With steady acquisitions, a growing direct-to-consumer presence and technology rapidly opening new markets, Newtown Square's Alarm Capital Alliance
is experiencing fast growth and predicting more ahead.
The company made its largest-ever acquisition last month, buying Hawk Security Services of Fort Worth, Texas, adding 27,000 customers and 130 employees. Nationwide, the company now has 170,000 customers and about 430 employees.
The most significant indicator of growth in the home security industry is "RMR" or recurring monthly revenue. In 2012, when Keystone Edge last visited Alarm Capital
, RMR stood at $3.7 million; now it’s at $6 million, with the Hawk acquisition accounting for $900,000.
Acquisitions drive Alarm Capital’s business, and although 2013 proved to be less robust than expected, CEO Amy Kothari says 2014 appears strong with "more acquisition opportunities in our pipeline." She ascribes much of the growth to a rapid embrace of smart home and personal security technology. The company gets 100 to 150 calls a month from customers interested in controlling their thermostats, locks, lights, etc. from remote locations or for personal security.
"It’s no longer about protection, it’s about connection," says Kothari, and security companies are quickly needing to decide whether they want to invest in technology or sell to companies like Alarm Capital.
In Southeastern Pennsylvania and several other markets, the company is also growing its direct-to-consumer presence as My Alarm Center
, planning TV and other high-visibility advertising and branding.
The company moved to an expanded home office in Newtown Square in late 2012, growing to about 32,000 square feet with ample room to grow. It will need it. Already at about 175 employees (up 50 from 2012), Kothari anticipates continuing to add 15 to 20 positions every year.
Source: Amy Kothari, Alarm Capital Alliance
Writer: Elise Vider