DTT lands $60M credit facility
LOS ANGELES—DTT Surveillance, which announced in July that it would open a new office in Las Vegas, hire 500 new employees and enter two new vertical markets, now has $60 million to expand on those plans.
“It’s fuel for the fire,” Sam Naficy, DTT president and CEO, told Security Systems News. “We’ve had strong growth in our core hospitality space and our two new vertical markets—specialty retail and the convenience store space, which we launched in July—have done really well, better than we estimated,” he said.
As a result, DTT will be hiring more sales people for those vertical markets and rolling out service solutions aimed at those markets sooner, he said.
“We had planned on hiring 10 to 15 sales people for each vertical by year end, but we’ll probably end up north of 30 sales people for each vertical,” he said.
The $60 million credit facility is new and replaces a $44 million credit facility the company had in place with Capital One. The new revolver was led by Capital One. A new lender, CapitalSource, also participated in the deal.
In July, Naficy told SSN that DTT expected 2013 revenues to come in around $24 million. “We expect to hit and exceed that number,” Naficy said today. Where DTT is seeing big growth, he said, is in RMR, which is “increasing at a faster pace.” In July Naficy estimated total RMR would be at about $2.1 million by year’s end. Now, he predicts, “we will be significantly north of that.”
“We’re seeing more RMR per location as clients adopt more services. And the unit volume is also increasing [in all vertical markets],” he said. “Today we are adding two times the number of sites per month [compared to] one year ago.”
On a side note, Naficy said that DTT is “being taken more seriously by some of the big boys [national integrators].”
Asked if they were looking to buy DTT, Naficy said. “We’re not for sale now, but [those players] are interested in taking a look at our technology and delivery and how we’ve grown so fast so quickly,” he said.