Pinnacle Security, an Orem, Utah-based provider of residential and commercial security systems, has agreed to acquire the sales force and technical department of Provo, Utah-based Icon Security. No financial terms were disclosed. Existing Pinnacle backer Golden Gate Capital is helping to finance the transaction.
Pinnacle Security, a leading provider of residential and commercial security systems, and its equity partner, Golden Gate Capital, a San Francisco-based private equity firm with $9 billion under management, today announced that they will add the sales force and technical department of Icon Security, a Provo, Utah-based provider of residential and commercial security systems, to Pinnacle’s existing sales and technical teams.
For Pinnacle, this is another in a series of important recent developments that began in May 2008 with the announcement of a partnership with Golden Gate Capital. Then, last month, the company announced the closing of a $150 million senior debt facility with LaSalle / Bank of America and Wells Fargo Foothill that allows Pinnacle to maintain and service the customer relationships it creates through its sales force.
“The addition of the Icon sales force and technical department will dramatically increase our growth rate and add further momentum to our business,” said Christopher B. Munday, CEO of Pinnacle. “This is another important step in our long-term growth plan to become a full-service, international security company.”
Prescott Ashe, a managing director of Golden Gate Capital, added, “This is exactly the type of opportunity we were looking for when we partnered with Pinnacle in May. At Golden Gate Capital we currently have over $5 billion of capital available for identifying and acting on exciting opportunities like this one that help our partners differentiate themselves from their peers and become leaders in their industries.”
“Icon is very excited to partner with Golden Gate Capital and Pinnacle Security,” said Jake Taylor, Icon’s Director of Recruiting. “This relationship will help facilitate our growth as well as accomplish our goals as we look to the future. We are excited to work side by side and realize significant synergies as we combine our talent and leadership to become one of the largest home security providers in the nation.”
Ray Quinney & Nebeker acted as legal advisor to Icon and its management. Kirkland & Ellis provided legal advice to Pinnacle Security and Golden Gate Capital.
Pinnacle is a leading provider of residential and commercial security systems, focused primarily on direct sales. Pinnacle has sales offices in major metropolitan areas throughout the United States and is expanding internationally. Pinnacle is headquartered in Orem, Utah, where it operates its primary operational and recruiting facility. Pinnacle was founded in 2001. For more information, please visit http://www.pinnsec.com.
Icon Security is also a leading provider of residential and commercial security systems, focused primarily on direct sales. Icon is headquartered in Provo, Utah and was founded in 2000. For more information, please visit http://www.iconhomesecurity.com.
About Golden Gate Capital
Golden Gate Capital is a San Francisco-based private equity investment firm with approximately $9.0 billion of capital under management. Golden Gate is dedicated to partnering with world-class management teams to invest in change-intensive, growth businesses. The firm targets investments where there is a demonstrable opportunity to significantly enhance a company’s value. The principals of Golden Gate have a long and successful history of investing with management partners across a wide range of industries and transaction types, including leveraged buyouts, recapitalizations, corporate divestitures and spin-offs, build-ups and venture stage investing.
Pinnacle Security: http://www.pinnsec.com
Icon Security: http://www.iconhomesecurity.com
Golden Gate: http://www.goldengatecap.com