KANSAS CITY, Mo. — Absolute Systems, based here, recently acquired the security division of Hill Country Telephone Cooperative (HCTC) of Ingram, Texas, for an undisclosed amount.
Alarm Financial Services (AFS) provided financing in the form of a term loan for the transaction. The acquisition commences a partnership between Absolute Systems and HCTC to meet the security needs for HCTC’s commercial and residential customers.
Absolute Systems and its owner, Scotty Rhoads, have been providing residential and commercial security systems and services in Kansas City since 2009. The company expanded to Houston and San Antonio, Texas, in 2017.
HCTC is an Internet and phone service company with a focus on keeping rural Texans connected. The cooperative provides telecommunications products and services for both residential and commercial accounts. HCTC services 15 counties across 3,000 square miles of rural Texas.
Absolute Systems has been providing maintenance and repair services to HCTC customers for the past few years. When the opportunity arose to acquire the security division, Absolute was in a unique position to expand its relationship with HCTC and its customer base, according to an announcement.
Scott Link, COO of HCTC, comments, “Scotty and his team will bring the focused approach that is needed to not only maintain security coverage but expand options for our members as well.”
AFS President Jim Wooster explains the partnership will provide a great opportunity for Absolute to leverage its experience as a provider of subcontracted service and grow its recurring revenue monitoring business.
“This is another example of a growing trend where forward-looking small- to medium-sized alarm companies are using their RMR to obtain capital for growth,” Wooster continues.