Apollo Affiliated Funds Enter Security Monitoring
Sector with Simultaneous Acquisitions of Protection 1 and ASG Security
Combined Company Creates Industry Leader with Substantial Scale
Transaction Provides Protection 1 with Unparalleled Access to Capital,
Significant Opportunities for Growth
CHICAGO - May 19, 2015 -
Protection 1, a leading full-service business
and home security company in the United States, today announced it has signed
definitive agreements to be acquired by funds managed by affiliates of
Global Management, LLC (together with its consolidated subsidiaries, "Apollo").
By partnering with Apollo, one of the world's largest alternative investment
managers, Protection 1 is now even better positioned to command a greater share
of the $46 billion security monitoring industry through organic growth and
strategic acquisitions, both of which have been core to the company's solid
growth over the past five years.
"As Apollo enters the security space, ASG Security is excited to be a part of
creating a new platform that is well-positioned to become a significant leader
in the industry"
Funds managed by affiliates of Apollo also announced today the concurrent
signing of definitive agreements to acquire Maryland-based
ASG Security, which
will be combined with Protection 1. The newly created company, which will
continue to operate under the Protection 1 brand, enables Apollo to enter the
security monitoring industry with a market leader generating a combined $40
million in monthly recurring revenue and total annual revenue well in excess of
$500 million. Terms of the transactions, which are expected to close in
mid-2015, were not disclosed.
Protection 1 and ASG Security will join forces under the leadership of
Protection 1's Chairman and Chief Executive Officer Timothy J. Whall.
"Apollo is universally respected for recognizing investment opportunities where
it can take a lead position and then work collaboratively with the management
teams to achieve the greatest potential for the business. With Apollo's style of
investing, as well as their access to capital, we know this relationship is a
great match for Protection 1," said Whall. "At the same time, Protection 1 is
coming together with ASG Security, which immediately strengthens our market
leading position and creates additional breadth and depth in our operations. ASG
has a strong reputation for operational excellence and together our companies
will continue to focus on the outstanding customer service for which we are both
"Apollo is delighted to be partnering with Tim Whall and his team to combine two
strong businesses and create the industry leading platform in both residential
and commercial security monitoring," said Marc Becker, Senior Partner at Apollo.
"Protection 1 is one of the strongest companies in the industry, with a national
footprint, diverse sales channels and an experienced management team with a
history of delivering strong financial results while being laser-focused on
customer service. We see further opportunity for growth in the industry, and
with the greater scale of a combined Protection 1 with ASG, the new company is
well-positioned to succeed in a business that we believe offers very compelling
expansion and value-creation opportunities."
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