Avante Logixx secures financing, acquires A.S.A.P. Secured Inc.
By CS StaffNews A.S.A.P. Secured acquisition ASAP avante logixx Financing operations security services
TORONTO — Toronto-based security services provider Avante Logixx Inc. has announced that Fairfax Financial Holdings Ltd. will provide it with an $18 million investment through a private placement of unsecured convertible debentures.
“We are excited to announce Fairfax as a long term strategic financial partner, allowing Avante access to capital while maximizing shareholder value,” said Craig Campbell, CEO of Avante, in a prepared statement. “The patient and long term view of Fairfax, coupled with their disciplined investment style, is well aligned to our strategic plan of building a world-class, globally relevant security solutions provider.”
Avante intends to use the net proceeds of the investment for the purpose of financing the acquisition of physical security services provider A.S.A.P. Secured Inc. (ASAP). It will acquire the outstanding shares of the company from AFIMAC Canada Inc. and Dalton First Financial Inc., subject to certain closing conditions.
“I am very pleased to welcome ASAP and its team to Logixx Security Inc., a platform company of Avante Logixx,” said Campbell. “This acquisition is strategic to achieving our overall vision and provides us a national platform to target large, national accounts where security is mission-critical. The integration of ASAP into Logixx gives Avante pro-forma trailing twelve-month revenue of approximately $70 million and the ability to compete on a national level. ASAP’s management team will also be joining us, including the president, Han Koren. Han is a seasoned veteran in the security industry. Han has global experience as well as experience leading the Canadian operations of a global security group. Han is expected to lead Logixx once ASAP has been fully integrated. We are confident that ASAP will be a great addition to the Avante platform as we continue to execute on our strategic vision.”
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ASAP, based in Milton, Ont., was founded in 2005 and employs approximately 800. The acquired firm focuses on industrial and national account security solutions, has operations across Canada and is licensed in eight provinces.
“We celebrate an important milestone today for ASAP as we formally join the Avante Logixx team,” said Han Koren, president of ASAP, also in a statement. “United under the Avante umbrella, we will draw on our years of experience and continue to deliver outstanding security solutions to our customers, changing how the industry does business, and continue to grow our business.”
“The combined operations have a large and diversified client base that represents a tremendous opportunity for revenue synergies, as a result of a broader set of services and solutions to offer coupled with our increased geographic capability,” said Campbell. “We intend to migrate many of our existing customers and new prospects into our managed services division, thereby migrating single service customers into multiservice bundles. A number of cost synergies will also be achieved in the first 12 months.”
The transaction is expected to close on or about Dec. 1, 2019.
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