SOURCE: Pinnacle Security
OREM, UT--(Marketwire - Oct 26, 2012) - Pinnacle Security, a leader in the residential security industry, today announced an alliance with Monitronics, one of the nation's fastest growing home security alarm monitoring companies, via a sale of a portion of its existing account portfolio and an agreement for future account sales.
"Pinnacle has found incredible success generating industry leading volumes of high quality accounts even in a challenging economy," said Jared Chappell, President and Founder of Pinnacle Security. "With this relationship, Pinnacle is increasing its operating flexibility and significantly lowering its debt load. At a time when competitors are taking on additional risk and increasing their debt, this improved capital position represents the best direction for Pinnacle and allows the company to pursue significant new growth opportunities. We are pleased to join arms with Monitronics, a top-notch, strong, and fast growing security company. This favorable transaction improves our already strong foundation and provides value and commitment to the communities we serve."
The agreement will enable growth for both companies, with Pinnacle as a proven, powerful sales engine and Monitronics servicing the new accounts. The agreement to purchase some existing accounts is unique from most account transactions as there is no residual service obligation, no holdback and no account guarantees. These are all built into a 33x net multiple.
"This strategic relationship with Pinnacle Security will be an asset to Monitronics, driving sales and revenue," said Mike Haislip President & CEO of Monitronics Security. "Pinnacle will offer us additional high quality customer accounts and a strong, committed sales team that will provide both companies with opportunities to increase market share. We are excited to announce this news."
"We are proud to form this alliance with Monitronics," said Steve Zolman, President of Sales and Founder of Pinnacle Security. "This relationship creates significant positive momentum for both brands. We are excited for our bright future."
For more information about Pinnacle Security, please visit us at http://pinnaclesecurity.com/aboutcompany.php
About Pinnacle Security
Pinnacle Security is an industry leader in providing quality residential and commercial security solutions to help individuals realize the peace-of-mind that comes from protecting the things that matter most. Pinnacle is headquartered in Orem, Utah and has sales operations throughout North America. For more information, please visit www.pinnaclesecurity.com