Mace Security International announced it signed a letter of intent to acquire a wholesale security monitoring company. Mace anticipates that it will sign a definitive purchase agreement within 30 days, and plans to consummate the transaction within 30 days after signing the definitive purchase agreement.
The wholesale monitoring company has a UL-listed monitoring center that maintains more than 30,000 accounts. Mace will not disclose the name of the company until the definitive purchase agreement is signed.
"We are very excited about this future acquisition,” said Dennis Raefield, CEO and President of Mace Security International. “As Mace previously announced, we are focused on revenue growth in our Security Segment. I announced a strategy in December 2008 that included Mace's goal to purchase a wholesale security monitoring company to complement our surveillance product line. This allows Mace's sales force to offer a new product to its professional dealers, and allows the company to generate recurring monthly revenue from the monitoring service. We believe that offering a traditional third party monitoring service, plus advanced future remote-managed services, will increase our dealer loyalty and strengthen our position in the marketplace.”
The letter intent is subject to customary closing conditions. Although there can be no assurance that this acquisition will ultimately close, the company is optimistic that the conditions will be satisfied.