ICV Partners’ SAFE Security buys over 16,000 accounts from Alarm Funding

SAFE Security, a portfolio company of ICV Partners, said Monday that it has acquired over 16,000 CastleRock Security residential and commercial alarm monitoring subscriber accounts from Alarm Funding Associates. No financial terms were disclosed. Bank of America, U.S. Bank, Bank of Montreal, Madison Capital and OneWest Bank provided debt financing to SAFE Security for the transaction. Headquartered in San Ramon, Calif., SAFE Security is a security alarm company.


NEW YORK, November 11, 2013 – ICV Partners (ICV), a leading investment firm focused on lower middle market companies, announced today that its portfolio company SAFE Security has purchased over 16,000 CastleRock Security residential and commercial alarm monitoring subscriber accounts from Alarm Funding Associates, a security funding and acquisition company. The newly purchased accounts represent $650,000 of Recurring Monthly Revenue (RMR) and help SAFE expand its footprint throughout the United States and Canada.
“We continue to identify high quality accounts that are accretive value additions to the SAFE portfolio,” said Paul Sargenti, President and CEO of SAFE Security. “With this acquisition, we have more than doubled SAFE’s account base since 2012, which significantly strengthens our size and geographic reach in the market. Our goal now is to successfully integrate these new accounts into the SAFE family with minimal disruption and provide the highest standard in security services to these new subscribers.”
Cory D. Mims, a Managing Director of ICV, said, “SAFE has completed several acquisitions that complement its organic growth and we continue to benefit from a robust pipeline of high quality companies from which to select quality accounts. We are very pleased with the continued growth of SAFE. ICV will continue to support the management team as they build the company into a leading provider of security alarm monitoring services.”
Earlier this year, SAFE Security purchased 35,000 security alarm monitoring subscriber accounts from Utah-based Pinnacle Security, representing approximately $1.6 million of RMR. Additionally, the company successfully completed the refinancing of its senior credit facility with a new $130 million senior credit facility led by Bank of America to provide additional borrowing capacity for acquisitions. In addition to Bank of America, debt financing for the Alarm Funding transaction included U.S. Bank, Bank of Montreal, Madison Capital, and OneWest Bank.
About SAFE Security
SAFE Security® ranks among the largest security alarm companies in the United States, with operations in 50 states, Puerto Rico, and Canada. SAFE Security (Security Alarm Financing Enterprise, L.P.), headquartered in San Ramon, CA is one of the nation’s leading security alarm companies engaged in the business of purchasing, financing and servicing residential and commercial security alarm monitoring contracts. SAFE Security actively markets and installs alarm systems and monitoring to homeowners across the nation in addition to growing a robust dealer account acquisition program. For more information, visit the company’s website at www.safesecurity.com.
About ICV Partners
Founded in 1998, ICV Partners is a leading private investment firm that supports management leaders of strong companies at the lower end of the middle market. The principals of ICV have crafted a strong track record of helping companies improve performance over the long term and across a variety of industries. ICV seeks to make control investments in market leading businesses with $25 million to $250 million in revenue. Additional information is available at www.icvpartners.com.