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Interface Security Systems Announces Completion of $115 Million Notes Offering
Proceeds of Offering to Support Interface’s Aggressive Growth Strategy Focused on Delivering Security Solutions in a Fully Integrated and Managed IP Bundle
June 2, 2014

ST LOUIS, MO – Interface Security Systems (“Interface” or the “Company”), a portfolio company of SunTx Capital Partners, today announced the completion of a $115 million notes offering (the “Offering”) by its parent company Interface Master Holdings, Inc. Proceeds of the Offering will primarily be used to fund the Company’s continued growth strategy featuring the multi-location national accounts space, a segment where Interface has experienced unprecedented growth with its unique Internet Protocol (“IP”) managed service offering.

Interface, headquartered in St. Louis, Missouri, is the leading national provider of IP managed physical security and secured managed network services, to primarily large, commercial multi-site customers. The Company provides the most comprehensive suite of IP technology-enabled bundled business security solutions in the market. Physical security solutions include, alarm/event monitoring, interactive video surveillance, managed access control and fire/life safety systems. Secured network services include PCI compliant private managed broadband, managed digital voice and other IP enabled ancillary services.

Michael Shaw, Interface Security Systems Founder and CEO, commented, “Interface is pleased to have closed on this Offering, which garnered significant interest from the investment community. Our unique ability to bundle physical security, video and digital voice over a PCI compliant private managed broadband network is changing the way multi-location retailers procure critical technology for their stores. The proceeds from the Offering will support the Company’s continued focus on penetrating this expanding market segment with its unparalleled services.”

Craig Jennings, Partner and Chief Financial Officer of SunTx Capital Partners, commented, “Interface continues to strategically raise capital in support of its aggressive growth plan. The strong reaction to this Offering reflects the tremendous confidence the investment community has in Interface’s compelling value proposition, and SunTx is proud to be an investor in and partner to Interface.”

John E. Mack III, Director and Co-Head of Investment Banking of Imperial Capital, LLC commented, “This transaction demonstrates strong investor confidence in Interface’s compelling value proposition and is an exceptional example of the combined strength of Imperial Capital's leadership in investment banking services to the Security Industry coupled with our strong Capital Markets capabilities. Interface and SunTx are long-term client relationships for Imperial Capital and we were thrilled to lead the execution of a very well-received Notes offering. As the leaders in a break-out new category for business services at the convergence of physical and network security, Interface is positioned for extraordinary success. We look forward to continuing our support of the Company as it grows.”

Imperial Capital, LLC advised Interface and acted as sole book runner for the Offering with Akin Gump Strauss Hauer & Feld LLP providing legal counsel.

The Notes have not been registered under the Securities Act of 1933 (the “Act”) or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption therefrom. The Notes were offered only to qualified institutional buyers in reliance Rule 144A under the Act and to certain non-US persons outside the United States in reliance on Regulation S under the Act.

About Interface Security Systems
Interface Systems is a cloud based managed security services company headquartered in St. Louis, Missouri. Interface manages a broad range of secure, IP-based security solutions for retail, commercial and small business customers as well as remote interactive video surveillance. The Company operates two UL Approved 5-Diamond CSAA Certified Secure Operations Centers and a nationwide service delivery infrastructure. Interface is a portfolio company of SunTx Capital Partners. For more information on Interface, visit www.interfacesystems.com.

About SunTx Capital Partners
SunTx Capital Partners, LP, is a Dallas-based private equity firm that invests in middle market manufacturing, distribution and service companies. SunTx specializes in supporting talented management teams in industries where SunTx can apply is operational experience and financial expertise to build leading middle-market companies with operations typically in the Sun Belt region of the United States. SunTx was founded in 2001 and currently has over $600 million of assets under management. The capital committed by SunTx comes from the principals of SunTx as well as from institutional investors, including leading university endowments and corporate and public pension funds. More information about SunTx can be found at www.suntx.com.

Media Contact:
Daniel Yunger
Kekst and Company
212.521.4879

Alarm Capital Alliance Acquires Hawk Security Services From Interface Security Systems
January 13, 2014

NEWTOWN SQUARE, Pa.—Alarm Capital Alliance, LLC (“ACA”), a nationwide home security provider based in Newtown Square, PA, today announced that it acquired Hawk Security Services Residential Division (“Hawk Security”) from Interface Security Systems, LLC (“ISS”). Terms of the deal were not disclosed. Based in Fort Worth, TX, Hawk Security has been serving customers in the Texas market since the mid-1980s. As part of the acquisition, ACA will assume over 27,000 residential customers bringing its total served to more than 170,000 customers nationwide. ISS will continue to own and service its 12,000 Hawk commercial customers in Texas under the Interface brand name.

As ACA incorporates these accounts into their existing customer base, they will maintain Hawk Security’s knowledgeable staff and regional branch offices in Dallas/Fort Worth and San Antonio ensuring that the Hawk Security customers will continue to receive the same, great local customer service they’ve come to expect. The company will operate under the name “Hawk Security, a member of My Alarm Center,” which is ACA’s direct to consumer umbrella name. As a member of My Alarm Center, Hawk Security customers will benefit from enhanced services and additional resources focused on the ultimate customer experience.

Hawk Security’s Regional Vice President, Mike Shirley, will continue to serve the organization as Vice President and General Manager and will be instrumental in the transition process and future of Hawk Security. Hawk Security is primarily a residential home security provider, and post-acquisition, this will continue to be the main focus for the company.

“We have had a presence in the Texas market for many years and are excited about significantly expanding our customer footprint in a fairly concentrated region. We are very impressed by the operating team at Hawk and are thrilled to support Mike Shirley as he continues to run the business. All around, this is a fantastic opportunity for ACA to do what ACA does best, integrate and enhance acquired businesses,” said Amy Kothari, President and Chief Executive Officer of Alarm Capital Alliance, LLC.

