Three deals give ASG more reach in Texas
BELTSVILLE, Md. - A trio of recent acquisitions for ASG Security continues to build the companyÃ¢â‚¬â„¢s business in the Texas market.
Within a span of a few days, the company closed on three separate transactions that tallied $158,000 in additional monthly recurring revenue - bringing it closer to its goal of 55,000 customers and $35 million in annual revenues. The company currently serves 43,000 customers.
Ã¢â‚¬Å“WeÃ¢â‚¬â„¢re actually a little ahead of the schedule in getting market density,Ã¢â‚¬Â said Joe Nuccio, president of ASG Security.
Of the transactions, the largest involved buying 4,200 accounts in the Dallas, Houston, San Antonio and Austin, Texas markets from an unnamed company that remains in business. The deal accounts for $108,000 in monthly recurring revenue and provides ASG Security with a greater presence in Austin, where it plans to open an office to support customers in that market.
ASG Security also picked up Advance-Tech Security of San Antonio. Owned by Richard Donell, who is leaving the security industry, the company had 65 percent of its customers on the commercial side of the market. The company provides $11,000 in recurring revenue.
Transtate Security Systems in Loredo, Texas, contributed 1,200 accounts to ASG SecurityÃ¢â‚¬â„¢s base and a new office. Of those customers, 65 percent are commercial. The transaction also provides $39,000 a month in recurring revenue and greater density in the Rio Grande Valley area.
As a result of these acquisitions and others, ASG Security is experiencing greater efficiencies, according to Bob Ryan, vice president of sales and marketing.
Ã¢â‚¬Å“WeÃ¢â‚¬â„¢re operationally more sound than weÃ¢â‚¬â„¢ve ever been,Ã¢â‚¬Â he said. Ã¢â‚¬Å“And weÃ¢â‚¬â„¢ve done this in a way that doesnÃ¢â‚¬â„¢t stretch our resources.Ã¢â‚¬Â
Perot Bissell, partner of Northwest Capital in Seattle, one of several investors in ASG Security, said he is pleased with the progress made so far.
Ã¢â‚¬Å“The acquisitions that theyÃ¢â‚¬â„¢ve done have been exactly consistent with our strategy, which is to stay within our existing footprint,Ã¢â‚¬Â said Bissell.
Currently the companyÃ¢â‚¬â„¢s focus is on serving the Mid-Atlantic market and Texas, but both Bissell and Nuccio said branching into other markets may be part of the companyÃ¢â‚¬â„¢s not too distant future.