Monitronics Creates America’s Biggest Monitoring Company
by Security Electronics and Networks | @Articles News | July 21, 2013, 7:00am AEST
The deal, which is expected to close Aug. 16, includes $487.5 million of cash, and 253,333 newly issued shares of Ascent Series A common stock with an agreed value of $20 million, according to the statement. The purchase price, which is subject to agreement at closing, is based upon Security Networks delivering RMR of $8.8 million. Security Networks had 2012 revenues of $78.5 million and adjusted EBITDA2 of $46.5 million
“We want to take the best of Security Networks and the best of Monitronics and put them together so we have the best dealer program in the country,” Monitronics CEO Mike Haislip told Security Systems News.
The combined entity, which will continue to be headquartered in Dallas, “will be a bigger, stronger company that is able to support our dealers and be an even better opportunity for new dealers who want to join the program,” he added.
Haislip said that all Security networks employees will stay through a transition period and he hopes that most will stay on long term.He said the company will realize operational synergies by combining the 2 companies. He said Security Networks was very well run and has “good people in place, the accounts look like our accounts, and we expect them to perform a lot like our accounts.”
Importantly, the business models of both companies is the substantially the same. “We understand their operation,” Haislip said. Integration of 2 companies “is never easy, but this will not be as difficult as some companies.”