12.28.20 – SSI – Dallas
Brinks says it will retain the majority of Select Security’s commercial sales, field technicians and customer service employees, as well as certain office locations.
Monitronics Int’l, dba Brinks Home Security, announces the acquisition of approximately 30,000 residential and small business and 8,000 large commercial alarm monitoring contracts from Select Security, totaling approximately $2.0 million in recurring monthly revenue (RMR).
Brinks Home Security will take ownership of the alarm monitoring contracts through an earn out structure that includes a $10 million upfront payment and a 50-month earn out period.
Under terms of the transaction, the seller will transfer title to all accounts to a Special Purpose Vehicle (SPV). Title to the Accounts will be transferred from the SPV to Brinks Home Security periodically during the earn out period with title to all accounts transferred by month 50.
In addition to the accounts, Brinks Home Security is retaining the majority of Select Security’s commercial sales, field technicians and customer service employees, as well as certain office locations.
For 90 days following close, the seller will provide certain transition services to Brinks Home Security, and following the transition period, Brinks Home Security will manage all aspects of the customer experience, according to an announcement.
“We are excited about the value this transaction creates and its alignment with our core objective of ‘creating profitable accounts at scale and holding for life’, while also opening the door for similar opportunities in the future,” says Brinks Home Security CEO William Niles. “I am also thrilled to welcome the Select Security sales organization, technicians and customer care employees to the Brinks Home Security family. I look forward to integrating them into our customer-centric culture that serves as the guiding force behind all key decisions in our organization. We are also excited to expand our footprint into the large commercial security segment and to bring Brinks Home Security’s high-touch customer service to the entire Select Security customer base.”
Lancaster, Pa.-based Select Security was launched in 2003 by SSI Hall of Famer Pat Egan. The company has won numerous SSI SAMMY Awards over the years, including Installer of the Year in 2014.
Imperial Capital served as the exclusive financial advisor to Brinks Home Security in the transaction.