Security Systems News

AUG 2017

Security Systems News is a monthly business newspaper that reaches 25,100 security installers, product distributors, central stations, engineers & architects, and security consultants. Our editorial coverage focuses on breaking news in all major se

Issue link: http://ssn.epubxp.com/i/853381

Contents of this Issue

Navigation

Page 28 of 38

Head briefs MAC purchases Western Security Systems By Spencer Ives C A L H O U N , G a . — O w e n Security Solutions, a residen- tially focused company based here, received a $5 million senior revolving line of credit from Capital One, the finan- cial institution announced in late June. J u s t i n O w e n , c o m p a n y president, told Security Sys- tems News that this funding will help the company expand o rg a n i c a l l y a n d t h ro u g h acquisition. "This is going to allow us to have the ability to act quickly on an opportu- nity," he said. "We're excited about the potential out there." Owen noted that the credit facility is "really well-timed." The company has an acqui- s i t i o n c o m i n g u p t h a t i t wouldn't have been able to complete without this line of credit, he said. "Besides the acquisitions, we're also doing some aggres- sive, organic, internal RMR growth and we're going to use a little bit of that facility," Owen said. "We really want to diversify and balance out our portfolio with the commercial side of the business. So, we're doing some things with video and with access control and just focusing on the services aspect." Owen Security Solutions' account base is currently about 70 percent residential, Owen said, adding that his goal is to make the business 50 percent residential and 50 percent commercial. "Most of our acquisitions have been 80 percent residential. So, we want to stay diversified and build up the commercial side of our business from [organic growth]," he said. The company has more t h a n 5 , 0 0 0 a c c o u n t s a n d $178,000 in RMR. This is the first time Owen Security has received a line of credit like this, according to Owen. The company started talking with Capital One at the beginning of the year, he said. "We feel like we're in good hands with them and [we've] got good terms and good growth options," Owen said. Capital One also approved a $150,000 commercial card line for the company, which w i l l a l l o w t h e c o m p a n y to consolidate its various expenses and accounts, Owen said. "I think that's going to save us some administrative time," he said. "Capital One is pleased to work with Owen's experi- enced leadership to develop a financing solution that sup- ports their business plan and focus on sensible growth," J o h n R o b u c k , m a n a g i n g director of Capital One's secu- rity finance group, said in its announcement. "We look for- ward to working with them as they pursue future oppor- tunities." Owen Security completed three acquisitions through- out 2016. "Our team sur- prised me at the way that they rolled those new customers in. We've been able to keep the attrition relatively low," Owen said. Owen Security's footprint is in the Northwestern region of Georgia and the company doesn't have plans to grow outside of that within the next three years. "We've got a ton of room for growth in that area," he said. SSN Owen Security receives $5m line of credit Vivint announces new campus, new Smart Properties solution PROVO, Utah—Vivint made two announcements in June: on June 20, Vivint announced a new solution for property developers and managers— Vivint Smart Properties—and on June 13, the company announced a new facility. Vivint Smart Properties will bring smart home devices to single- or multi-family rental properties, marketed specifically toward property managers. Harrison Jenkins, senior director of product inte- grations, told Security Systems News that this program is essentially "taking what we've been offering to single- family residential homeowners for years and making it accessible to renters. So, [that includes] lights, locks, thermostats, doorbell cameras, security." The customer, property managers, looks a little different from the com- pany's typical customer, Jenkins noted. "It's just a different model for us, but I think we have a good understanding of how it needs to happen and we're ready to deploy it." Tom Few, Vivint Smart Home's vice president of business development, described how the new offering benefits both renters and property managers. "We believe that it'll help drive occu- pancy, it'll help drive net operating income with increased rents," Few told SSN. "I believe that it allows the renter to have control of their apartment, whether it be through video, door access, ther- mostats, lighting. These are all things that people are becoming accustomed to having and I think it's going to be an amenity that's going to attract more renters to that property." Vivint