Monitronics International Inc, a primary operating subsidiary of Ascent Capital Group Inc, announced today that it has signed a definitive agreement for the acquisition of Security Networks LLC. The said acquisition would result to having a leading home security solutions and an expanded footprint with enhanced prospects for company growth.
Security Networks was founded in 2000. The company provided security monitoring system services to around 195,000 commercial and residential customers. This made the company the 14th biggest alarm monitoring company providing services to residential clients. Security Networks affiliated with exclusive dealers to sell and install its security system products.
The transaction between the two companies was valued at US$487.5 million in cash. Newly issued shares of 253,333 from Ascent Series A common stock was also part of the agreement that valued up to US$20 million. The price for the acquisition would be subject to adjustments at the completion of the transaction based upon Security Networks' monthly recurring revenue.
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