NEW YORK (Reuters) – Monitronics, an alarm monitoring firm backed by private equity company Abry Partners, is being marketed for sale and two investment banks are advising it, several sources familiar with the matter said.
The business could fetch about $1 billion, one source said, while a second source said it could be worth more than that amount.
Citi (C.N) and boutique investment bank Moelis & Co are advising on the possible sale, two sources said. The sales process is likely to see the business offered to a limited number of potential buyers rather than a wide auction, one of those sources said.
Boston-based Abry invested in Monitronics in 2001, according to its website. Monitronics provides alarm monitoring services for homes and businesses; when home security systems are triggered, Monitronics investigates and contacts emergency services if needed.
Abry is focused on investing in media, communications, business and information services, according to its website.
Abry and Monitronics were not immediately available for comment. Citi and Moelis declined comment.
There has been a spate of mid-sized private equity deals in recent months, particularly secondary buyouts — when private equity firms sell assets to rival buyout firms.
Private equity firms have incentives both to buy and sell right now. Pressure is on to invest billions of dollars raised in 2006-2008 as the end of those funds’ investment periods approach, while funds are also keen to sell or take public existing investments to reward investors such as pension funds who are under pressure because other parts of their investment portfolio may be underwater.
Some funds also face pressure to spend capital raised in the boom and are nervous about the threat of higher taxes.
(Reporting by Megan Davies; Editing by Phil Berlowitz)