Security Systems News

SEP 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

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My Alarm Center to improve organic and acquisitive growth "We kicked off an effort to recapitalize the business about a year ago, looking to strengthen our financial position, our balance sheet, and give us a better opportunity to grow our business," Amy Kothari, My Alarm Center's president and CEO, told Security Systems News. The company ultimately decided to seek an "infusion of new cash equity and a complete refinancing of our debt." Kothari continued, "Through the deal [with Oaktree] we actually reduced our debt significantly, and we cut our interest rate even more signifi- cantly." My Alarm Center is Oaktree Capital Man- agement's first invest- ment in the security s p a c e , a c c o rd i n g t o K o t h a r i . I n a d d i t i o n t o O a k t re e , a g ro u p o f i n v e s t o r s l e d b y Ironwood Capital and Alcentra Capital Cor- poration also partici- pated in the transac- tion and will become minority shareholders in My Alarm Center. My Alarm Center was previously backed by Norwest Venture Partners. My Alarm Center plans to "invest a lot more in the company, in the growth plan, systems, tools, efficiencies, to help make everyone's jobs here easier and most importantly to be able to better serve our customers," according to Kothari. "We're just going to continue to do what we've been doing, with more resources and a stronger capital structure. The focus on accelerating growth really is going to come through our network of branches," Kothari said. The company has been focused more on direct-to- consumer sales in the last five years, she noted. "We want to continue to build a scalable organic engine to drive sustainable recurring rev- enue growth in targeted markets." The company will also be competitive in its dealer program and with acquisitions. " J u s t b e c a u s e w e ' v e shifted to a much more organic focus doesn't mean we're abandon- ing those channels at all," Kothari said. "Since closing our deal with Oaktree … we closed three bulk acquisitions, added a m a j o r h i g h - v o l u m e , high-quality dealer to our dealer program." Kothari declined to release account fig- ures of these deals. My Alarm Center has 6 branches, about 183,000 accounts and more than $7.5 million in RMR. SSN By SSN Staff BOCA RATON, Fla.—ADT on July 28 announced settlements with Alder, its owner, Adam Schanz, and two MONI dealers—Alliance Secu- rity and Capital Connect—as part of lawsuits against those three compa- nies and Schanz alleging the use of deceptive sales practices to mislead ADT customers. The agreements call for ADT to receive $3 million from Alder, $1.5 million from Alliance Security and $1 million from Capital Connect, for a total of $5.5 million and court orders prohibiting each company from further deceptive sales prac- tices. "We hope these settlements once again show that ADT greatly believes in protecting its customers from deceptive sales practices," P. Gray Finney, ADT chief legal officer, said in the announcement. "ADT will continue to pursue companies and ADT settles lawsuits with three companies Amy Kothari "Since closing our deal with Oaktree … we closed three bulk acquisitions, added a major high-volume, high-quality dealer to our dealer program." —Amy Kothari, m y Alarm Center Continued from page 1 their sales representatives who mis- represent themselves to deceive its customers." The settlements stem from two lawsuits in which ADT claimed sales representatives from Alder, Alliance Security and Capital Connect mis- led ADT customers into believing their companies were affiliated with ADT, or their alarm systems required upgrading. The lawsuits were filed after hun- dreds of ADT customers complained about the deceptive sales practices of these three companies, according to ADT. Since 2013, ADT has filed numer- ous lawsuits against companies who have made false or misleading statements to ADT customers when attempting to solicit their business and obtained court orders prohibit- ing those companies from further deceptive sales practices, along with monetary relief. SSN WHOLESALE MONITORING FUNDING PROGRAM LOAN PROGRAM mPERS PROGRAM BULK ACQUISITION M2M COMMUNICATOR (855) 776-2210 everything under one roof S e CU r I t Y SYS tem S N e WS September 2017 Residential s ystems 25

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