Threat Protect eyes $6m acquisition

Security services provider Threat Protect Australia is considering a move to acquire assets from east coast player Apollo Security for about $6 million, after tying up an option for its two business units.

The two units are Grade One Security in NSW and Queensland Security Rangers, with Belmont-based Threat Protect saying the move would double its annual security monitoring revenue.

A new Sydney control room would also provide redundancy for its existing Perth operation, Threat Protect said.

It follows the company’s acquisition of Integral Risk Group in NSW early last year.

The option will expire at the end of March, with a fee of $150,000; the deal will be funded in two tranches, with an initial tranche of $3.7 million, funded by a recent convertible note issue.

Threat Protect managing director Demetrios Pynes said the company had a growth-through-acquisition strategy.

“The business would enable us to capitalise on our previous expansion into NSW providing a control room presence in Sydney and bolting on significant new monitoring revenue streams,” he said.

“Furthermore, the acquisition offers cost and diversification benefits, and positions us to continue with our acquisition plans.”

Shares in Threat Protect were 11.6 per cent higher at 2.9 cents each at the time of writing.