Based in Exton, Pa., Compass is expected to generate more than $2 million in revenue in 2006.
Joel Konicek, CEO of Security Holding Corp., said, "Compass is a leader in the design and manufacturing of access control systems, especially as it relates to the educational market including K-12 and university. We believe this acquisition will enable us to be on the cutting edge of electronic security by integrating our RFID and digital video capabilities with Compass' access control technology."
Jerry Cordasco, president of Compass Technologies, said, "We are delighted to begin operating under the Security Holding Corp. and Homeland Security umbrella. After a substantial R&D investment in our products over the past few years, we believe we are now ready to capitalize on the market growth in this area. Our relationship with the other technology companies within Security Holding Corp. and HSSC will further enhance our ability to provide complete solutions to all of our customers."
C. Thomas McMillen, chairman and CEO of Homeland Security Capital Corp., said, "We are delighted to add another high growth technology company to our increasing portfolio of homeland security-related companies With the acquisition of Compass, our annualized revenue run rate is approximately $18 million."
In a related matter, McMillen said Homeland Security Capital Corp.'s subsidiary Nexus Technologies Group, has terminated it negotiations to acquire Viscom Systems, Inc. a security integrator based in Cambridge, Mass. McMillen said the parties were unable to agree on terms.

The newly acquired Compass Technologies, is one of four operating subsidiaries of Security Holding Corp. Another one is SecurityInc, LLC, a Milwaukee-based company that includes a management and engineering team with more than 100 years of combined experience in the RFID, security and access control industries. AAID is a manufacturer and master distributor of RFID-enabled solutions for residential, commercial and government sectors. And the fourth subsidiary is Cyberlynk, a provider of redundant server applications, IT and router support infrastructure, FTP site hosting and spam and virus removal services.

Homeland Security Capital Corporation, the mother company of Security Holding is a consolidator in the fragmented homeland security industry. The company is focused on creating long-term value by taking controlling interest and developing its subsidiary companies through superior operations and management. The company is headed by former Congressman C. Thomas McMillen, who served three consecutive terms in the U.S. House of Representatives from the 4th Congressional District of Maryland.
Homeland Security Capital intends to operate businesses that provide homeland security products and services solutions, growing organically and by acquisitions. The company is targeting emerging companies that are generating revenues but face challenges in scaling their businesses to capitalize on homeland security opportunities. The company will enhance the operations of these companies by helping them generate new business, grow revenues and improve cash flows.