Security firm in $8m SA buy

15/03/2018 - 09:58

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Security services provider Threat Protect Australia has continued with its acquisition growth strategy, purchasing a South Australian security monitoring business for about $8 million.

Security firm in $8m SA buy
Demetrios Pynes says the acquisition makes strategic sense.

Security services provider Threat Protect Australia has continued with its acquisition growth strategy, purchasing a South Australian security monitoring business for about $8 million.

Since listing on the ASX in 2015, the Perth-based company has completed 16 acquisitions, including eight in the current financial year.

Today, Threat announced its purchase of Security Alarm Monitoring Service (Sams), which was established in 1996 and currently has 22,115 monitored connections serviced by 218 resellers.

Under the deal, Threat will pay $6.4 million in cash on completion of the sale, with the remainder to be paid 12 months later.

Managing director Demetrios Pynes said the acquisition made strategic sense.

“Sams is a very well-run and systemised operation with a fantastic reputation for customer service. Operationally and culturally it is a great fit for Threat Protect,” he said

“Expanding into South Australia further diversifies our connection base and our stable of resellers.

“It also provides us a much larger distribution channel for new product lines in the future.”

Threat has forecast that Sams will contribute more than $5 million in monitoring revenue annually and has the capacity to increase its connections to 60,000.

In December Threat bought two NSW security monitoring businesses.

Shares in Threat were up 9 per cent at 18 cents each at 1pm AEDT.

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