated by Reuben Williams, who will be joining ASG along with approximately one dozen employees. “We’ve doubled the size of our Louisiana presence already as a result of an acquisition in November 2012, and since then we’ve been looking to fill out parts of that state,” Joe Nuccio, president and CEO of ASG Security, told SDM. “ADS has a tremendous customer base, low attrition, great employees and a long-standing reputation that fits into our strategy of continuing to build out each territory.”
Nuccio added that ADS opens up a new territory to ASG’s Louisiana presence, being about 45 minutes outside of New Orleans. The acquired company’s customer base is approximately 54 percent residential and 46 percent small business. The new Houma branch will report into ASG’s existing New Orleans’ operations.
The acquisition of Amsafe Security Systems gives ASG the opportunity to add more infrastructure and create more internal sales in the Florida market, Ralph Masino, CFO of ASG Security, told SDM. Amsafe Security Systems’ customer base is approximately 50/50 business and residential. The accounts will fold into ASG’s existing southern Florida operations. “This is a really nice tuck in for us to continue to develop internal sales and continue growth after our acquisition of National Alarm Systems Inc., in Ft. Lauderdale, Fla., in January of this year,” Nuccio said.
In addition to the acquisitions, ASG announced strong organic growth for the first quarter of 2014. “We have a very ambitious budget and really challenge our teams to achieve lofty numbers,” said Bob Ryan, senior vice president of sales and marketing. “We are right on top of our goals and these two acquisitions will just allow us to continue our growth.” ASG ended 2013 with $8.8 million of RMR, an increase of $900,000 of RMR over the year ending 2012.
Nuccio added that ASG expects to make further acquisitions through 2014, including looking for a new market where it doesn’t currently have a presence. “We have a very robust pipeline for 2014,”he said. “We are in the middle of discussions right now in several different areas around the country.”