TULSA, Okla.--(BUSINESS WIRE)--Central Security Group (“CSG”) has announced the acquisition of security and home automation providers, Fort Knox Security Services and SW Security Services, based in Dallas. The deal adds close to 4,000 customers, with $120,000 Recurring Monthly Revenue (“RMR”), and expands CSG’s existing footprint in the Dallas, Houston, San Antonio, and Austin markets.
“The consumer demand in home automation and security services makes this an ideal time to expand our customer base, and we are pleased to reach more home and business owners in this area with our services that increase security, comfort, and convenience,” said Richard Ginsburg, CSG president and CEO. “We also appreciate the diligence of the Fort Knox and SW team in building a solid operation – from which we can launch further growth – and for helping to complete this acquisition. We especially welcome the Fort Knox and SW employees, along with their knowledge, to our team.”
Founded in 1999, CSG is one of the fastest growing security and home automation platforms in the United States. Among CSG’s many assets are a vast dealer network; a state-of-the-art monitoring and customer care center in Tulsa; and branch offices throughout the southern United States.
Consistent with the company’s growth strategy, CSG also has completed a refinancing and expansion of its senior secured credit facilities in the amount of $325 million, including a $50 million revolver. Proceeds from the deal were used to refinance existing debt, pay a dividend to the company’s current equity holders, and for general corporate purposes. Credit Suisse and Deutsche Bank acted as lead arrangers and joint bookrunners.
"Taking advantage of favorable market conditions to reduce interest and covenants, while increasing leverage, is an important milestone in achieving financial flexibility and accelerating our growth," said Ginsburg. "It also will allow us to continually enhance the customer experience, as well as our product offerings, and we appreciate the demonstrated confidence from the banking community.”
About Central Security Group
Central Security Group is the 8th largest residential security monitoring company in the United States. It serves approximately 200,000 customers primarily in the Sunbelt states and has achieved positive net growth every year since its founding in 1999. The company has a network of hundreds of authorized dealers as well as a robust branch network that serves its customers. The company also operates Guardian Security, Oklahoma’s largest security company for 40 years, and maintains a state-of-the-art monitoring and customer service center in Tulsa, Okla. For more information, visit www.centralsecuritygroup.com.