security

Golden Gate Exits Devcon Security

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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

The Edgewater Funds Acquires FlexPoint Technology

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Haystax Technology, a portfolio company of the Edgewater Funds, has acquired FlexPoint Technology. This acquisition extends Haystax products and services in defense and intelligence markets and marks the second add-on acquisition for the company.

Haystax provides information integration, data analytics and visualization services used to process data in the intelligence, defense and security sectors. The company is based in San Jose, CA (www.haystaxtechnology.com).

FlexPoint Technology is an IT professional services company that provides cloud computing and enterprise content management services to government customers with demanding security requirements. Services provided include identity management, secure collaboration services, infrastructure management and application development. Following the acquisition, FlexPoint will continue to be led by its president, David Conrad. The company is based in Reston, VA (www.flexpointtech.com).

“The addition of FlexPoint Technology’s cloud computing and security services perfectly complements our existing capabilities in big data analytics and mobile solutions. This combination results in a full spectrum of products and services with expertise in each of the four technology forces that are revolutionizing government and private industry,” said Haystax Technology CEO, William Van Vleet.

The Edgewater Funds invests in companies with revenues from $20 million to $500 million and EBITDAs from $5 million to $30 million. Sectors of interest include business services, financial and government services, consumer products and services, health care services, IT services and software and basic industries. The firm has $1.4 billion in committed capital and is based in Chicago (www.edgewaterfunds.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-8-13

The Edgewater Funds Acquires Digital Sandbox

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Haystax Technology, a portfolio company of the Edgewater Funds, has acquired Digital Sandbox. This acquisition extends Haystax capabilities and products in public safety, law enforcement and corporate security markets.

Digital Sandbox provides threat and risk analysis and monitoring software to the national security and homeland security sectors. The company’s products are used by federal, state, and local agencies to quantify and monitor risks from natural and man-made threats, and to direct resources based on threat and risk priorities. Following the acquisition, Digital Sandbox will continue to be led by its president, Anthony Beverina. The company was founded in 1998 and is based in McLean, VA (www.dsbox.com).

Haystax provides information integration, data analytics and visualization services used to process data in the intelligence, defense and security sectors. The company is based in San Jose, CA (www.haystaxtechnology.com).

“The accelerating variety, volume and velocity of available data can overwhelm organizations and leaders responsible for ensuring the safety of major companies and events. We are excited to add Digital Sandbox’s technologies to provide our customers with scalable analytics to monitor hundreds of real-time news and social media feeds with mobile solutions to enable entirely new capabilities for prioritized, intelligent decision-making,” said William Van Vleet, Chief Executive Officer of Haystax.

The Edgewater Funds invests in companies with revenues from $20 million to $500 million and EBITDAs from $5 million to $30 million. Sectors of interest include business services, financial and government services, consumer products and services, health care services, IT services and software and basic industries. The firm has $1.4 billion in committed capital and is based in Chicago (www.edgewaterfunds.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-8-13

ICV Partners Acquires SAFE Security

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ICV Partners has acquired SAFE Security, a provider of residential and commercial security alarm systems, monitoring services, and support services.

SAFE Security provides alarm monitoring services, installation, maintenance and other related services to homeowners and businesses across the nation.  The company was founded in 1988 by CEO Paul Sargenti and is based in San Ramon, CA (www.safesecurity.com).  SAFE sources new accounts primarily by purchasing existing security alarm contracts from other security alarm companies and develops new accounts from a network of dealers nationwide.  Among the nation’s 12,000 security dealers, SAFE’s portfolio generates gross revenues that put it consistently in the top 25 U.S. alarm companies.

“Paul Sargenti has built SAFE into a strong company that today provides a valuable and compelling service to a broad and growing customer base.  The security alarm industry is highly fragmented and stable and has demonstrated resilience through the last recessionary period. We are confident that with a stable source of capital and additional expertise from ICV we can work with Paul and his strong management team to further grow the company,” said Cory Mims, a Managing Director of ICV.

ICV Partners invests in family-owned and closely-held businesses as well as corporate divestitures with revenues from $25 million to $250 million and EBITDAs from $5 million to $30 million. The firm has $440 million in capital under management and has offices in New York and Atlanta (www.icvpartners.com).

“The security alarm industry has 20 years of stable growth and our exciting new partnership with ICV will help accelerate our growth initiatives in existing and new markets.  ICV has a long history of successfully partnering with founder-owned companies and we look forward to working with them,” said Mr. Sargenti.

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-5-12

Apax Partners Acquires Garda

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Garda World Security Corporation, a security services firm, announced today that it has entered into an agreement with Stephan Cretier, Founder, Chairman and CEO of Garda, and Apax Partners to acquire Garda for C$1.1 billion in cash, including assumed debt. Under the terms of the transaction, the investment consortium will acquire each Class A share of Garda for C$12.00 in cash.

“Garda is a great Canadian success story and we intend to expand on that achievement,” said Mr. Cretier. “To achieve this goal, we intend to continue to pursue our growth strategy both organically and through acquisitions, which we can more efficiently accomplish as a private company. With Apax becoming a major shareholder, Garda will have access to a more flexible and efficient structure to fuel its growth.”

Garda is a global provider of security and cash logistics services. The company serves clients in countries throughout North America, Europe, Latin America, Africa, Asia and the Middle East. Garda works with clients in a range of sectors and industries including financial institutions, retailers, governments, humanitarian relief organizations and the natural resources, construction and telecommunications industries. Garda is based in Montreal and has 45,000 employees (www.gardaglobal.com).

Stephan Cretier founded Garda in 1995 with an investment of C$25,000 and grew the company to in excess of C$1.2 billion in annual revenues. Mr. Cretier is the largest shareholder of the company owning approximately 23.5% of shares outstanding.

“The investment by Apax is a ‘win-win’ opportunity for everyone involved. It provides Garda shareholders with a significant all-cash premium for their shares, while assuring a superior and sustained service for our clients,” said Mr. Cretier. “I’m proud of our accomplishments over our 17-year history. We owe our success and our bright future prospects to the talented and dedicated people at all levels of our company.”

“We are excited to partner with Garda’s highly-motivated, entrepreneurial management team to pursue growth opportunities in selected markets globally,” said Mitch Truwit, a Partner at Apax and Co-Head of the firm’s Financial & Business Services team.

Apax Partners has $35 billion of capital under management and operates across the United States, Europe and Asia. Sectors of interest include: technology & telecom; retail & consumer; media; healthcare; and financial & business services. The firm is based in London, UK (www.apax.com).

Royal Bank of Canada acted as M&A advisor to Apax Partners and along with Bank of America Merrill Lynch are providing financing for the transaction.

© 2012 PEPD • Private Equity’s Leading News Magazine • 9-10-12