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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Page 32 of 46

NorthStar opens dealer program By Spencer Ives CALHOUN, Ga.—Owen Security Solutions, a regional alarm compa- ny based here, recently completed the largest acquisition in the com- pany's history, adding on more than 1,700 accounts when it purchased ACS Security-Rome. "This is the most exciting acqui- sition we've done so far," Justin Owen, company president, told Security Systems News. "[ACS] is somebody we've actually compet- ed against for the last 15, 20 years. It's always been a respected com- petitor." The deal was finalized on July 18. "This acquisition is directly in the middle of where we were already growing, so it was an exciting opportunity and it's going to fit our customer base extremely well," Owen said. The company is focused on the Northwest Georgia region. Owen Security now has more than 7,000 accounts. ACS' cus- tomer base is about 75 percent residential, according to Owen. This purchase was assisted by the company's recently announced $5 million line of credit from Capital One, Owen noted. "We wouldn't have been able to do this acquisi- tion—of this size—[without] that line of credit," he said. ACS Security-Rome is the com- pany's fifth purchase in less than a year, and Owen Security had not done any acquisitions prior to 2016, Owen noted. The company also acquired DAS Security, includ- ing about 150 accounts in mid-May. "We plan to continue to pursue acquisitions very heavily, along with our organic growth as well," Owen said. Owen security is hiring three employees from ACS and recently opened a branch office in Rome, Ga.—the company's third branch, alongside its headquarters here and an office in Cartersville, Ga. The company is also planning a fourth office in Dalton, Ga. SSN By Spencer Ives ENGLEWOOD, Colo.—Ascent Capital Group, MONI's parent company based here, announced yesterday that Fred Graffam will succeed Michael Meyers as Ascent's CFO as well as MONI's CFO. Graffam told Security Systems News that he will be overseeing regulatory filings from a finance perspective and "Making sure that the accounting systems and control environment at the com- pany remain strong, as it is now. And then, from that perspective, it's really a focus on making sure that the initiatives of the company are being properly funded, that resources are being allocated in a way that makes sense." Ascent announced Meyers retirement in early January. In that announcement, Ascent said that Meyers would remain in his role until a replacement was found. The transition of responsibilities to Graffam will be official around Sept. 1, 2017. Graffam has more than 25 years of financial management and accounting experience; he currently serves as senior vice pres- ident of finance for DigitalGlobe Inc. During his tenure with Digi- talGlobe, Graffam has led financial planning and analysis, investor relations and M&A functions. Prior to DigitalGlobe, Graffam served as SVP o f f i n a n c e , North America and Asia Pacif- ic, for Level 3 Communi- cations from 2012 to 2013. He also spent 17 years with Comcast Corporation, serving as SVP of Comcast's DC and Balti- more Region and as SVP-finance, West Division during his tenure. He began his career in public accounting with Deloitte Touche. "I'm very used to subscription businesses, recurring revenue businesses," Graffam said. "Think about where MONI is going with more of the direct-to-home and the self-installed—that's what Comcast has been doing for years. So, I'm very used to truck rolls, and serv- ing customers and … everything that goes with that, [like] high lev- els of transaction volumes." Graffam continued, "I'm not an expert in home security, but I have enough similarities between the cable business and … even the B2B business, such as [with] Level Three, that the learning curve will at least be mitigated as I move into home security monitoring." "We are excited to welcome Fred to the Ascent executive team," Bill Fitzgerald, chairman and CEO of Ascent, said in a pre- pared statement. "Fred's skillset fits well within the existing finance organization and his broad range of experiences with recurring revenue businesses will serve our leadership team and business very well," Fitzgerald said. "Fred is an excellent addition to the MONI senior leadership team, bringing strong financial and public company experience and a background in the technol- ogy and telecom industries," Jeff Gardner, president and CEO of MONI Smart Security, said the announcement. SSN Ascent Capital names new CFO By Spencer Ives OREM, Utah—Home secu- rity and automation company NorthStar recently announced its new Authorized Affiliate Funding Program. "It's a traditional dealer fund- ing program where we work with independent, licensed com- panies that originate contracts and do the installation for NorthStar," Nick Perry, vice president of business develop- ment at NorthStar, told Security Sys- tems News. "We are very aggressive on up-front multiples, we also have a very aggressive residual, and an equity program." These compa- nies would be co-branded as a NorthStar authorized affiliated, Perry noted. NorthStar started the division in January and for- mally announced it in July. Since January, the company has added more than 20 new dealers. "It's allowing [NorthStar] to scale our business nationwide, have a permanent presence in certain markets and increase RMR in a very predictable, scal- able platform," Perry said. NorthStar has been in busi- ness for 17 years and this is the first time it's introduced a dealer program, Perry said. "We are a full-service alarm company, which makes us a little unique for dealer programs. We do have a direct sales force that sells and installs NorthStar customers." "We also provide sales train- ing, technical training, … an automated process for pull- ing credits and tracking deals, dashboards, real-time metrics—total trans- parency. What we're trying to do is really make our affiliates part of our company and partners with us outside of just buying accounts," Perry said. "The program was designed to complement our existing sales teams and cre- ate a new sales channel that's beneficial to everybody, doesn't conflict with what we're doing, and helps the business grow and build concentration nationally," said Perry. NorthStar has accounts in more than 35 states, Perry noted. Perry was hired at NorthStar specifically for designing and implementing its dealer pro- gram. Previously, he worked with dealer sales and develop- ment at Security Networks, which Monitronics—now MONI—acquired in 2013. SSN Owen Security acquires competitor in Georgia Nick Perry Fred Graffam 2017 STI 800-888-4784 PROBLEM SOLUTION Vandalism and Damage STI's Super Tough Damage Stoppers ® Strong 9-ga. steel wire construction takes abuse Protect from accidental and intentional damage Cages for lights, smoke detectors, clocks, cameras, strobes, PIRs, exit signs and more Many shapes and sizes Rely on STI! TM September 2017 S e CU r I t Y SYS tem S N e WS Residential s ystems 26

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