GTCR Golder Rauner has agreed to acquire Protection One (NASDAQ: PONE), a security services and alarm provider, for $392 million in a public-to-private deal. Including the refinancing of the company's existing debt, the deal is valued at $828 million. GTCR will soon commence a tender offer of $15.50 per Protection One share, a 13% premium over last week's closing price. JP Morgan Chase, Barclays Capital and TCW/Crescent Mezzanine have committed to providing the debt financing. Quadrangle Group, which acquired a stake in Protection One through a series of transactions, has agreed to participate in the tender offer.
There have been 76 completed deals in the Security industry since the beginning of 2007, according to the PitchBook Platform. With only 5 completed so far this year, it appears the three-year trend of gradually decreasing levels of deal activity in the industry will likely continue. In 2007, there were 32 security deals, while only 21 were completed in 2008 and 18 in 2009. The biggest deal was the 2007 acquisition of Altegrity by Providence Equity Partners for $1.5 billion, which was significantly larger than the next biggest, the buyout of AlliedBarton Security Services for $750 million by The Blackstone Group the following year.