Protection One, the third largest provider of electronic security monitoring in the country, announced Monday that it has entered into an agreement to be purchased by private equity firm GTCR in a deal valued at over $800 million.
According to a statement issued by Protection One, GTCR will acquire the company’s shares next month for $15.50 per share in cash, a 13 percent premium over the firm’s closing stock price of $13.76 on April 23, 2010.
The deal has received support from Protection One’s board of directors, as well as its majority shareholders Quadrangle Group LLC and Monarch Capital Partners, which together own 70 percent of the company’s outstanding shares.
Protection One monitors over 1 million customers, has 60 branch offices, and has five monitoring centers in place (located in New Jersey, Kansas, Texas, California and Florida.). In a previous interview with SIW, Protection One President and CEO Richard Ginsburg said the firm has recurring monthly revenues (RMR) of over $25 million, and projected annualized revenues of $370 million, a number which is based on the company's Q3 2009 revenues. The company announced in January that it was considering a possible sale.