Advanced Security Technologies acquires Premier Security and Fire

RIVERSIDE, Calif.—With Advanced Security Technologies’ (AST's) recent acquisition of Premier Security and Fire of Modesto, CEO Bob Ricucci told Security Systems News that AST adds a mostly commercial account base in the “heart of one of our more dense customer areas, featuring many of the same services.” The purchase was financed by Alarm Financial Services (AFS) for an undisclosed amount.

“They were recommended to us through our associate Jim Wooster at AFS,” said Ricucci, who noted that the Premier business and customer service model fit in nicely with the culture at AST. “Upon review, their client profile and opportunity to maintain and enhance services was clear and of value to us in pursuing the deal.”

The deal adds more than 500 accounts, and the average RMR was “well above industry norms,” Ricucci said. “The revenue is about 25 percent of AST historical ... the mix was over 80 percent commercial, perhaps a bit more, but certainly, like AST, they are largely a mid-commercial client company with various commercial verticals like hotels and apartment, retail and office, and a good base of K-12 educational facilities.”

For more than two decades, Russ W. Vorse has owned and operated Premier Security and Fire, Inc., bringing local service and world-class technologies to safeguard residences and businesses throughout the Central Valley. Premier’s CEO Russ W. Vorse said, “We’re confident that AST can provide the same level of service that our customers have come to expect from us.”

Alarm Financial Services provides loans and lines of credit for dealers looking to grow their business, consolidate debt, expand operations or buy out a partner. Founded in 1987 by Jim Wooster, Sr., AFS is the oldest such funding company serving the alarm industry. “Our partnership with Alarm Financial Services has been instrumental in successfully completing this transaction,” added Ricucci.

 GROWTH STRATEGY

 Looking at how this acquisition fits into the overall growth strategy, Ricucci pointed out that prior to this deal, AST’s growth had been mostly organic.

“My background over the years, especially with PSI, was more impacted by acquisitions, but with AST, our growth has been mostly organic,” Ricucci explained. “We have been pleased with this model of organic growth, but within the last two years, as the markets have continued to evolve and adjust, sometimes dramatically, I have seen more value in an accretive acquisition as a significant component of our growth model.”

He continued, “From this point, while we are still an organic growth company at our heart, we will be much more active and interested in continued growth through acquisitions of the right sort going forward. We now feel that the ‘two-headed’ approach to growth, utilizing our abilities in both arenas, will be the way forward for AST.”

Ricucci noted that AST has enjoyed 15-18 percent annual growth in RMR over the last three years, and about the same in overall revenue.

“Despite a slight dip in the heart of COVID, we have seen a steady contribution on service and margin install sales as well,” he said. “We felt that this growth target will continue to be viable, as we develop more and better solutions. AST is at its core a Total Solutions Life Safety and Security business, and the marketplace and the solutions set offer great reason for optimism in the coming years, we believe.”

AST is a Total Solutions provider of Life Safety, Security and Asset Protection solutions, providing the highest level of value to their clients throughout California and beyond for over 16 years. Click here for more.