Bay Alarm makes 'strategic move' with SDA buy

Super-regional adds commercial strength, density
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Wednesday, May 28, 2014

SAN DIEGO—Super-regional Bay Alarm’s May 21 acquisition of SDA Security, based here, adds commercial strength and density in southern California, David Carter, CEO of NetOne, told Security Systems News.

Carter called the deal “very positive” for NetOne, a consortium of security companies. “Very simply, we are not losing any company to an outside acquisition. Both [Bay and SDA] are 25-plus-year members [of NetOne], now that they are coming together, that legacy will continue,” he said.

Bay Alarm, based in Pacheco, Calif., and SDA Security are part of NetOne, (formerly Security Networks of America), a network of 35 independent security companies. Each has an UL-listed central station. Together, they serve 775,000 monitored customers in 32 states and three Canadian provinces.

SDA was represented by SPP Advisors in the deal. Terms of the deal were not released.

Calling it a “terrific strategic move for Bay Alarm,” SPP Advisors’ managing director Peter Flynn told SSN: “SDA is the dominant, independent alarm company in the San Diego area and is one of the oldest and most respected alarm companies in the southern California area. Bay Alarm was a perfect fit for SDA as both companies focus on providing quality service to their customers and their operating philosophies are very similar.”

Founded by Harold Eales in 1930, SDA was run by three generations of the same family. Rodney Eales ran the company for 40 years and since 2007, Eales’ granddaughter, Shandon Harbour, has served as president of the company. That year, Harbour was also chosen to be a member of SSN’s “20 under 40.”

SDA’s business was predominantly commercial. Its footprint included the San Diego and Inland Empire markets.

Aside from Harbour and Eales, who are exiting the business, SDA Security employees are expected to join Bay Alarm, Carter said.

Bay Alarm, another family business, was founded by the Westphal family in 1946. It serves more than 120,000 residential and commercial customers throughout California. In addition to its headquarters in Pacheco, Calif., it has 14 branch offices throughout the state.

Shandon Harbour, Matthew Westphal and Graham Westphal did not return Security Systems News’ phone calls or emails seeking comment on the deal.