24 Feb 2016
Threat Protect spearheads growth
Threat Protect Australia (ASX: TPS) embarks on the next stage of its rapid growth strategy, agreeing to acquire leading security companies in Sydney and Perth.
IRG and AEP both have an established client base comprising corporate and government organisations. The majority of their revenue is contractually committed, providing both earnings transparency and strong underlying relationships which will provide a foundation from which to supply additional security services.
Threat Protect Managing Director Demetrios Pynes said the acquisitions were an outstanding result for the Company.
“We have managed to acquire two businesses with extremely strong market positions, robust financial performances, enviable client bases and superb growth prospects,” Mr Pynes said. “And we have done this at a price which makes them earnings-accretive to Threat Protect from day one.
“IRG and AEP will also provide us with good commercial opportunities to further leverage our existing security assets such as the monitoring centres, where our costs are largely fixed and we have significant capacity to service more clients.
“These factors demonstrate that the bolt-on growth strategy we outlined at the time of our ASX listing last year will deliver substantial growth for our shareholders.
“I have no doubt that there are more opportunities of this nature to be found in what remains a fragmented industry that is ripe for further consolidation.”