Michael Shaw, Chief Executive Officer of Interface Security Systems, LLC said, “Over the last 8 years, we built Hawk Security into a premier provider of residential security services in the Texas market. We are confident that ACA represents an outstanding new owner for the business, given their residential focus and commitment to leveraging Hawk’s platform. The sale of Hawk will allow ISS to devote increased financial and operational resources to our fast growing and market leading commercial managed service business.”

In addition to Amy Kothari, Anastasia Bottos, Chief Business Development Officer and EVP of Acquisitions, and Scott Peterson, Chief Financial Officer for ACA were instrumental in completing the acquisition and Brandon Savage, SVP of Customer Experience and Operations, will oversee the transition and integration.

Imperial Capital, LLC served as the exclusive advisor to Interface Security Systems, LLC in the transaction. John E. Mack III, co-head of Investment Banking at Imperial Capital commented, "This transaction made good strategic sense for both parties - Interface, by divesting their Hawk Residential division in Texas, can now focus even more attention on their innovative fast-growing bundled managed service offerings to commercial national account customers and ACA gets an attractive residential customer base and a solid engine for further growth with the Hawk sales team."

About Alarm Capital Alliance
Alarm Capital Alliance, headquartered in Newtown Square, PA, is a leading security alarm company that utilizes a unique business model for the acquisition, installation and management of security alarm contracts and dominates a critical industry niche which includes our Independent Dealer Program. Since inception in 2000, the Company has achieved over thirteen consecutive years of growth and is now ranked nineteenth in SDM Magazine’s list of the largest residential security alarm companies in the country. For more information, please visit our website www.alarmcapital.com.

Interface Systems Honored with Channel Partners 360 Award
February 28, 2013

PHOENIX -- Channel Partners magazine, which focuses on the communications industry's indirect sales channel, is pleased to announce that Interface Systems has been selected as a winner of the inaugural Channel Partners 360 Awards.

Twenty-five winners were honored during an awards ceremony on Feb. 27 at the Spring 2013 Channel Partners Conference & Expo in Las Vegas. These winners will be featured in Channel Partners' March digital issue, May/June print issue as well as on the Channel Partners website. The 2013 program was underwritten by AT&T.

"Unlilke other programs that honor size and sales, the Channel Partners 360 Awards recognizes channel partners who are taking a holistic approach to delivery technology solutions that create business value for their customers," said Khali Henderson, Editor-in-Chief of Channel Partners. "We are pleased that our first honorees include an outstanding group of solutions providers."

"To be among the first recipients recognized by Channel Partners is a huge honor," says Brian Scully, Channel Sales Director. "It's a testament to the suite of IP based services Interface offers to help meet the needs of a rapidly changing retail, commercial and small business environment." Interface services are delivered by a private and managed high-speed network -- to connect and protect data and physical assets with PCI Compliance. The connection delivers cost-saving business services, including Digital Voice, Alarm/Event Monitoring and Interactive Video Surveillance that when bundled, improves performance and lowers costs.

To determine the winner of Channel Partners 360, companies created a "Partner Profile" that detailed how the applicant addresses the convergence of IT and telecom services and how the company creates business value for its customers.

Channel Partners editors and an expert panel evaluated all Partner Profiles to determine the top 25 candidates that exemplify the Channel Partners 360 values.

About Interface Systems
Interface Systems is a cloud based managed services company headquartered in St. Louis, Missouri. Interface manages a broad range of secure, IP-based security solutions for retail, commercial, small business and residential customers as well as remote interactive video surveillance. The Company operates two UL Approved 5-Diamond CSAA Certified Secure Operations Centers and a nationwide service delivery infrastructure. Interface is a portfolio company of SunTx Capital Partners. For more information on Interface, visit www.interfacesystems.com.

About VIRGO Publishing
VIRGO is an information distribution company focused on some of the world's most innovative and complex business-to-business markets. Our mission is to help business professionals break through the hype, ambiguity and information deluge they experience, by offering trustworthy guidance that fuels their results-driven information journey.

About Channel Partners Magazine
Channel Partners magazine is the leading publication for telecom and IT distribution channels. For more than 25 years, Channel Partners has been the undisputed leader in providing news, analysis and education to the indirect sales channels serving the business technology and communications industry. In addition, Channel Partners online (www.channelpartnersonline.com) delivers a constant content stream of unique and breaking industry news, feature articles and premium downloadable content. As official media of the Channel Partners Conference & Expo, Channel Partners is the market leader that channel professionals turn to first.

Channel Partner Contact: Brian Scully, Channel Sales Director - 1.360.719.0185
Business Contact: Jeff Frye, VP Sales and Marketing - 1.866.934.1952

Interface Completes Refinancing and Secures New Growth Capital
January 23, 2013

Earth City, MO -- Interface Security Systems LLC (“Interface” or the “Company”) today announced the completion of a $230 million Senior Secured Notes offering (the “Notes”) and a new $45 million Revolving Credit Facility (the “Credit Facility”) from Capital One Bank’s (“Capital One”) Security and Defense team. Interface is a portfolio company of SunTx Capital Partners (together with its affiliates, “SunTx”) and is the leading national provider of Internet Protocol (“IP”) managed physical security and secured managed network services to primarily large, commercial multi-site customers. The Company provides the most comprehensive suite of Internet Protocol technology-enabled bundled business security solutions in the market.

Proceeds of the Notes offering were used in part to repay the Company’s existing debt and along with the $45 million Revolving Credit Facility can be used for funding the future growth of the business.

