Diversified makes its first buy since going public
SADDLE BROOK, N.J.-Systems integrator Diversified Security Solutions made its first acquisition since going public earlier this year,Ã‚Â buying PhotoScan Systems, a Los Angeles company that specializes in security systems for medical facilities.
The deal expands Diversified Security's footprint into the West Coast, providing the company with a platform to grow in that geographic market.
"The presence is the most important thing," said Irv Witcosky, president and chief operating officer of Diversified. "I'm hoping for a significant contribution and that office adds to my revenues for the year."
Though the deal is small in size - Diversified bought PhotoScan for $600,000 in common stock and cash - Witcosky intends to expand the West Coast operations significantly with the help of three new employees. The new hires are Alex Pavlis, vice president of systems integration, Jamie Mena, who is Microsoft Certified and a certified network engineer and Dennis Legg, who specializes in project engineering.
Witcosky said PhotoScan Systems will add airport, transit systems and the high-rise market to its portfolio, following the markets that Diversified has carved out as its niche areas in the East.
"The benefit is we'll be able to expand the business on the West Coast much more rapidly than we would without Diversified," said Michael Stretton, who sold theÃ‚Â company.Ã‚Â HeÃ‚Â remainsÃ‚Â on-board as executive vice president.
PhotoScan also brings to the table maintenance agreements with 20 customers and a profitable business.
"We like the fact that they didn't have any baggage," Witcosky said. "There wasn't any liability to worry about. It's what they call a clean deal."
PhotoScan averaged $850,000 in annual sales for each of the last five years, said Witcosky. For the company's fourth quarter, which ended March 31, PhotoScan had unaudited sales of $294,000.
Another instrumental person who will remain with PhotoScan is founder Bob Simon. Simon, who sold the business to Stretton a year ago, is now working in a sales capacity for the company.