SAN ANTONIO — Argyle Security Inc. continued its recent merger and acquisition activity with the $14 million purchase of three security companies.
Wisconsin-based Com-Tec Security, which designs and manufactures electronic security and communications systems for the detention and commercial markets, will merge with Argyle Security, officials say.
San Antonio-based ISI Security Group — acquired by Argyle in July — will operate Orange, Calif. -based Peterson Detention, which manufactures furniture and windows for the detention industry, and Baton Rouge, La. -based FireQuest, a commercial fire alarm and suppression systems firm.
Sam Youngblood, co-founder and chief executive officer of ISI Security, discussed his company’s recent merger with Argyle and the group’s overall strategy in a Q&A article in the January/February issue of Correctional News.
“One of our primary focuses from an acquisition standpoint is to complete the national footprint of our commercial portion of our business,” Youngblood says.
ISI provides security products for correctional facilities through its ISI Detention Contracting Group and Metroplex Control Systems divisions.
Developing a presence across market sectors will prove beneficial for the development of technology as the group moves practices and ideas from one industry to another, including corrections, Youngblood says.
Officials expect the vertical integration of ISI and Peterson Detention, which have an established business relationship, to enhance the group’s entry into the California market.
The acquisition of Com-Tec, a longtime competitor of ISI Security’s MCS-Detention division, will generate significant operational synergies for both companies through the exchange of circuitry and automated programming technologies, officials say.
Metroplex Control Systems’ OneLink van allows MCS programmers to perform system programming and maintenance on site when no other remote communications are available, officials say.
OneLink enhances troubleshooting and improves client service during system installation, maintenance and upgrade by enabling programmers to exert an on-site presence through remote access, while utilizing the group’s full array of technical resources, says David Tidwell of ISI Detention Contracting Group.
Argyle revised its 2008 revenue projections upward to between $115 million and $142 million in the wake of the acquisitions. All three companies will maintain their brands and current staffing configuration in the short term, officials say.