The purchase price for the alarm contracts is approximately $7.8 million and represents a purchase multiple of 33.0 times the recurring monthly revenues (RMR). Consideration for the Minnesota account acquisition comes from IASG cash balances.
In announcing the acquisition, Charles May, President and CEO of IASG said, "We are pleased to be adding these contracts to the IASG alarm portfolio. Having monitored the portfolio for some time we are quite familiar with the characteristics of the CenterPoint accounts. These Minnesota accounts fit our portfolio criteria very well and have excellent geographic concentration. Account concentration is important to achieve both high customer service levels and operational efficiency."
May continued, "In recent months we have made good progress in integrating several important operations and past business and account acquisitions. This progress allows IASG to resume account acquisition activity and positions the Company to resume growth."
Andrea Newman, Vice President, Retail Services of CenterPoint Energy said, "A major consideration for us was that the buyer has a local monitoring and customer service presence. IASG has been our authorized provider of monitoring and service for several years. Our customers are our top priority and we know they meet our high standards for quality and excellence. IASG represents the best fit for both CenterPoint Energy and for our customers."
17/10/2006
IASG acquires Minnesota Alarm Contracts for almost 8M USD
Albany, NY
Integrated Alarm Services Group, Inc. has just announced the acquisition of approximately 9,600 alarm contracts generating approximately $235,000 in recurring monthly revenues. The residential alarm contracts are located in Minnesota and are being acquired from the Minnesota natural gas operating subsidiary of CenterPoint Energy. The alarm contracts have been monitored and serviced by IASG South St. Paul, Minnesota central station since 1998 and they will continue to be monitored at this site.
Global