Founder and CEO Mike Shaw attributes Interface’s successful introduction into the institutional investor market to the Company’s exceptional performance since combining physical security with secured network services in a fully integrated IP based system. “With the support of SunTx, Interface was one of the first to embrace the convergence of physical and logical security in 2007, having developed the most comprehensive suite of technology enabled managed security solutions in the market. Our physical security solutions include alarm/event monitoring, interactive video surveillance, managed access control and fire/life safety systems. Our secured network services include secure managed broadband (“SMB”), payment card industry (“PCI”) compliance, managed digital voice and other ancillary services.”

Mr. Shaw continued, “What differentiates us in the market is an ability to deliver all our security solutions in a fully integrated and managed IP based bundle. The combination of physical security and secure network solutions onto a single IP based platform creates a compelling value proposition for our customers.”

“The strong execution of the Notes offering reflects the tremendous confidence of the investment community in Interface’s value proposition. Today’s announcement marks an important milestone for all parties involved, and Interface’s successful introduction to the institutional investor base. SunTx has been an investor in and partner of ISS since 2001 and we look forward to the Company’s continued success,” said Craig Jennings, Partner and Chief Financial Officer of SunTx.

Imperial Capital, LLC (“Imperial”) advised the Company and acted as sole book runner for the Notes offering. Imperial also assisted the Company in securing the new Credit Facility with Capital One. John E. Mack III, Director and Co-Head of Investment Banking at Imperial commented, “We were thrilled to lead the execution of a very well-received Notes offering. Interface, as the leader in a break-out new category for business services at the convergence of physical and network security, is positioned for extraordinary success.”

Bill Polk, Managing Director of Security, Defense, & Technology, Commercial & Specialty Finance, Capital One Bank, noted, “Capital One Bank is committed to providing specialized services to companies in the security and defense industry. We recognized and supported the strategic value of Interface's acquisition of Westec Intelligent Video Surveillance, and have since witnessed the extraordinary growth in the company's break-out IP based physical and network security service offerings. The $45 million Credit Facility will provide growth capital for Mike Shaw and his team at Interface to continue to innovate and grow as leaders in their industry.”

About Interface Security Systems, LLC
Interface Security Systems, LLC is a cloud based managed services company headquartered in St. Louis, Missouri. Interface manages a broad range of secure, IP-based security solutions for retail, commercial, small business and residential customers as well as remote interactive video surveillance. The Company operates two UL Approved 5-Diamond CSAA Certified Secure Operations Center and a nationwide service delivery infrastructure. Interface is a portfolio company of SunTx Capital Partners. For more information on Interface, visit www.interfacesystems.com.

About SunTx Capital Partners
SunTx Capital Partners, LP, is a Dallas-based private equity firm that invests in middle market manufacturing, distribution and service companies. SunTx specializes in supporting talented management teams in industries where SunTx can apply is operational experience and financial expertise to build leading middle-market companies with operations typically in the Sun Belt region of the United States. SunTx was founded in 2001 and currently has over $600 million of assets under management. The capital committed by SunTx comes from the principals of SunTx as well as from institutional investors, including leading university endowments and corporate and public pension funds. More information about SunTx can be found at www.suntx.com.

About Imperial Capital, LLC
Imperial Capital, founded in 1997, is a full-service investment banking firm with offices in Los Angeles, New York, San Francisco, Minneapolis, Boston, Chicago & McLean. The firm currently employs over 230 professionals and offers a wide range of proprietary products and services to institutional investors, middle market companies and private equity firms. More information about Imperial Capital can be found at www.imperialcapital.com.

For further information about Interface Security Systems LLC, please contact:
Jeffrey Frye, Vice President of Marketing
(314) 595-0110
jeff.frye@interfacesystems.com

 

Interface Retires "Westec Intelligent Surveillance" Brand
Interactive Video Surveillance products now called “Digital Witness”
January 13, 2013

St. Louis, MO and Dallas, TX -- Interface Security Systems, LLC, the St. Louis based, leading provider of Secure Managed Cloud Services, today announced it is discontinuing use of the Westec brand. Interface acquired Dallas based Westec Intelligent Surveillance, Inc. in March 2012 – and will immediately rebrand the Westec suite of Interactive Video Surveillance services under the Digital Witness name.

Digital Witness products include Virtual Guard Services, Video Verification, Virtual Tours, Video Audits and 360 Maintenance for camera systems, regardless of manufacturer. All of the Digital Witness products will continue to carry the distinctive yellow triangle warning sign logo.

Combining the Digital Witness award-winning video offerings with Interface Secure Managed Broadband gives business operators the highest level of quality and control in digital surveillance. Previously, surveillance applications had been at the mercy of third party broadband providers. Now, the Interface Secure Managed Cloud takes control of the broadband service to ensure remote video access with the best picture quality, to create the most actionable evidence and ultimately creating the highest customer satisfaction.

Interface creates the only nationwide managed service provider of security solutions (burglar alarm, life safety, video, point-of sale integration, access control) PCI Compliant Secure Managed Broadband and Managed Digital Voice in a cloud based architecture. Interface customers are among the best-known Fortune 500 names in the retail, QSR and hospitality industries.

“The strength of our products continues to turn heads in this industry,” said Kelby Hagar, President of the Digital Witness division. Interface founder and Chief Executive Officer, Michael Shaw, sees the name change as another step in the consolidation of this unrivaled product offering. “Interface uniquely combines physical security and data security monitoring with a communications service for superior protection of people, property and logical assets.”

About Interface Security Systems, LLC
Interface Security Systems, LLC is a managed service company based in St. Louis, Missouri. Interface manages a broad range of secure, IP-based solutions for retail, commercial, small business and residential customers through a UL Listed Secure Operations Center and a nationwide full service branch network. Interface is a portfolio company of SunTx Capital Partners. For more information on Interface, visit www.interfacesystems.com.

Business Contact: Jeff Frye, VP Sales and Marketing – 1.866.934.1952

 

New Voices Join Alliance for Video-Verified Alarms
December 12, 2012 by Rich Miller, Security Systems News

Click here to read the Security Systems News article.

