Canadian firms join forces
MONTREAL - Systems integrator Securplus has entered into an option to buy out Five Star Protection by the end of 2008.
The deal is unique in that it immediately brings together two companies with different areas of expertise.
Five Star Protection was originally formed five years ago to provide security system sales, but began installing systems when an agreement with a company to do the installation work fell through. Its arrangement with Securplus enables Five Star Protection to return to its roots.
Securplus, on the other hand, gets to expand its sales force and its residential and small commercial market presence thanks to the deal. Sixty percent of its business currently comes from the commercial security market, mainly integrated security systems and access control for Fortune 500 companies and the government.
Ã¢â‚¬Å“The benefit is you keep the energy in the right place, in terms of one doing sales, the other doing installs,Ã¢â‚¬Â said Vincent Rossi, president and owner of Securplus, based here.
The plan is for Securplus to buy out Five Star Protection during a four-year period, but retain each companyÃ¢â‚¬â„¢s individual identity. Together the two companies employ 17 people. The purchase price was not released.
Five Star Protection brings to the deal five sales employees, including founder Andre Houle and business partner Raymond LeClair. The companyÃ¢â‚¬â„¢s employees continue to be based out of Longueuil, Quebec, but administrative functions are now handled in Montreal, which is approximately 20Ã‚Â miles away.
Ã¢â‚¬Å“WeÃ‚Â didnÃ¢â‚¬â„¢t get rid of theÃ‚Â company,Ã¢â‚¬Â explained Houle, the president ofÃ‚Â Five Star Protection. Ã¢â‚¬Å“It gives us an opportunity to do what weÃ¢â‚¬â„¢re best at. WeÃ¢â‚¬â„¢re best at selling.Ã¢â‚¬Â
Rossi expects the agreement with Five Star Protection will bring between 15 to 20 additional installations each month. And, it enables Securplus to extend into a neighboring market.
Securplus serves more than 5,000 customers and is mainly focused on the Montreal area. But as its customer base now grows as part of this agreement, Rossi plans to hire additional employees to handle the added workload.