Western Australian security company Threat Protect Australia (ASX:TPS), formerly East Africa Resources, has completed its second acquisition in two weeks as part of a rapid growth strategy.
The company has added 540 new clients and another A$350,000 per annum in earnings with the acquisition of Hillstone Security Monitoring.
The deal, which will be earnings accretive immediately, is Threat Protect’s second acquisition since joining the ASX earlier this month in a backdoor listing via East Africa. The company’s first acquisition was a $2.5 million purchase of Monitoring Excellence, a security service provider with more than 10,000 clients and annual revenue of $1.8 million.
The Monitoring Excellence deal effectively doubled Threat Protect’s client base, which now stands at about 20,000.
Growing the Threat Protect client base is part of a strategy to increase profits by attaching more commercial agreements to an existing, fixed-cost monitoring centre.
The Hillstone deal also represents a strategic emphasis on customers owning new homes, a fast-growing segment of the security industry.
Hillstone’s parent company Hillstone Building Technologies installs security and smart technologies in around 400 new homes a year.
