Devcon Security, a provider of electronic security alarm monitoring services and a portfolio company of Golden Gate Capital, has been sold to The ADT Corp. for $148.5 million in cash. This is ADT’s first major acquisition since spinning out of Tyco International last year.
Devcon offers electronic security alarm monitoring services, including monitoring of burglary, fire, video, and security access systems to residential and commercial customers. Devcon is a regionally-focused alarm monitoring company serving the Florida and New York markets. The company’s 117,000 subscriber accounts generate $3.6 million of recurring monthly revenue placing it among the top 20 alarm monitoring companies in the US. The company was founded in 1951 and is based in Hollywood, FL (www.devconsecurity.com).
The ADT Corporation provides residential and small business electronic security, fire protection and other related alarm monitoring services in North America. ADT is the largest security company in the United States and Canada, serving over 6.4 million customers. The company is based in Boca Raton (www.adt.com).
Golden Gate Capital targets companies across a range of industries and transaction types, including leveraged buyouts, recapitalizations, corporate divestitures and spin-offs, build-ups and venture stage investing. The firm has approximately $12 billion of capital under management and is based in San Francisco (www.goldengatecap.com).
Imperial Capital acted as the exclusive financial advisor to Devcon Security on this transaction. Imperial Capital provides middle market companies and financial sponsors with capital markets, merger and acquisitions, capital structure, restructuring and recapitalization advisory services. The firm employs over 200 professionals and has offices in Los Angeles, New York, San Francisco, Boston, Chicago, Minneapolis, and London (www.imperialcapital.com).
“This transaction demonstrates the strength of Imperial Capital’s security industry investment banking expertise and the benefit of our extensive industry relationships. We are thrilled to have helped maximize value for the shareholders of Devcon,” said John Mack III, EVP, Managing Director and Co-Head of Investment Banking at Imperial Capital.
© 2013 PEPD • Private Equity’s Leading News Magazine • 8-12-13