The Partnership for Priority Video Alarm Response has added four new voices to its campaign to increase arrests and reduce property losses through the use of video-verified alarms.

Joining the PPVAR’s board of directors are Jacqueline Grimm, Vice President of Security Solutions for Diebold Inc.; Douglas Curtiss, President of Sonitrol New England; Jon Bolen, Chief Technology Officer for Interface Security Systems; and Robert Baxter, President of Radius Security.

The new directors from the security industry will work with representatives from the National Sheriffs Association and the National Insurance Crime Bureau, an alliance of groups that would have seemed unlikely a few years ago.

“We’re pleased to join PPVAR to promote priority response to video alarms that are verified by a certified central station,” Grimm said in a prepared statement from the partnership. “[Diebold has] offered alarm verification services for many years, and our focus on priority response, apprehension and risk reduction provides comprehensive threat protection. Also, by assisting law enforcement with a second-by-second situation analysis, we can help improve officer and customer safety while increasing criminal apprehension rates.”

Bolen, who was the chief product officer for Westec before it was recently acquired by Interface, is a 15-year veteran of video verification. He cited its benefits by breaking down the numbers.

“We have reduced and maintained our dispatch rate to less than 3 percent of events handled by our operators, meaning that over 97 percent of the alarms we receive are resolved without the costly, and often needless, intervention of authorities,” he said in the PPVAR statement. “We are pleased to join an organization promoting this kind of value.”

Curtiss of Sonitrol, which has a history working with police to make arrests through audio verification, echoed Bolen’s sentiments.

“Whether it is audio or video, the operator is a witness to a crime in progress,” he said. “From my perspective, the ‘V’ in PPVAR is ‘verification.’ We support his organization and its work to reduce false alarms and make more arrests.”

Canada gets a nod in the PPVAR with the addition of Baxter. He is president of Radius Security, a Greater Vancouver video monitoring central station.

“Alarm response in many cities in Canada has been degrading as budgets and police resources decline,” he said. “Video-verified alarms help us provide greater security for our customers and reduce false alarms for our law enforcement partners.”

 

Interface Security Systems Buys Westec Intelligent Surveillance
Combined company is major independent managed service provider
March 29, 2012 by Martha Entwistle, Security Systems News

Click here to see Martha Entwistle's interview with Jeff Frye.

LAS VEGAS — Interface Security Systems a St. Louis-based integrator, acquired Westec Intelligent Surveillance, Jeffrey Frye, Interface VP sales and marketing told Security Systems News on March 28.

Frye said the bundling of services will mean more capabilities for customers of both companies at a better price. Westec and Interface customers include Fortune 500 names in the retail, QSR and hospitality industries.

“We each have a sweet spot in multi-site customers and in retail and commercial,” Frye said. Now we can “offer a higher-value video surveillance product that is really without parallel in the marketplace. Interface also has other value-added services [such as] PCI, data security to complement physical security, so the two companies together can provide a greater feature set that we are eager to unleash in the marketplace.”

Terms of the deal were not announced. Westec has 200 employees and $1.7 million in RMR. ISS has 650 employees and 22 offices in North America. With the addition of Westec, it will have approximately $7.6 million in RMR, according to Frye. Interface has “120,000 monitored accounts that represent 480,000 edge devices that it monitors,” he said. Westec monitors approximately 20,000 customers locations, he said.

Founded in 1996, Westec is based in Coppell, Texas and is considered a pioneer in bringing interactive video and audio monitoring to the market. Today it offers interactive monitored video solutions and virtual business management tools at 20,000 customer locations across the country.

Interface is a provider of IP-managed cloud services, which introduced cloud based managed physical and logical service offerings. Last summer, Interface announced that it was certified as an Advanced Managed Services Channel Partner by Cisco, and in July ISS began marketing its Secure Managed Cloud Services through a special Cisco program.

Last fall, Interface announced a huge managed cloud services deal with 9,500 Dollar General stores that was expected to generate more than $100 million in “top line revenue for interface.”

“The combination of Interface and Westec creates the only nationwide managed service provider of security solutions (alarm, video, access control) along with VoIP and secure broadband in a cloud based architecture,” Interface founder and CEO Michael Shaw said in a prepared statement. “Our customers now have access to best in class video monitoring services. From searchable point-of-sale and video integration to auditing of customer service with a remote secret shopper to interactive guard tours, these services will now be delivered with improved quality and availability via the Interface Secure Managed Cloud.”

Westec President and CEO Kelby Hagar said in a prepared statement: “Until now surveillance applications have been at the mercy of a third party broadband provider to deliver the service … Now the Interface Secure Managed Cloud takes control of the broadband service to ensure remote video access with the best picture quality, to create the most actionable evidence and ultimately creating the highest customer satisfaction.”

The deal also brings a second central station to Interface, noted John Mack, EVP and managing director at Imperial Capital, which advised Westec on the deal. Westec has a central station in Dallas and Interface has a central in Earth City, Mo.

Mack said that the combined companies will be able to offer customers, such a Dollar General, more advanced solutions. "If a Dollar General [for example,] wants to increase its video capabilities in its stores, Interface now has the perfect solution to do that at scale better than anyone," he said.

 

Interface Security Systems Acquires Westec Intelligent Surveillance
March 27, 2012

St. Louis -- Interface Security Systems, LLC has completed a merger transaction with Westec Intelligent Surveillance, Inc. Westec, based in Coppell, Texas, is the nation’s largest full-service video surveillance monitoring provider offering cutting edge interactive monitored video solutions and virtual business management tools to a diverse national commercial customer base. Interface is the leader in IP Managed Cloud Services and first to market with its cloud based managed physical and logical service offerings.

