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ADT to acquire Devcon Security for $148 million

ADT looking for more acquisitions
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07/31/2013

BOCA RATON, Fla.—The ADT Corp. announced this morning that it plans to acquire Devcon Security from Golden Gate Capital for $148.5 million. The deal—ADT’s first major acquisition since spinning off from Tyco International last fall—brings 117,000 accounts and $3.6 million of RMR. The transaction is expected to close in early August, Naren Gursahaney, ADT CEO, said during an investor call today.

Year of the acquisition continues

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Wednesday, September 12, 2018

This week Security Systems News reported on the sixth acquisition this year for both Convergint Technologies and ADS Security, two companies that have been very active this year on the M&A front, representing a continuing trend in this “year of the acquisition.”

It turns out that the M&A landscape overall is very strong and will continue to offer opportunities for companies looking to acquire and for companies looking to be acquired, according to Imperial Capital.

During his keynote presentation, Finance and the Future for Cloud and Security, at the Cloud+ conference (more coverage on this to come), Sept. 5-6, 2018, in Delray Beach, Fla., Rick Juarez, managing director, Imperial Capital, provided a rosy M&A picture for the industry today and moving forward.

He noted in his presentation that the security M&A market remains steady across all three major subsectors—physical security, identity solutions and information security—with strong activity seen in 2017 and YTD 2018.

“In terms of the overall health of the M&A market, if you are a young company looking to get acquired, or if you are a more mature company, the good news is that there is still a demand out there,” he explained, pointing to a slide showing 2018 ahead of the past five years in terms of M&A activity. “Going into the second quarter of this year, it is one of the strongest years for M&A, so I think that if you have a good solution, it is a good time to really explore an out, as it is not always going to remain like this.”

As is the case with companies like ADS and Convergint, acquisitions have helped the companies bring on more talent, increase capabilities and expand service capabilities and reach, while helping to grow the overall bottom line.

Convergint, for example, has strategically grown its service footprint across the United States, Canada, Europe and Asia Pacific through strong organic growth and the completion of 20 acquisitions since early 2016.

In terms of overall growth, Convergint's CEO Ken Lochiatto told SSN that Convergint will finish the year with strong organic growth in the mid-teens percentage-wise. “And if you take that along with the acquisition activity, we should be north of a billion dollars by year’s end, which is very exciting when you consider that we finished last year at $840 million.”
 

Interface deal good for the industry

 - 
Wednesday, August 9, 2017

The $600 million Interface Security Systems deal has sent—as The Beach Boys once sang—“good vibrations” throughout the security industry, as it provides not only a vote of confidence for what Interface is doing as a modern systems integration company, but also a vote of confidence in the security industry, in general, as companies like Interface represent a new breed of integrator that is staying at the forefront of new technology and innovation.

John E. Mack III, executive vice president, co-head of investment banking and mergers & acquisitions at Imperial Capital, which acted as financial advisor to Interface on the deal, astutely pointed out that this deal goes beyond validation of what Interface is doing in the space.

“This is a very cool story for the sophisticated new-age security provider, which is what Interface is—the 2.0 version of what the right kind of security player should be,” he told Security Systems News. “We spend so much time in this industry talking about the residential side of the business, which is interesting, but there is a massive opportunity on the commercial side of the business that Interface is tapping into that I think is a compelling theme.”

He continued, “There is a lot of validation for a very successful business model here that Prudential is putting up $180 million of new capital, and SunTx is putting up additional capital into the deal. And that you’ve got a very attractive set of debt investors, and just the fundamental backing for the business, is a meaningful part of a positive message for the industry.”

Jeff Frye, SVP for Interface, told SSN that the support from equity partners is not only a stamp of approval for what the company is doing, but the “capital gives us more fuel to build on our current, better than 15 percent compounded annual growth rate, so we know that we can do more with a little more gas in the tank and we are anxious to prove it.”

Frye noted that the equity will allow the company to expand its products and services around providing business intelligence, as security is becoming so much more than just, well, security.