has dedicated staff that is focused on property managers, devel- opers and owners, according to Few. According to Vivint's announcement, the new facility will be a 43,000-square- foot building, capable of housing up to 400 employees and includes a demo home equipped with a Vivint smart home system, a full-size basketball court, fit- ness center and six training rooms, including a technical training room and a hands-on product training room. Apple to offer in-store smart-home demos C U P E RT I N O , C a l i f . — A p p l e h a s announced that it is offering in- store smart-home demos at select stores worldwide. The fully installed HomeKit systems have been rolled out in 46 Apple stores. The systems have been outfitted with smart devices including Phillips Hue lightbulbs, Hunter fans, and Nest thermostats, which customers can control using the store's test iPhones, iPads and Apple watches. By Spencer Ives ASPEN, Colo.—Mountain Acquisition Company, a hold- ing company based here, recent- ly announced the purchase of Western Security Systems, which is based in Steamboat Springs, Colo. Western Security Systems has 1,300 accounts and about $43,000 dollars in RMR, Chris Heath, Mountain Acquisition's CEO, told Security Systems News. This purchase brings MAC to more than $435,000 in RMR and nearly $12 million in annual revenue. The deal was finalized on May 4. "It fits so neatly into our geo- graphic footprint and the kind of customer base that we're used to. There are really no operat- ing surprises, there's really no tremendous difference in the customer base or the demo- graphics as compared to our other branches. So, it will be business as usual from a man- agement and operating stand- point," Heath said. Western Security's account base is about 60 percent resi- dential, according to Heath. "It's similar to the mix in the company overall," he said. "It fit our investment criteria nearly exactly. Having a market share leader, in our geographic foot, with single digit attrition— those are our primary criteria." The deal will consolidate MAC's presence among Colo- rado ski resort communities, Heath said, which has been a primary focus for the company since it acquired Apex Security, based here, in 2006. Tim Stanley, MAC partner, is relocating from the company's Denver office to Steamboat Springs to manage the business, Heath said. MAC currently plans to keep the Western Security System name and branding. "We've found out—[through] other acquisitions—that these brands in smaller markets do have real equity," said Heath. "Rather than jump in and rebrand, we are taking a very measured approach to evalu- ating that opportunity and so far, we've maintained the brand equity in all of the markets where we've made acquisi- tions." Other companies in MAC's portfolio include Apex Security, Integrated Systems, Eagle Secu- rity Systems and Superior Alarm & Electronics. MAC has offices here as well as in, Glenwood Springs, Silverthorne and Den- ver in Colorado and an office in northern California. SSN By Spencer Ives TULSA, Okla.—Central Security Group on July 6 announced that it received an incremental first lien term loan of $40 million, as well as a 12-month maturity extension to its credit facili- ties. The new funding "is part of a broader $350 million financing the company started in 2014. This was an add on to that financ- i n g , " R i c h a r d Ginsburg, presi- dent and CEO of Central Security Group, told Secu- rity Systems News in an email inter- view. CSG finances through Credit Suisse, Ginsburg noted. A s k e d a b o u t g ro w t h initiatives, Ginsburg said, "We continue to grow our business through our long- standing Authorized Dealer Program, supplemented by our organic efforts." In the recent announce- ment, Ginsburg mentioned that the funding will help the company with geograph- ic expansion, acquisitions and growing its account base. The announcement also emphasized the com- pany's Alert 360 offering, which provides interactive security. Concerning acquisitions, Ginsburg told SSN, "We are always looking but are very selective." G i n s b u rg d i s - cussed what CSG looks for in an i d e a l a c q u i s i - tion. "We would consider quality c o m p a n i e s w i t h customers put on through more traditional marketing," he told SSN. "We also look for compa- nies with good employees and managers who are hit- ting glass ceilings because of the company's size and who would benefit from a company like ours, with more resources, financing, and a positive culture." SSN CSG gains $40 million in additional financing R. Ginsburg New funding is an expansion on $350m credit facility from 2014 www.securitysystemsnews.com august 2017 s EC u RI t Y s Y st EM s NEW s Residential s ystems 22 residential s ystems

Articles in this issue

Links on this page

Archives of this issue

view archives of Security Systems News - AUG 2017