SAN RAMON, Calif. — SAFE Security has acquired Scottsdale, Ariz.-based Safeguard Security and Communications, representing approximately $1.5 million in recurring monthly revenue (RMR) and 25,000 customers. 

 

“We are excited to partner with this fine company and intend to maintain the operations that have made Safeguard one of the premier regional security companies in the United States,” Paul Sargenti, SAFE Security President and CEO, said in a press release. “Safeguard’s and SAFE’s cultures are an excellent fit and we intend to continue the tradition of excellence that has made Safeguard a success for over 50 years.”

 

Safeguard Security CEO John Jennings, a member of the SSI Industry Hall of Fame, said when the time came to sell the company and begin a new chapter for he and his family, selecting the right buyer was crucial.

 

“Honestly, there was only one choice I thought would be the right match for continuing the tradition of excellence I’ve worked so hard to establish,” Jennings said. “Paul Sargenti and SAFE Security are known for fair dealing and common sense when it comes to mergers and acquisitions. I wanted the buyer for my company to appreciate what I’ve accomplished, as well as a buyer with a culture that would respect the people who helped me build Safeguard. I’m confident that together SAFE and Safeguard will continue to serve the Arizona market with distinction and quality.”

 

Founded in 1961, Safeguard initially focused on high income clientele, particularly those who had second homes in the Paradise Valley area outside of Phoenix. The company would quickly become a leading security provider for gated communities requiring patrol and guard services.

 

Safeguard later added school districts, homeowner associations and commercial clients to its customer base throughout the greater Phoenix, Tucson and Prescott markets, and beyond. In November 2013 the company divested its New Mexico operations, selling 1,400 mostly residential accounts to Alarm Capital Alliance (ACA) totaling more than $50,000 in RMR.

 

SAFE Security, founded in 1988, bills itself as one of the few fully national alarm companies with operations in 50 states, Puerto Rico and Canada. The company was acquired by ICV Partners (ICV), an investment firm focused on lower middle market companies, in December 2012. Since then the company has remained acquisitive. Among its transactions were 16,000 CastleRock Security residential and commercial alarm monitoring subscriber accounts from Alarm Funding Associates, and 35,000 subscriber accounts from Pinnacle Security.

 

Also under the SAFE corporate umbrella is the central station SAFE Monitoring Technologies, full service alarm company California Security Alarms, plus a dealer program, an authorized national service provider network, and the resource infrastructure to provide business and account management services.

 

Terms of the deal for Safeguard Security have not been made public. SAFE Security was advised by SPP Advisors; Safeguard Security was advised by Mitchell, Silberberg & Knupp.

 

SSI continues to report this story.

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SSN, by Martha Entwistle

 

SAN DIEGO—Super-regional Bay Alarm’s May 21 acquisition of SDA Security, based here, adds commercial strength and density in southern California, David Carter, CEO of NetOne, told Security Systems News.

 

Carter called the deal “very positive” for NetOne, a consortium of security companies. “Very simply, we are not losing any company to an outside acquisition. Both [Bay and SDA] are 25-plus-year members [of NetOne], now that they are coming together, that legacy will continue,” he said.

 

Bay Alarm, based in Pacheco, Calif., and SDA Security are part of NetOne, (formerly Security Networks of America), a network of 35 independent security companies. Each has an UL-listed central station. Together, they serve 775,000 monitored customers in 32 states and three Canadian provinces.

 

SDA was represented by SPP Advisors in the deal. Terms of the deal were not released.

 

Calling it a “terrific strategic move for Bay Alarm,” SPP Advisors’ managing director Peter Flynn told SSN: “SDA is the dominant, independent alarm company in the San Diego area and is one of the oldest and most respected alarm companies in the southern California area. Bay Alarm was a perfect fit for SDA as both companies focus on providing quality service to their customers and their operating philosophies are very similar.”

 

Founded by Harold Eales in 1930, SDA was run by three generations of the same family. Rodney Eales ran the company for 40 years and since 2007, Eales’ granddaughter, Shandon Harbour, has served as president of the company. That year, Harbour was also chosen to be a member of SSN’s “20 under 40.”

 

SDA’s business was predominantly commercial. Its footprint included the San Diego and Inland Empire markets.

 

Aside from Harbour and Eales, who are exiting the business, SDA Security employees are expected to join Bay Alarm, Carter said.

 

Bay Alarm, another family business, was founded by the Westphal family in 1946. It serves more than 120,000 residential and commercial customers throughout California. In addition to its headquarters in Pacheco, Calif., it has 14 branch offices throughout the state.

Shandon Harbour, Matthew Westphal and Graham Westphal did not return Security Systems News’ phone calls or emails seeking comment on the deal. 

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