The combination of Interface and Westec creates the only nationwide managed service provider of security solutions (alarm, video, access control) along with VoIP and secure broadband in a cloud based architecture. Westec and Interface customers are among the best-known Fortune 500 names in the retail, QSR and hospitality industries.

Interface founder and Chief Executive Officer Michael Shaw calls the merger a strategic move for both companies that creates a unique and unrivaled product offering. “Our customers now have access to best in class video monitoring services. From searchable point-of-sale and video integration to auditing of customer service with a remote secret shopper to interactive guard tours, these services will now be delivered with improved quality and availability via the Interface Secure Managed Cloud.”

Westec President and Chief Executive Officer Kelby Hagar says combining video surveillance with a managed network is a huge benefit for business operators. “Until now surveillance applications have been at the mercy of a third party broadband provider to deliver the service,” said Hagar. “Now the Interface Secure Managed Cloud takes control of the broadband service to ensure remote video access with the best picture quality, to create the most actionable evidence and ultimately creating the highest customer satisfaction.”

Imperial Capital, LLC. acted as exclusive financial advisor to Westec. “This transaction has created the leading independent player in the managed security solutions business,” according to John E. Mack III, Managing Director and Co-Head of Investment Banking at Imperial Capital.

Both companies are privately held and terms of the transaction will not be disclosed.

About Westec
The pioneer of interactive video monitoring, Westec delivers the industry’s only intelligent business monitoring solution serving Fortune 500 companies and smaller owner/operators throughout the U.S. Its strategic business solutions help leading retailers, restaurants and other companies improve operations and profits through intelligent business monitoring services. For more information on Westec Intelligent Surveillance, visit www.westec.net.

About Interface Security Systems, LLC
Interface Security Systems, LLC is a managed service company based in St. Louis, Missouri. Interface manages a broad range of secure, IP-based solutions for retail, commercial, small business and residential customers through a UL Listed Secure Operations Center and a nationwide full service branch network. Interface is a portfolio company of SunTx Capital Partners. For more information on Interface, visit www.interfacesystems.com.

About SunTx Capital Partners
SunTx Capital Partners is a private equity firm based in Dallas, Texas that invests in middle-market manufacturing, distribution and service companies. Since the firm’s inception in 2001, SunTx has invested over $600 million in a variety of sectors. For more information on SunTx Capital Partners, visit www.suntx.com.

Business Contact: Jeff Frye, VP Sales and Marketing – 1.866.934.1952

 

Interface bundles services for 9,500 Dollar General retail stores
Deal saves millions on phone service alone for end user
by Martha Entwistle, Security Director News/Security Systems News

Oct. 2011 - Click here to download the SSN article by Martha Entwistle

Aug. 23, 2011 - Click here to read the SDN article by Martha Entwistle

ST. LOUIS—Interface Security Systems is in the process of completing the installation of a secure managed cloud services project for the entire Dollar General 9,500-store retail chain. While terms of the deal were not released, Interface CEO Michael Shaw told Security Systems News that the Dollar General multi-year contract is “expected to generate in excess of $100 million in top-line revenue for Interface.”

Interface is providing the WAN management, PCI compliance, wireless access management, IP alarm system monitoring, IP video surveillance, and Interface digital voice. This suite of secure cloud-based applications and management is delivered via Interface Secure Managed Broadband, a wide-area network design featuring redundant, high-speed network connections for failover and business continuity.

Officials from Dollar General declined to be interviewed for the story. Dollar General is a publicly-traded company with 2010 revenues of about $12 billion; the company employs more than 86,000.

“They are in 40-something states and are growing at a remarkable pace, adding about 600 new stores every year,” Shaw said.

With this project, Dollar General was looking to do three things, Shaw said.

First, it wanted to standardize and improve overall store operations with a faster, more reliable WAN, to better deal with POS reporting and PCI compliance. Second, a new loss prevention director wanted to upgrade the stores’ security systems from old analog digital dialer panels to IP panels with GSM backup. The LP director also wanted to be able to access video from the stores remotely.

And third, the company wanted to eliminate the POTS lines in the stores and go to VOIP phone service.

Vying for different portions of the job were major networking, telco and security providers. While some network and security providers proposed working together on the project, Interface was the only one that was able to take on all of the elements of the job, from the networking, security and telephony—and components of those systems, including the Cisco routers on the premises, the Honeywell IP security panels, PCI compliance, and video surveillance, according to Robert Aranda, Interface IP Services president.

“The design of the system is our secret sauce,” Aranda said. With different providers managing security, telephony and network and loss preventions system for an enterprise this large there would likely be “a collision on [the network on] a regular basis,” Aranda said.

“From a physical, IT and logical perspective, we manage all of it,” he said. “I don’t know of another provider that’s willing to take this level of responsibility.” Aranda said this is the “source of our growth.” Indeed, Interface executives reported that the company doubled its RMR from 2007-2011 and grew at 15 percent CAGR between 2008 and 2010.

Aranda said the company’s security expertise helped clinch the deal because Interface was the only provider who addressed the difficulties of VOIP telephone service not working with digital dialer panels upfront.

Changing to VOIP service will save Dollar General millions of dollars, Shaw said. “They had 450 different telephone providers ... they had a whole staff of people just to manage the phone bills,” he said. “We send one bill—for all services.”

Interface was awarded the contract in June of 2010 and the installation will be complete by the middle of October. Shaw said the project management team, led by Michael McCleod, completed “800 to 900 stores per month to keep up with the schedule.”

Interface worked with Vertek, a Vermont-based on-demand telco engineering company for the provisioning and management of the delivery of broadband. It worked with Endeavor, a private-label field service fulfillment and logistics company, which “stepped up their organization to support field organization requirements [for the project].”

