ABS Capital Partners has sponsored a buyout of Alarm.com from MicroStrategy. No financial terms were disclosed for the deal, which was done in partnership with Alarm.com CEO Steve Trundle. Alarm.com is a McLean, Va.-based provider of wireless and web-enabled security and monitoring technology for residential and commercial customers.
Alarm.com, the leading provider of wireless and web-enabled security and monitoring technology for residential and commercial customers, announced today that a group of investors led by ABS Capital in partnership with Alarm.com’s CEO have completed the acquisition of all interests in Alarm.com held by its prior majority owner, MicroStrategy. ABS Capital Partners is a leading later-stage growth company investor. Egis Capital, a leading private equity firm focused on the security and homeland defense industries also participated in the acquisition. Ralph Terkowitz and Bobby Goswami, General Partners at ABS Capital, and Robert Chefitz, a Partner at Egis, will join Steve Trundle, CEO of Alarm.com, on the Company’s board of directors as a result of the transaction.
“We are very pleased to complete this initiative in a challenging economic environment, and extremely satisfied with the quality of the new capital partners we are bringing into the Alarm.com business. Alarm.com is now in an optimal position to ensure that our security industry partners and customers will continue to have the most advanced and cost effective security and monitoring technology solutions,” said Trundle.
Alarm.com provides wireless and web-enabled security system technology to residential and commercial customers across the U.S.A. and Canada. In 2003, Alarm.com was the first company to launch an all-digital wireless signaling solution with remote PDA and web-based monitoring and always-on activity reporting, and today remains the leader in the space that it defined.
Unlike most security systems, Alarm.com is wireless and doesn’t require a phone line or Internet connection to communicate signals to the monitoring center. Alarm.com has redefined security monitoring services by enabling sophisticated interactive custom-threat alerting and remote control capabilities via email, voice, PDA and web interfaces, all of which significantly increase the value proposition offered by a traditional security system.
“With traditional alarm systems, customers might only receive calls from the monitoring station when the alarm goes off and in most cases, the call is for a false alarm. With our Dealers and partners, Alarm.com gives customers the ability to know if their housekeeper went into the medicine cabinet, if they left their garage door open when they went to work, if their children got home late from school, if their ‘dog walker’ never showed up, if their store employee opened the store late, and virtually anything else that they choose to define as important to them,” Trundle explained.
“We have known Alarm.com and have been impressed by its solid growth and marketplace recognition,” said Ralph Terkowitz, General Partner at ABS Capital Partners. “The firm’s wireless approach enables Alarm.com to address the rapidly increasing number of homes which no longer use land-based analog phone lines, while their remote interactive services improve the security system’s fundamental value proposition.”
Alarm.com Incorporated provides wireless and web-enabled security and activity monitoring technology to residential and commercial customers throughout the United States and Canada. Alarm.com’s Operations Center processes over 25 Million security events every month, reported by Alarm.com systems that are used to monitor and protect houses, vacation properties, apartments, professional offices, restaurants, retail chains, model homes, boats, trailers, data centers, and more. Alarm.com-enabled security systems are offered through a network of over 800 licensed Security Dealers. Alarm.com technology is compatible with GE Security equipment and has been tested by ETL to comply with UL 985, UL 1023, and UL 1635 (ULC S545 and ULC 1023 in Canada) for residential security installations. The company is headquartered in McLean, VA, a suburb of Washington, DC.
About ABS Capital Partners
Founded in 1990, ABS Capital Partners has established a strong track record for investing in later-stage growth companies. With $1.5 billion under management, ABS Capital helps companies choose the growth initiatives that build the greatest long-term value. ABS Capital has partnered with numerous portfolio companies to achieve successful outcomes, including over 40 initial public offerings and acquisitions by market leaders like CBS Corporation, EMC Corporation, LabCorp and Pitney Bowes Inc. For more information, please visit www.abscapital.com.