CSG acquires Texas-based Lakeshore Alarm
TULSA, Okla.—Central Security Group has acquired Lakeshore Alarm Service of Texas in a deal that brings CSG more than 1,000 accounts in one of its fastest-growing markets.
The purchase of Lakeshore, a 9-year-old company based in the Houston suburb of Conroe, dovetailed nicely with CSG’s current acquisition strategy, said Glenn Albers, vice president of dealer operations for CSG.
“We’re always looking for the right big deal, but my focus remains on the dealer program and fold-in acquisitions, from 1,000 to 5,000 accounts,” he told Security Systems News. “This one was over 1,000, and the one we did in Kansas City [SafeLink Security] was over 1,000, and we’ve got a couple more in the pipeline that we’re working on.”
The Lakeshore deal, which closed on June 15, gives CSG an additional $25,000 in RMR, Albers said. Financial terms were not disclosed.
Albers said Lakeshore’s business was more than 90 percent residential, “which hit us right in the sweet spot because we’re almost 95 percent residential.” The accounts will be handled by CSG’s branch office in Houston.
Lakeshore’s owner, Richard Johnson, joined CSG’s dealer program and will continue to do business under a different company name, Albers said.
“He reached out to us [as a buyer] because he knew our reputation and he has worked with a number of our employees in the past in Houston,” Albers said. “We struck a deal pretty quickly. … The way he does business and the way we do business are almost identical. This is one of those deals that is going to be seamless to the end user, which is nice.”
CSG is working on other acquisitions for 2012, Albers said, with a scheduled increase in the capital gains tax rate at the end of the year driving much of the activity.
“We’ve seen a lot of interest from guys who want to get their money out of the business now,” he said. “Even if they stay in business, selling off a big bulk of accounts now makes a lot of sense when you know what the tax rate is. We expect our pipeline to be full by the end of summer. That’s the hope.”