Imperial Capital, LLC acted as exclusive financial advisor to Protect America, Inc. in connection with the sale of the Company's assets to Monitronics International, Inc. Brinks Home Security will take ownership of approximately 114,000 alarm monitoring contracts totaling approximately $4.6 million in recurring monthly revenue (RMR). Key terms of the transaction include a $15.0 million upfront payment and a 50 month earnout structure. For the first six months following the closing date (the "Initial Earnout Period"), Brinks Home Security will pay the seller a $5.00 monthly earnout payment per active account. For the remaining forty-four months immediately following the Initial Earnout Period, Brinks Home Security will pay the seller a $25.00 monthly earnout payment per active account.
"This is a great outcome for all parties involved, as this unique transaction structure aligns both the seller's and the buyer's interest. Attrition risk is mitigated, and both parties stand to benefit from Brinks Home Security's industry-leading customer service infrastructure," said John E. Mack III, Executive Vice President and Co-Head of Investment Banking at Imperial Capital.
Founded in 1992, Protect America is the founder and pioneer of the DIY ("do-it-yourself") security alarm monitoring market. The Company provides a comprehensive offering of home security, video, life safety and smart-home automation products providing complete perimeter protection and life safety features. Protect America's existing customer base will continue to be served by the Protect America team over the short term enabling a seamless transition. "The innovative structure gives the Protect America team confidence in the ongoing support of our customers by the Brinks Home Security organization," said Scott Fleming, CEO of Protect America.
About Imperial Capital, LLC
Imperial Capital, LLC is a full-service investment bank offering a uniquely integrated platform of comprehensive services to institutional investors and middle market companies. We offer sophisticated sales and trading services to institutional investors and a wide range of investment banking advisory, capital markets and restructuring services to middle market corporate clients. Paired with our proprietary research and sales & trading desk analysis, we provide investment analysis across an issuer's capital structure, including bank loans, debt securities, the hybrid/bank capital marketplace (through our ELP Framework), post-reorganization equities, special situations claims and listed and unlisted equities. Our comprehensive and integrated service platform, expertise across the global capital structure, and deep industry sector knowledge enable us to provide clients with research driven ideas, superior advisory services, and trade execution. We are quick to identify opportunities under any market conditions and we have a proven track record of offering creative, proprietary solutions to our clients. Imperial Capital, LLC has three principal businesses: Investment Banking, Institutional Sales & Trading and Institutional Research. More information about Imperial Capital, LLC can be found at www.imperialcapital.com.
