ASG Security US - Experts & Thought Leaders

Joining forces with Protection 1 will extend CCI’s reach to better serve its customer base Protection 1, the largest full-service business and home security company in the U.S., recently announced that it has completed the acquisition of Cam Connections, Inc. (CCI), a full service security systems integrator based in Lakeland, Florida with satellite offices in Davie, Florida and Charlotte, North Carolina. The company specialises in providing tailored security solutions to meet its customers’ specific needs. Increasing customer base This acquisition follows the recent announcement that Apollo Global Management has signed definite agreements to acquire both Protection 1 and ASG Security. Under this new arrangement, Protection 1 will serve as the platform on which Apollo will enter the security market and CCI will further complement the company’s offerings. “We have always looked for strategic acquisitions that can broader or deepen key areas of expertise. We are excited to have CCI join the Protection 1 team. Between our national footprint and their expertise, we will be able to offer more solutions to our combined customers and prospects and build on our strong foundation,” said Timothy J. Whall, Chairman and CEO for Protection 1. “Cam Connections’ business model is based on the same philosophy as Protection 1’s - providing the latest in electronic security solutions to its customers while delivering the highest level of customer service - making them an ideal fit for our organisation.” Joining forces with Protection 1 will extend CCI’s reach to better serve its customer base by leveraging Protection 1’s national footprint. The two companies offer similar technologies including intrusion and life safety systems, access control, CCTV, video analytics and POS monitoring. Founded in 1998, CCI currently employs nearly 60 individuals primarily focused on sales, service and installation of electronic security systems. Their current President and CEO, Robert Bull, will remain with Protection 1 as Vice President-CCI, a division of Protection 1. “This is going to be an amazing partnership,” comments Bull. “Cam Connections has been known as one of the most innovative integration companies in the industry for several years while Protection 1 is an absolute powerhouse when it comes to electronic security solutions. We are going to do great things together.”

The newly created company enables Apollo to generate $500 million annual revenue Protection 1, a leading full-service business and home security company in the United States, recently announced it has signed definitive agreements to be acquired by funds managed by affiliates of Apollo 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. Apollo to enter the security monitoring industry Funds managed by affiliates of Apollo also announced recently 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 recognising 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 known.” Residential and commercial security monitoring “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.” “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,” said Joe Nuccio, President and CEO of ASG Security. “ASG’s reputation, coupled with our financial and operational strength, will play an important role in the overall company expansion and value-creation opportunities.” Financing is being provided by Credit Suisse, Barclays, Deutsche Bank, Jefferies and RBC. Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal adviser to Apollo; Latham & Watkins LLP is acting as legal adviser to Protection 1; and Kirkland & Ellis LLP is acting as legal adviser to ASG Security. Morgan Stanley and Raymond James are acting as financial advisors to Protection 1 and Goldman Sachs is acting as financial advisor to ASG Security.

Hikvision solutions met and exceeded the organisation’s diverse set of security needs Hikvision, the global leader of innovative video surveillance products and solutions, partnered with ASG Security - a leading security dealer and installer in the United States, and their customer Texans Can, an open public charter school, to help provide high-quality education for students who have previously struggled in a high school setting. Hikvision solutions met and exceeded the organisation’s diverse set of security needs, ranging from ensuring the safety of campuses across Texas to protecting the auction site of their sister organisation, Cars for Kids. With a user-friendly product line that offers the superior performance of crystal-clear video, Hikvision solutions allow Texans Can to elevate the security of students, faculty, and visitors. Since 1985, Texans Can has served students aged 14-21 who have been unsuccessful in traditional high schools, providing alternative learning environments in Dallas, San Antonio, Austin, Texas, Houston, and Fort Worth that encourage them to attain their high school diplomas. The campuses are equipped with special resources that include programs for students with learning disabilities and childcare centres for students who have children. Teachers and counselors adopt a hands-on approach to helping their students succeed. “The teachers really know the students, and the students really know the teachers,” elaborated Malcolm Wentworth, COO of Texans Can and Cars for Kids. “We care. With 1,400 students graduating each year, it’s clear that we are using an approach that works.” "Hikvision cameras are the best I’ve ever seen" Texans Can sought the expertise of ASG Security for a cutting edge surveillance solution. After researching camera models across the market, they selected Hikvision equipment due to high value and high image quality, including the DS-2CD2232-I5 3MP EXIR Bullet Network camera and the vandal-proof DS-2CD2132-I 3MP IR Fixed Focal Dome camera, along with 16- and 32-channel NVRs. “We as an integrator have the opportunity to sell any number of different brands, but we chose Hikvision because it’s easy to use, easy to install, very low maintenance, and very high quality,” detailed Fred Harris, Core Commercial Sales Representative for ASG. Also benefiting from Hikvision products is Cars for Kids, a nonprofit organisation that supports Texans Can with the proceeds from vehicle auctions. Their Dallas site boasts 40 Hikvision cameras in two separate buildings that are linked via a wireless bridge and an 8-port PoE switch. Because of the high volume of cash transactions taking place at the facility, it was crucial that the image from the cameras be crisp enough to identify various monetary denominations. Again, the DS-2CD2132-I and the DS-2CD2232-I5 rose to the challenge. “Hikvision cameras are the best I’ve ever seen,” Mr. Wentworth remarked. Chad Dawald, Vice President and General Manager of ASG, added, “When we research a product, we look for something that makes sense to the customer and makes sense to us. We’re thrilled to deliver Hikvision security solutions to Texans Can.” Jeffrey He, President of Hikvision USA, explained why Hikvision is making great strides in the education vertical: “Hikvision’s security products offer a particularly user-friendly and cost-effective solution to organisations who don’t necessarily have extensive resources, but whose students are invaluable assets that deserve the highest calibre of security. It is an honour to provide this security to Texans Can and to be elevated by integrators nationwide.”

Consolidation – a decrease in the number of companies in a market achieved through mergers and acquisitions (M&A) – has been an important trend among manufacturers in the physical security market for many years. More recently, the trend has also appeared to extend to the integrator market. Larger integrators have been buying up other large integrators; in some cases, they have also been buying up smaller, regional integrators to expand their geographic coverage area. We wondered if this week’s Expert Panel Roundtable has noticed the trend. We asked: Has consolidation among security companies shifted to the integrator/installer market? What is the impact?