Interface Security Systems LLC, one of the nation’s largest providers of electronic security solutions and integrated security systems announced yesterday that it has completed a transaction in which it purchased 100 percent of the stock of Loss Prevention Management Inc., of Albuquerque, N.M.

LPM is a leading managed network services and IP integration company, combining wide area network expertise with the integration of voice, data, video and physical security applications. LPM manages and monitors its own nationwide high-speed IP aggregation network that can deliver secure Internet Protocol (IP) applications such as credit authorization, video surveillance, point of sale aggregation, IP telephony and access control.

LPM is also a significant business in the IP video surveillance market and is currently established in several high-growth vertical markets, including the gaming and hospitality industry.

Interface, the 12th largest revenue company on the most recent SDM 100 report of largest U.S. security companies, provides installation, maintenance and monitoring services to both commercial and residential customers, as well as fully integrated intrusion, fire, managed access control and interactive video surveillance systems to a wide range of business customers.

“Our investment in LPM represents a ground breaking and first-to-market strategic combination that positions Interface as a front runner in the convergence of physical and logical security technologies that is redefining the role of system integrators in the commercial sector,” said Michael Shaw, chief executive officer of Interface.

“We see the business landscape changing, with the market for IP-based security and building control integration reaching $118 billion and still growing, while managed network services is projected to become a $41 billion business by 2009. Other security system integrators are scrambling to form strategic alliances with IP savvy companies in hopes of meeting changing customer demands; meanwhile our company is now uniquely positioned as a single-source IP integrator, capable of delivering a broad range of solutions in this rapidly expanding market,” he said.

The LPM nationwide IP Network will be integrated into Interface’s Secure Operations Center, creating a one-of-a-kind 24/7 security and data management facility that can deliver a secure broadband wide area network nationwide and manage a variety of security and business applications for both single and multi-location customers.

“We believe this is a defining move for Interface that will give us a strong competitive advantage in the marketplace,” Shaw said.

LPM’s Robert Aranda, CEO, shares Shaw’s excitement. “We’ve created an organization capable of integrating, managing and monitoring IP applications anywhere in North America,” he said. “Our private IP network allows us to exceed the service levels of our competitors who are still subject to the best efforts and security flaws of the public Internet. The merger with Interface produces the first national footprint IP-enabled security integrator, bringing VoIP, IP video and secure Internet data into the market as a single source provider. We believe our newly combined entity will be the ’benchmark’ for all security providers to follow, as we set the standard to transform the security and communication industry.”

Shaw and Aranda believe that the company will quickly become one of the largest IP video surveillance and security providers in the hospitality and gaming industry. LPM’s Cisco and Microsoft certified engineers combined with Interface’s Center of Excellence engineering resources will set the standard for enterprise-level video and access control solutions with a national delivery capability that will be unmatched in the market.

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