Topspin LBO has formed GHS Interactive Security to acquire LifeLine Security and Automation, a California-based security alarm dealer. LifeLine uses a door-to-door year-round sales model to sell security alarm systems to homeowners.
Topspin LBO today announced that it has formed GHS Interactive Security, LLC (“GHS” or the “Company”) to acquire LifeLine Security and Automation, Inc. (“LifeLine”), a rapidly growing, California-based security alarm dealer. LifeLine uses a door-to-door year-round sales model to sell security alarm systems to homeowners. Moving forward, GHS will employ LifeLine to originate new accounts, and subsequently retain and service the alarm monitoring contracts.
Topspin completed the acquisition with financing from Barclays Private Credit Partners Fund, L.P. (“BPCP”) which provides junior and senior debt and equity co-investment to small- and mid-sized companies. BPCP also invested alongside Topspin’s equity in the transaction.
Industry veteran Steve Baker, who previously served in executive roles at ADT, Monitronics and Westec, will serve as CEO of GHS and lead a highly respected management team. Mr. Baker stated, “LifeLine is an ultra-high-quality account originator with deep roots in its geographic markets. We are excited to have Topspin as our equity partner in the deal. Their expertise in the security alarm industry will be helpful as we expand in existing markets as well as adjacent geographic markets.”
Steve Lebowitz, Managing Director at Topspin LBO, said, “After reviewing dozens of alarm monitoring deals since we sold Coastal Security in 2005, we found the GHS/LifeLine opportunity and are very enthusiastic about it. Lifeline has historically generated a high level of recurring monthly revenue at an unusually low cost. Moreover, the management team is high quality and well-regarded in the industry.”
Michael Barnes, founder of the leading security alarm industry investment bank Barnes and Associates, assisted in structuring the deal and advised Topspin. Mr. Barnes stated, “Having GHS’s growth engine in place provides a much more certain and lower-risk mechanism for generating investor returns than most models.”
Topspin LBO is a Long Island, NY-based private equity fund that makes control investments in profitable and established lower middle-market businesses. The firm often invests in sectors such as consumer products, business services, food/beverage, retail, media, niche manufacturing and security. The team at Topspin LBO has considerable operational expertise and has partnered with management teams in building businesses of varying stages and sizes, both at Topspin as well as prior firms.
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Topspin Partners LBO, LP
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