Listed company acquires South Australian security services business for $8m

Listed company acquires South Australian security services business for $8m

Threat Protect Australia Limited (TPA) (ASX: TPS) has acquired security services business Security Alarm Monitoring Service Pty Ltd (SAMS) for $8 million.

SAMS is a company which currently has 22,115 connections and 218 resellers, and is anticipated to contribute in excess of $5 million in revenue to TPA annually.

SAMS, based in Port Lincoln, South Australia, services residential and commercial clients predominantly in the state.

The acquisition will be fully funded by TPA's debt facility with First Samuel Limited and is expected to be immediately earnings per share accretive.

SAMS owns and operates a purpose-built monitoring centre, with a total capacity of 60,000 connections, and is accredited by Australian Security Industry Association Limited as "Grade A1".

For TPA, the acquisition will grow the listed company's national presence, adding in excess of $400,000 in recurring monthly revenue at current levels; growing TPA's total monitoring revenue base by approximately 65 per cent.

The company expects the acquisition to positively contribute to TPA's second half FY18 revenue and earnings.

TPA's managing director, Demetrios Pynes, says the acquisition is part of the group's national growth strategy.

"SAMS is a very well-run and systemised operation with a fantastic reputation for customer service," says Pynes.

"Operationally and culturally it is a great fit for Threat Protect."

"Expanding into South Australia further diversifies our connection base and our stable of resellers. It also provides us a much larger distribution channel for new product lines in the future."

TPA's acquisition is part of the group's strategy to grow nationally, tap into the $3.6 billion industry, and consolidate the highly fragmented sector which has around 6,500 businesses nationally.

The company has now completed 16 acquisitions since listing on the ASX in 2015, including eight monitoring acquisitions in FY18, and is in the process of conducting due diligence on several other companies currently.

Shares in TPA are up 9.09 per cent to $0.18 per share at 11.13am AEDT.
 

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Four ways businesses can use artificial intelligence to triumph in 2022
Partner Content
The last two years have delivered major disruption to the technology industry and broad...
PROS
Advertisement

Related Stories

QLD Premier confirms borders to reopen four days early

QLD Premier confirms borders to reopen four days early

With Queensland health authorities expecting the 80 per cent double...

Cyber weekend sales make November the biggest month in Australian online shopping history

Cyber weekend sales make November the biggest month in Australian online shopping history

November was the biggest month in Australian online shopping histor...

Aussie Broadband launches $344m bid for Over The Wire

Aussie Broadband launches $344m bid for Over The Wire

One of Brisbane’s Top Companies Over The Wire (ASX: OTW) has ...

Afterpay postpones vote on takeover as Square takes on a new name

Afterpay postpones vote on takeover as Square takes on a new name

Delays from the Bank of Spain in approving a multi-billion takeover...