 

Triple Play? Why Not Go For a Grand Slam?
Sept 1, 2011 by Justin McLain, CEO, Endeavor Telecom

Click here to read the Channel Partners Online article by Justin McLain

For well over a decade, service providers have touted the considerable success in the bundling of "triple play" – the common suite of voice, data, and video/content services over some form of access. This type of three-pronged package is a fundamental utility when engaging residential end customers who utilize each of the different services daily. But is this traditional idea, the “Triple Play" package, relevant for commercial end customers?

I would argue that no, the traditional triple-play bundle does not have the same market demand, due in large part to a general lack of business interest in entertainment content services. Add to that the presence of legacy cable providers (MSOs)-turned-voice-and-data providers for high-capacity access lines, and this traditional model becomes even less appealing to non-MSO service providers. So, how can carriers and agents hope to effectively sell a triple-play package where one of the three offerings may be of little or no value to many potential customers? That’s easy, you change the equation.

For years, commercial service providers have been layering in app-over-app to bundle in access offerings. Even with disaster recovery, online backup, cloud computing, hosted PBX, etc, there is next to no bundling of the one service which has the same universal appeal to every business in America like broadband and video. That third service is security; physical security systems used for burglar alarms, intrusion detection, and premise safety systems. Until recently, managed service providers (MSPs) have largely neglected this true third option of the “telecom trifecta" but mark my words; premise security solutions will become “the next big thing" that sweeps across the industry.

With the convergence of IP networks, VoIP frequently proved to be disruptive to legacy-based analog security systems. Now, with the emergence IP-enabled alarm panels backed up through wireless cellular networks, the market is ripe for a true commercial triple-play bundle which includes security services as that third option. While only a limited number of commercial customers have interest in TV service, every business, whether in the retail, industrial, or administrative space, has the need to protect its property and people. In addition to universal appeal, the RPU on security solutions is much higher than providing TV service to businesses.

So now that you, as a channel leader, are sold on the idea of bundling premise security, it is natural to wonder who is providing such a service to sell. A handful of innovative managed service companies such as Interface Security Systems (ISS) are starting to roll out programs that utilize premise security, digital voice and Internet access via managed broadband connections. In fact, ISS recently announced a new program through which its channel partners finally can offer bundles, including security systems, to commercial clients.

“Many VARs and communication integrators know the benefits of cloud-based services, but have a hard time, and limited resources, transitioning to them," said Robert Aranda, president of Interface IP Services Division. “Our new Channel Partner Program is the easiest way to immediately sell Interface Secure Managed Cloud Services, enter new markets, boost recurring monthly revenue, lower attrition and increase customer loyalty – all with little to no capex requirement."

So there you have it. For the first time in what has been a very long time coming, a commercially meaningful triple-play package is available via the channel. As more companies like ISS emerge and begin offering such programs, so will opportunities emerge for agents on the channel as well. So what are you waiting for? Get out there and hit a grand slam!

Endeavor Telecom CEO Justin McLain is responsible for overseeing company operations. As the steward of Endeavor’s value, he is focused on the development of new service products and strategic relationships assuring the company’s continued growth and success within the telecommunications industry and is actively involved in managing Endeavor’s relationships with its largest customers. McLain has been in executive management with Endeavor since its divestiture in 2002. Prior to that, he worked for HealthSource and Shin-Etsu Polymer Corp. McLain earned a bachelor’s degree in business administration and a bachelor’s degree in biology from the College of Charleston. He also is a member of the 2010-11 Channel Partners Advisory Board.

 

Channel Partner Program Offers Immediate Cloud Services Opportunities that Lead to Cost Savings and Productivity Improvements
Aug 4, 2011

Interface Systems (ISS) today announced a program for select channel partners to quickly capitalize on expanding demand for Secure Managed Cloud services with ISS’s first-to-market cloud portfolio. By combining event monitoring, security, digital voice, and Internet access on a managed broadband connection, ISS cloud products provide unique value in commercial and retail verticals by simplifying operations and reducing costs.

“The ISS Secure Managed Cloud Services allow our partners to reengage and revitalize their customers with new products that improve operations, save money and cut expenses,” said Interface VP Sales and Marketing Jeffrey Frye. “For the partner, these services are a proven way to expand service opportunities, increase customer loyalty and reduce attrition overall.”

Unveiled this week at the IDeACOM, Independent Distributors Association, LLC Annual Conference in Santa Fe, NM, the Interface Managed Service Sales Channel Partner Program provides tools for channel partners to enter the new cloud service provider market with little to no capital investment, leveraging their existing overhead and employee talent. ISS Channel Partners get immediate access to many years of experience and the millions of dollars of investment Interface has devoted to become the market leader in cloud based services for communications and physical and logical security.

“Many VAR’s and Communication Integrators know the benefits of cloud-based services, but have a hard time, and limited resources transitioning to them,” said Robert Aranda, President of Interface IP Services Division. “This new Channel Partner Program is the easiest way to immediately provide Interface Secure Managed Cloud Services, enter new markets, boost recurring monthly revenue, lower attrition and increase customer loyalty—all with little to no cap ex requirement.”

About Interface
Interface Security Systems, LLC is a privately held, managed service company based in St. Louis, Missouri with regional offices in Dallas, Long Beach, Memphis and New Orleans. Interface is a portfolio investment of Dallas-based private equity firm SunTx Capital Partners. Interface manages a broad range of secure, IP-based solutions for retail, commercial, small business and residential customers through a UL Listed Secure Operations Center and a nationwide full service branch network.

Contact:
Jeffrey Frye
Interface Systems
1.866.934.1952

 

Dollar General Corporation Adopts Interface Secure Managed Cloud Services
July 25, 2011

St. Louis -- Interface has signed a multi-year contract with Dollar General to provide Secure Managed Cloud Services that will improve operations, and increase the security of customer and employee data, while providing significant reductions in operating expenses.

