Checkpoint Systems, a global supplier of loss-prevention products and solutions for the retail industry, announced earlier this month that it was negotiating the sale of its CheckView integration and monitoring business. On Monday, the buyer was ID’d: Platinum Equity, a California-based private equity firm, which will make the deal for $5.4 million.
In a blog Tuesday, Seeking Alpha analyst Brenon Daly called the deal “one of the more financially lopsided divestitures we've seen in some time. ... The electronic security unit generated roughly $77 million of revenue in 2012, although it did run slightly in the red.”
The transaction includes CheckView’s CSAA Five Diamond-certified central station in Chanhassen, Minn. CheckView also sells digital video cameras and monitors to combat retail crime, along with fire and intrusion alarm systems for that vertical.
In a prepared statement, Checkpoint said its board of directors had determined that CheckView could better serve its customers as an independent, entrepreneurial and more focused organization. George Babich, who was named Checkpoint’s CEO and president on March 4, said that Platinum Equity has “a strong track record helping companies reach their full potential. … We are committed to support CheckView throughout the sale process to ensure an orderly transition with full continuity of service to customers.”
“CheckView will act as a platform acquisition and allow us to focus on the core business while pursuing organic-growth initiatives and strategic add-ons in a highly fragmented space,” said Platinum Equity principal Jason Leach.
On March 5, Checkpoint reported a fourth-quarter loss of $35.4 million, or 86 cents per share. That compares with a loss of $19.1 million, or 47 cents per share, a year earlier. The company’s shares closed at $13.43 on Tuesday on the New York Stock Exchange.
ASAP honors for Richmond: Computerworld, which bills itself as “the leading source of technology news and information for IT influencers,” recently gave a nod to Richmond, Va., for a tech program that’s been making headlines in the alarm world: the Automated Secure Alarm Protocol.
Richmond’s participation in ASAP earned the city a 2013 Computerworld Honors Laureate, an award that recognizes “visionary applications of information technology promoting positive social, economic and educational change.” Richmond was one of three public safety answering points that served as charter municipalities for the program; six were participating by the end of 2012.
“Receiving Computerworld’s Honors Laureate acknowledges the outstanding achievement and advancement of our city’s Department of Information Technology and 911 staff in providing excellent service to Richmond’s residents,” Mayor Dwight Jones said in a prepared statement. “The benefits of the Automated Secure Alarm Protocol program are tremendous as it reduces 911 processing times, reduces response times by first responders, and provides an extremely accurate data exchange between the alarm monitoring companies and [PSAPs].”