SecurTek acquires Scott Security Systems
YORKTON, Saskatchewan—Powered by a revolving line of credit from its parent company, SecurTek Monitoring Solutions, a provider of monitoring services for commercial and residential customers across Canada, has acquired 9,000 customer accounts from Burnaby, British Columbia-based Scott Security Systems, a company with a 30-year history in the region.
The deal was attractive, in part, because of Scott Security’s longstanding presence in the region, which Darrell Jones, SecurTek president and CEO, described as a “strong market to be engaged in.”
“Certainly one of the things we’re looking for in establishing dealers throughout Canada is companies with a strong history and strong community ties,” Jones said. “[Scott Security] has that reputation in the community, along with a strong customer base, so that bodes well for us.”
The deal was financed by a revolving line of credit of up to $10 million provided by SecurTek’s parent corporation, SaskTel, a Saskatchewan-based telecom company. The financing was made available for customer account purchases, and the investment in Scott’s accounts is the first acquisition within this approved financing.
Scott Security will continue to operate as Scott Security, retaining its brand in tandem with that of SecurTek, Jones said, with Scott “basically becoming an authorized SecurTek dealer.”
The Scott Security purchase, which brings in a nearly even mix of commercial and residential accounts, is the kind of strategic acquisition SecurTek, now 70,000 accounts strong, hopes to continue pursuing as part of its broader expansion strategy, Jones said.
“We’re going to continue to grow our company on a national basis, as we look for the companies across Canada that can offer the kind of local appeal that Scott Security offers,” Jones said. “We’ll continue to look for companies that we can form this kind of partnership or alliance with, and we have the additional line of credit available to set us up to do this.”