Interface’s Secure Managed Cloud Services for Dollar General includes Wide-area Network Management, PCI Compliance, Wireless Access Management, IP Alarm System Monitoring, IP Video Surveillance, and Interface Digital Voice. This first-to-market suite of secure cloud based applications and management is delivered via Interface Secure Managed Broadband, a wide-area network design featuring redundant, high-speed network connections for failover and business continuity.

Under the agreement, Dollar General will use Interface Managed Cloud Services for its entire retail store network, which includes more than 9,500 store locations.

“What Interface delivers for any single location or a large organization like Dollar General is the economy of vendor consolidation. Interface offers a single point for billing and support,” said Michael Shaw, CEO of Interface, “which combined with system standardization are huge improvements in efficiency.”

“Our Secure Managed Cloud Bundle provides Dollar General with a cost-saving and scalable technology template,” said Robert Aranda, IP Division President of Interface. “Dollar General is one of the first major retailers to embrace bundling these critical in-store services. We are honored to be a part of Dollar General’s business strategy.”

About Dollar General Corporation

Dollar General Corporation has been delivering value to shoppers for more than 70 years. Dollar General helps shoppers Save time. Save money. Every day!® by offering products that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, basic apparel, house wares and seasonal items at low everyday prices in convenient neighborhood locations. With more than 9,500 stores in 35 states, Dollar General has more retail locations than any retailer in America. In addition to high quality private brands, Dollar General sells products from America's most-trusted manufacturers such as Procter & Gamble, Kimberly-Clark, Unilever, Kellogg's, General Mills, Nabisco, Hanes, PepsiCo and Coca-Cola. Learn more about Dollar General at www.dollargeneral.com.

About Interface

Interface is the Leader In Secure Managed Cloud Services and first to market with its unique service offerings, a customer cost savings value proposition. Interface’s unique technology offerings, intellectual property, reliable service delivery and dedication to customers are the reasons Interface has experienced profitable growth for over two decades.

Business Contact:
Jeffrey Frye
Interface Systems
866-934-1952

Media Contact:
Melissa Sheer/Donald Cutler
Kekst and Company
212-521-4800

 

With Cisco Certification, Interface Security Systems Poised For Growth
ISS credits bundled services for double-digit RMR growth during recession
Jun 30, 2011 by Martha Entwistle, Security Systems News

Click here to read the SSN article by Martha Entwistle

ST. LOUIS—Following record growth during the recession-plagued years of 2008-2010, Interface Security Systems executives believe that their company today stands at the brink of another huge growth spurt.

In a milestone that ISS CEO Michael Shaw calls “a huge breakthrough,” Shaw announced June 20 that ISS has been certified as an Advanced Managed Services Channel Partner by Cisco. In July ISS will begin marketing its Secure Managed Cloud Services through a special Cisco program.

What does that mean? It means “we’ll now have Cisco value added resellers across the country introducing us to their customers. This will dramatically increase our feet on the street and exposure,” Shaw said.

“We already know our [bundled data and physical security] solutions work well based on the adoption rate through our own initiative,” he said. And he expects the new relationship with Cisco to translate into even more rapid adoption.

ISS, which was founded by Shaw in 1996, has its roots as a traditional security integrator. In 2007, the company acquired network services and IP integration firm LPM, which had its own nationwide high-speed IP aggregation network.

With this acquisition, ISS expanded its services to include Wide-Area Network management, PCI compliance, IP alarm monitoring, IP video surveillance and digital voice.

It’s an acquisition that has paid off.

Between 2008 and 2010, while many integrators were struggling to stay even on RMR, the company had CAGR of 15 percent. “We’ve been growing by leaps and and bounds,” Shaw said. After ISS acquired LPM in 2007, it had “just over $3 million in RMR and we’ll end 2011 with $6 million in RMR. This is all organic growth,” Shaw said.

The company has added about 100 employees since 2007 to a total today of 625. It has 22 branch offices across the country. The company retrained all of its commercial sales people to sell the bundled services and developed a national account sales team. It also expanded and remodeled its Secure Operations Center. To cover areas where it does not have brick and mortar offices, ISS partners with an Atlanta-based company called Endeavor, which has a network of 9,000 field engineers across the country.

ISS provides its bundled physical and logical services to customers that include Caterpillar, Sunoco, Williams-Sonoma, and a number of quick-service restaurants and retail establishments including Pizza Hut, KFC and Taco Bell.

“We’ve taken a regional company and turned it into a national platform. All of our growth has been done on Cisco’s core routing and switching platform. We’ve taken an enterprise-level solution [for bundling data and physical security applications on a broadband connection that we manage in the cloud] to the small- and medium-sized business market. It’s a solution that most small- and medium-sized businesses couldn’t afford unless it was bundled,” Shaw explained.

Cisco took note of the volume of routers ISS was selling and approached ISS last year about becoming a Managed Services Channel Partner, said Robert Aranda, IP Services president for ISS.

Cisco approached ISS about the certification when it realized the volume of business ISS was doing. “We wanted to get closer to the company and make sure we were supporting them,” Brad Burns, partner account manager Service Provider Channels for Cisco, told Security Systems News.

“We didn’t realize how many routers they had deployed and how [extensively and well] they’d leveraged our technology,” he said. “They are unique. A lot of Cisco partners don’t have that [physical security] expertise.”

Aranda said the Cisco certification includes a “rigorous third-party audit of all Interface’s internal process and procedures.” Fewer than 100 companies worldwide have achieved this certification, he said.

“With POTS going away, if you’re not ready to provide your customer with an immediate, proven solution, someone else is going to do that,” Shaw said. With this new relationship with Cisco, “we are excited about more robust growth and expansion.”

 

Interface Security Systems Receives Cisco’s Highly Coveted Advanced Managed Services Partner Certification
First-to-Market Managed Service Provider to leverage thousands of Cisco’s value added resellers
June 20, 2011

Interface Security Systems (ISS) joins an elite class of Cisco Systems partners after recently receiving Cisco’s Advanced Managed Services Channel Partner (MSCP) certification.

