Threat Protect Australia Ltd (ASX:TPS) has completed its largest acquisition to date, that of Security Alarm Monitoring Service Pty Ltd (SAMS) at an agreed price of about $8 million.
The acquisition enhances Threat Protect’s national presence, adding a third control room to the business.
It also adds security monitoring across a further 218 resellers servicing more than 22,100 residential and commercial customers.
Key step in growth strategy
Completion of the acquisition is a key step in the continued execution of Threat Protect’s growth strategy.
It is expected to be immediately earnings per share accretive and to positively contribute to the company’s revenue and earnings.
The agreed acquisition price comprises $6.4 million in cash with the remainder to be paid in cash 12-months after completion subject to a reconciliation of working capital and invoiced revenue.
Expansion into South Australia
Managing director Demetrios Pynes said: “The SAMS acquisition significantly advances our growth strategy.
“Expanding our operations 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.”
Threat Protect provides monitored security solutions that ensure the safety of Australian homes and businesses.
The company has the highest security accreditation possible to achieve in Australia and uses only state-of-the-art technology and equipment.