“As a network provider, and a managed services provider of network services and cybersecurity services, we touch a lot of aspects of our customers’ businesses,” Frye explained. “And as a leading purveyor of Internet of Things services, we are able to aggregate intelligence from all of those sensors and data sources to bring actionable insights to a customer’s business. There are some new verticals that we would like to focus on more, including financial services and banking, so this makes that horizon much brighter and much more approachable.”

And it also makes the security industry’s horizon a little brighter.

Interface Security Systems closes on $600m refinancing for new capital structure

Funding to accelerate growth, double data center capacity within one year
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08/07/2017

ST. LOUIS and PLANO, Texas—Interface Security Systems on Aug. 3 announced the completion of a $600 million refinancing for a new capital structure that will facilitate strategic growth and expansion, with substantial contributions of new growth equity capital of $125 million from SunTx Capital Partners and Prudential Capital Partners.

OnSSI secures growth capital investment

Seacoast Capital investment supports company’s key business initiatives
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07/12/2017

PEARL RIVER, N.Y.—OnSSI announced on July 11 the completion of a $16 million private placement by Seacoast Capital, an institutional investor focused on high quality companies based in the U.S., with Imperial Capital acting as financial advisor and placement agent.

Comcast and Alarm.com to acquire Icontrol

Alarm.com to pay $140m for Connect and Piper businesses; Comcast to acquire Converge business for undisclosed price
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06/23/2016

TYSONS, Va. and PHILADELPHIA—Interactive services platform provider Alarm.com and cable giant Comcast today signed agreements to acquire different business units of platform provider Icontrol Networks, based in Redwood City, Calif.

Convergint acquires Total Recall

Dan Moceri: Convergint will expand smart city expertise
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05/04/2016

SCHAUMBURG, Ill.—One day after Convergint Technologies acquired New York-based systems integrator Total Recall, Total Recall president Jordan Heilweil was boarding a plane to meet a new customer in Savannah, Ga.

CCL to buy Checkpoint in $443m deal

Kessler: Combination will make Checkpoint ‘a better competitor to Tyco’
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03/02/2016

THOROFARE, N.J.—In a transaction valued at $443 million, Checkpoint Systems, a supplier of retail security and asset management solutions, today announced that it has agreed to be acquired by CCL Industries, a specialty packaging solutions company, for $10.15 per share in cash.

After ADT's news, Ascent stock rises

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Wednesday, February 17, 2016

Ascent Capital Group’s stock price rose yesterday, on news of the ADT/Apollo deal.

I asked Imperial Capital’s Jeff Kessler about the stock’s jump and he characterized it as a “knee jerk reaction to the fact that the only other company in the United States that’s public, being traded, is being taken over.”

Yesterday (Feb. 16) Ascent’s stock price rose as high as 49 percent over its previous close of (Feb. 12) of $8.27 per share.  Yesterday’s high was $12.29. The stock closed at $11.00 and had been hovering around that price today.

Ascent’s stock price has been declining over the last 12 months. This time last year the stock price was $47.50.

Kessler pointed out that AlarmForce, another publicly traded alarm company, also saw a small increase after the news of ADT’s acquisition agreement. “If ADT is taken private [Alarm Force and Ascent] will be the only two publicly traded alarm companies,” he said.

Ascent Capital Group is a more well known peer to ADT, Kessler said, which is why Ascent’s price was affected more than that of AlarmForce.

“It will certainly have more people eyeing Ascent, to see whether or not there is some value in the Ascent monitoring capability for another buyer,” Kessler said. “Certainly I would think that private equity firms are looking at Ascent, because the stock has fallen down so far … but there’s no guarantees.” 

Axis’ Citilog purchase to bring more tools to customers

Kessler: Deal means easier access to intelligence and integration for higher end projects
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02/03/2016

STOCKHOLM—Network video provider Axis Communications on Feb. 1 announced the acquisition of Citilog, a provider of intelligent real-time video monitoring for traffic and transportation security and safety.

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