Achieving the Advanced MSCP certification is based on the ability to provide ISS Secure Managed Cloud Services, which include wired and wireless data security and physical security services like IP-based alarm and life safety monitoring. Entry into the Cisco MSCP is by invitation only, with fewer than 100 certified Partners worldwide. Partner certification is earned by passing a rigorous, third-party audit of product design, business process, service delivery and improvement based on the globally recognized Information Technology Infrastructure Library (ITIL) standard. With MSCP certification, Interface will actively market its Secure Managed Cloud Services in a special program for Cisco’s network of thousands of value added resellers.

“Achieving the MSCP certification is recognition of our first-to-market bundling of data and physical security applications on a broadband connection that we manage in the cloud,” said Interface IP Services President Robert Aranda. “Cisco’s invitation to join the MSCP is an acknowledgement of customer demand for our unique service bundle, making Interface one of the highest volume integrators of Cisco G2 routers and router services.”

Interface manages approximately 476,000 remote customer devices for some of America’s best-known names in business and commerce including Caterpillar, Sunoco, Williams-Sonoma, Edward Jones Investments, and Michaels and Aaron Brothers stores. ISS also has wide adoption of its Secure Managed Cloud Services in retail franchise groups including Carl’s Jr., Pizza Hut, KFC, and Taco Bell.

“It’s a pleasure to present our Secure Managed Cloud Services to clients,” said Interface National Sales Director Jeffrey Frye. ”This capability brings different departments like Loss Prevention, IT and Telecom, together in one unified effort to reduce phone lines, save money and improve operations and service.”

Since 1995, Interface has been known as a leading integrator and monitoring service for electronic security systems and is currently ranked as the 11th largest company in the industry  by Security Distribution and Marketing magazine. In 2007, Interface acquired New Mexico-based LPM and became the leader in IP Convergence, expanding its services to include Wide-Area Network Management, PCI Compliance, IP Alarm System Monitoring, IP Video Surveillance, and Interface Digital Voice. These cloud-based applications are delivered via Interface Secure Managed Broadband, a managed cloud featuring redundant, high-speed edge connections for failover and business continuity.

 “Our strategy of using our Secure Managed Cloud to drive service adoption, closely parallels Cisco’s,” said Interface CEO Michael Shaw. “The demonstrated success of our new model has resulted in double-digit annual growth rates in subscriber based service revenues, and a nearly 300% increase in average revenue per new subscriber.”

About Interface Security Systems, LLC
Interface Security Systems, LLC is a privately held, managed service company based in St. Louis, Missouri with regional offices in Dallas, Long Beach, Memphis and New Orleans. Interface is a portfolio investment of Dallas-based private equity firm SunTx Capital Partners. Interface manages a broad range of secure, IP-based solutions for retail, commercial, small business and residential customers through a UL Listed Secure Operations Center and a nationwide full service branch network.

Business Contact:
Jeffrey Frye
Interface Security Systems
866-934-1952

Media Contact:
Melissa Sheer/Paige Gruman
Kekst and Company
212-521-4800

 

Interface Security-Earth City, MO Renews CSAA Five Diamond Central Station Certification
March 15, 2011

Vienna, VA -The Central Station Alarm Association (CSAA) is pleased to announce that Interface Security Systems, LLC, Earth City, MO has renewed the prestigious CSAA Five Diamond Certification.

This Certification testifies that 100% of their central station operators have achieved proficiency and certification by passing the CSAA Central Station On-Line Operator Training Course. These courses cover virtually all phases of central station communications with customers, law enforcement, fire and emergency services communications centers. This critical area of communications is the life-saving link between the residential or business properties and the law enforcement, fire and emergency services in local areas.

In order to achieve the Five Diamond Certification, each and every operator must have not only passed the course, but demonstrated:
  • Proficiency in alarm verification, which helps reduce false alarms
  • Proficiency in communications with the Public Service Answering Points, such as the Emergency 911 centers
  • Knowledge of electronic communications equipment, including radio
  • An understanding of the codes and standards of such organizations as Underwriters Laboratories, Factory Mutual, the National Fire Protection Association and others
  • Proficiency in the area of emergency preparedness under a wide scenario of possibilities

In addition, these Five Diamond companies have demonstrated an exceptionally high degree of responsibility to their local community and their customers through the investment of time, money and commitment to 100% quality operator training.

The Central Station Alarm Association (CSAA) is a 60 year-old non-profit trade association that represents the major burglar and fire alarm central monitoring stations. CSAA is located in Vienna, Virginia, outside of Washington, D.C.

 

 

Hawk Security Services, An Interface Company, Voted Top 100 Best Places to Work by the Dallas Morning News
Company ranked one of the best workplaces for the second year in a row
January 31, 2011

For the second year, the Dallas Morning News surveyed the Top 100 Places to Work, and for the second year in a row, Hawk Security Services, An Interface Company, was ranked one of the best workplaces.

“Our inaugural magazine in 2009 was a hit, and the response this year underscored that. Anyone can nominate a company to be on the list, and our research partner, Workplace Dynamics, conducts the survey. More than 1,000 companies were nominated this year, and more than 48,000 employees filled out surveys, up from 33,000 last year,” says Dennis Fulton, DMN Business Editor.

“We don't choose the winners; the employees do. In the survey, they're asked to look at a series of statements and tell us whether each one applies to their workplace and how important they think it is. Those responses are tabulated to determine the Top 100.

“One theme that emerged: Leadership counts. This year's respondents overwhelmingly agreed that they love working for bosses who inspire confidence and keep them in the loop. The least important category, as in last year's survey, was pay and benefits,” Fulton adds.