about us > interface news > lpm acquisition

interface completes acquisition to become the first security integrator with a private nationwide IP network

—Michael T. Shaw CEO Interface Security Systems Holdings, LLC

Interface Security Systems LLC, one of the nation’s largest providers of electronic security solutions and integrated security systems announced that it has completed a transaction in which it purchased 100% of the stock of Loss Prevention Management Inc., (“LPM”) headquartered in Albuquerque, New Mexico. Details of the transaction are being kept confidential by mutual consent of the parties.

LPM is a leading Managed Network Services and IP Integration Company, combining wide area network expertise with the integration of voice, data, video and physical security applications. LPM manages and monitors its own nationwide high speed IP aggregation network that can deliver secure internet protocol (IP) applications such as credit authorization, video surveillance, point of sale aggregation, IP telephony and access control. LPM is also a significant player in the IP Video Surveillance Market and is currently established in several high growth vertical markets, including the gaming and hospitality industry.

Interface, the 12th largest revenue company on the most recent SDM Top 100 list, provides installation, maintenance and monitoring services to both commercial and residential customers as well as fully integrated intrusion, fire, managed access control and interactive video surveillance systems to a wide range of business customers.

“Our investment in LPM represents a ground breaking and first-to-market strategic combination that positions Interface as a front runner in the “convergence” of physical and logical security technologies that is redefining the role of system integrators in the commercial sector” said Michael Shaw, Chief Executive Officer of Interface. “We see the business landscape changing, with the market for IP based security and building control integration reaching $118 billion and still growing while Managed Network Services is projected to become a $41 billion business by 2009. Other security system integrators are scrambling to form strategic alliances with IP savvy companies in hopes of meeting changing customer demands, meanwhile our company is now uniquely positioned as a single source IP Integrator, capable of delivering a broad range of solutions in this rapidly expanding market.”

The LPM nationwide IP Network will be integrated into Interface’s Secure Operations Center, creating a one-of-a-kind 24/7 security and data management facility that can deliver a secure broadband wide area network nationwide and manage a variety of security and business applications for both single and multi-location customers. “We believe this is a defining move for Interface that will give us a strong competitive advantage in the marketplace.” says Shaw.

LPM CEO Robert Aranda shares Shaw’s excitement. “We’ve created an organization capable of integrating, managing and monitoring IP applications anywhere in North America,” says Aranda. “Our private IP network allows us to exceed the service levels of our competitors who are still subject to the best efforts and security flaws of the public internet. The merger with Interface produces the first national footprint IP enabled security integrator, bringing VoIP, IP Video and Secure Internet Data into the market as a single source provider. We believe our newly combined entity will be the ’benchmark’ for all security providers to follow, as we set the standard to transform the security and communication industry.”

In addition to leading the way in IP convergence, Shaw and Aranda agree that the company will quickly become one of the largest IP video surveillance and security providers in the hospitality and gaming industry. LPM’s Cisco and Microsoft certified engineers combined with Interface’s Center of Excellence engineering resources will set the standard for enterprise level video and access control solutions with a national delivery capability that will be unmatched in the market.

“The merger feels good”, says Aranda, “our management philosophies and operating standards coincide with each other, providing a stable growth environment for our shareholders, employees and customers by adhering to the core values of honesty, integrity and quality.”

Craig Jennings is Vice President and Partner of SunTx Capital Management Corp., general partner to SunTx Capital Partners, LP whose private equity firm sponsors Interface Holdings. Mr. Jennings commented, “We have been following the rapidly increasing market demand for networking and IT integration skills for converged physical security and immediately recognized this transaction with LPM as an opportunity to position Interface for significant and profitable revenue expansion. Interface has nearly tripled in size since we made our initial investment in the company and we view the Interface/LPM combination as the platform of the future to deliver IP based security solutions to a wide range of customers. We commend the Interface management team for their ’thinking out of the box’ approach, setting the stage for the next phase of our growth strategy and for their skill in identifying and structuring this acquisition. Interface is now on the forefront of the convergence trend. We welcome Robert and the LPM Team to the company.”

Bill Polk, Managing Director with CapitalSource Finance LLC, commented that “CapitalSource is pleased to be involved in this very interesting financing transaction. This is a ‘game changing’ strategic event for Interface and may very well have a significant impact on industry practices overall.” CapitalSource arranged financing for the transaction and increased its loan facility commitment to Interface for an extended term to accommodate the company’s future growth objectives.

 

 

Contact Us

Locations

Interface News

Interface Jobs and Career Opportunities

Why Choose Interface?

Sales Contacts and Customer Specials

Pay Your Bill Online

Site Map

home | secure operations center | customer care center