Apollo Global Management Llc (APO.N) is in talks to buy ASG Security and combine it with another home security company it is acquiring, Protection 1, valuing them collectively at about $2 billion, people familiar with the matter said on Monday.
Final bids for ASG Security are due on Monday, the sources said. Reuters reported in February that Apollo was in the lead to acquire Protection 1 from buyout firm GTCR Llc for about $1.5 billion.
The deal has been finalized, contingent upon Apollo also clinching a deal for ASG, the people said.
It was not clear if Apollo faced any competition for ASG Security. The sources asked not to be identified because the negotiations are confidential.
Representatives for Protection 1, Apollo, GTCR and ASG Security did not immediately respond to requests for comment.
Beltsville, Maryland-based ASG was acquired by Parthenon Capital in 2007. At the time it was the 11th largest security alarm monitoring business in the United States, according to Parthenon’s website.
The potential deal underscored private equity’s love affair with the security sector. Blackstone Group LP (BX.N) acquired Protection 1 competitor Vivint Inc for more than $2 billion in November 2012 and took its residential solar panel unit, Vivint Solar Inc (VSLR.N), public in September 2014.
Protection 1 has its own fledgling solar panel business. It announced last month its Brite Energy unit had partnered with MySolar IX LLC, a joint venture of Morgan Stanley (MS.N) and Main Street Power Co, to expand its rooftop power systems installation program. Brite raised more than $250 million in financing from GTCR and its partners.
The U.S. security services market is dominated by Tyco Integrated Security Llc (TYC.N) on the business security management side, and ADT Corp (ADT.N) the residential security side.
Romeoville, Illinois-based Protection 1 provides electronic security alarm monitoring services for residential and commercial markets. They include burglary and fire protection, access control, video surveillance and maintenance.
GTCR took Protection 1 private in 2010 for $828 million.