SYOSSET, N.Y.—AFA Protective Systems Inc., a super regional alarm company based here, has acquired the alarm business assets of Pro-Tech Security Ltd., effective Nov. 1.
Among the assets purchased are approximately 400 contracts representing more than $10,000 in RMR, primarily consisting of commercial and residential alarm monitoring services in the greater Boston marketplace, according to AFA Protective Systems CEO Robert Kleinman.
“We had worked with the owner of the company in the past, and we worked closely on a deal where AFA would purchase his accounts as part of a nice fold-in,” Kleinman told Security Systems News. “He is also joining us on a part-time basis, which will help us with retention of these accounts.”
AFA Protective Systems has more than 40,000 accounts overall, the majority of which are commercial. The additional accounts from Pro-Tech Security provide a nice influx of recurring revenue in the New England region, according to Kleinman. “Because it is such a straight fold in, it really drops right to the bottom line so it should generate profits for us right away,” he said.
Overall, AFA’s RMR is between $2.5 and $2.6 million. “Overall, we are up about 2- to 3 percent in RMR to date and expect that to continue to grow as we get closer to the end of the year,” said Kleinman. “Going forward, our goal is to concentrate our resources more on the recurring revenue-creation portion of the business and less on that portion of the outright sales model which doesn’t bring recurring revenue with it.”
Established in 1873, AFA is the oldest continuously operating alarm company in the United States, with offices throughout the East Coast and with service capability throughout the country through its National Accounts Division.Topic: Commercial and Systems Integrators Tags: AFA Protective Systems, Pro-Tech Security, Robert Kleinman