CSG acquires SecureNet
TULSA, Okla.—Central Security Group, a full-service security provider based here, has acquired SecureNet Alarm Systems in a deal that brings CSG more than 22,000 accounts, $650,000 in RMR and a new central station.
The acquisition, the largest ever for CSG, was completed through a “walk away stock deal at an aggressive multiple,” the company said in a prepared statement. Financial details were not disclosed.
SecureNet, founded in 1996 and based in Wichita, Kan., specializes in burglar alarm, fire alarm and video systems, interactive services, access control and monitoring. It has 130 employees and branches in five states: Kansas (Wichita and Kansas City), Oklahoma (Oklahoma City), Missouri (Springfield), Ohio (Dayton) and Colorado (Colorado Springs).
Seventy percent of the acquired accounts are residential, with the largest concentrations in Wichita and Oklahoma City. That fits well with CSG’s existing footprint, said Glenn Albers, vice president of dealer operations.
“The overlay of the accounts was great,” he told Security Systems News. “As you know, the Midwest is huge for us.”
CSG now has more than 192,000 customers nationwide. In addition to the five states covered in the SecureNet deal, CSG has accounts in California, Arizona, Texas, Arkansas, Louisiana, Kentucky, Tennessee, Mississippi, Alabama, Georgia, Florida, South Carolina and North Carolina.
The acquisition also provides CSG with a second monitoring center, located at SecureNet’s 22,000-square-foot headquarters in Wichita. The facility was constructed in 2006.
“I’m [visiting] right now and it’s nice—state of the art,” Albers told SSN. “So now we have a fully redundant, UL-listed central station, which was a big part of the deal.”
Randy Rosiere, president and founder of SecureNet, said he always knew that when the time came to sell the company, the buyer would be CSG.
“I’ve known Mark Wilson [CEO of CSG] and Harry Schenk [CFO] for many years,” Rosiere said in the prepared statement. “I also know their character and trusted that they would give me a fair deal. They did just that. I know my customers and staff members will be well taken care of, which is very important to me.”
Rosiere, Wilson and Schenk previously worked together at Multimedia Security Service, an alarm monitoring company that was sold to Protection 1 in 1998. Albers said there had been discussions over the years about CSG acquiring SecureNet, but nothing advanced until this year.
“This latest iteration was fast, two months maybe,” he said.
Schenk called the addition of SecureNet “huge” for CSG’s portfolio.
“There are very few entities of this magnitude, let alone of this quality,” he said. “To get both in one acquisition is a true win for all involved. SecureNet allows us to realize the cost advantages that come along with economies of scale.”