Alarm Financial Services has provided financing to Alamo Smart Home and Arkansas Protection Services to consolidate existing debt and provide working capital for future growth.

Financial terms of the transactions were not disclosed.

San Rafael, Calif.-based Alarm Financial Services said the financing provides both independently owned security companies with more favorable terms on existing debt while giving them additional capital to support expansion.

“Security companies with strong customer relationships are well-positioned to take advantage of new recurring revenue opportunities in the areas of AI-enabled video and access control,” said Jim Wooster, president of Alarm Financial Services. “We are proud to partner with Alamo Smart Home and Arkansas Protection Services to provide them with the capital that will allow them to take advantage of these new opportunities.”

For San Antonio-based Alamo Smart Home, the financing will support a growth plan that includes expansion into Austin, Houston and Dallas-Fort Worth as well as potential acquisitions.

Alamo President Michael Auerbach said the company plans to establish a presence with technicians and other personnel in each market.

“Organically, we're moving beyond San Antonio into Austin, Houston, and Dallas–Fort Worth — boots on the ground in each metro, not just a phone number with a Texas area code,” Auerbach said.

The capital will help fund technicians, service vehicles, inside sales and customer service support needed to install and service accounts across the four Texas markets, according to Auerbach. Alamo also plans to use the financing to pursue potential acquisitions of contractors and dealers in Texas.

“It also gives us the dry powder to buy,” Auerbach said. “There are good contractors and dealers across Texas ready for a clean exit, and we can close those deals quickly on terms that work for both sides. That's how we scale into larger commercial opportunities, like access control and video and multilocation accounts.”

Alamo Smart Home, which was founded and is headquartered in San Antonio, has offices in Austin and Houston. The company provides residential and commercial security, networking, access control and home automation services.

For Little Rock-based Arkansas Protection Services, the financing will similarly consolidate existing debt and provide additional flexibility for investments and potential acquisitions.

“For us, this financing is about putting APS in a better position for the next stage of growth,” said Adam Prasse, principal at Arkansas Protection Services. “Consolidating our existing debt gives us more flexibility to invest in our people, concentrate on our present projects, and be positioned to pursue strategic acquisition opportunities as they arise.”

Prasse said the financing also provides APS with a capital structure designed to support its growth plans and has set in motion what he described as a more sophisticated approach to recurring revenue growth.

“We’ve got some great opportunities in front of us, and this gives us the capital structure to grow responsibly,” Prasse said.

Arkansas Protection Services has operated in the greater Little Rock area since 1999 and specializes in residential and commercial security, access control and cameras.

Alarm Financial Services has provided loans and advisory services to alarm dealers since 1987. Its services include financing for business growth, debt consolidation, operational expansion and acquisitions.