Edmonds Group Arranges $30 Million Subprime Account Purchase Program

ST. LOUIS, April 2, 2014 – The Edmonds Group today announced the initial closing under a $30 million program to purchase subprime security alarm accounts from one of the nation’s largest alarm companies.  The buyer, a large alternate asset investing firm, will buy accounts with low credit scores and accounts with no credit score available.  The seller will enter into a long term agreement with the buyer to provide monitoring, billing and onsite service for the purchased customers. Neither party wished to be identified.

According to Henry Edmonds, President and Founder of The Edmonds Group, “This transaction provides an opportunity for the seller to lower their average cost of customer origination by accepting customers they would otherwise have turned away while avoiding the increase in their attrition rate they would experience by owning subprime customers.   From the buyer’s perspective, by paying a price that that takes into account the expected higher attrition rate of subprime accounts, they expect to achieve an attractive return.”

Eric Pritchard of Kleinbard Bell & Brecker, LLP represented the buyer.  Bryan Lawrence of Buchanan Ingersoll & Rooney PC represented the seller.

 

About The Edmonds Group, LLC
The Edmonds Group is a specialized investment bank focused on recurring revenue businesses with a particular emphasis on the security alarm industry.  The Edmonds Group has closed over 40 transactions representing more than $3 billion in transaction value since its inception in 2004.  For more information on The Edmonds Group, please visit www.theedmondsgroup.com.

 

About Kleinbard Bell & Brecker, LLP

Kleinbard is a law firm with a long-standing national practice in the electronic security industry with an emphasis on mergers and acquisitions.  For more information about KBB, please visit www.kleinbard.com.

 

About Buchanan Ingersoll & Rooney PC

Buchanan Ingersoll & Rooney PC is a national law firm with a well-established practice in the electronic security industry. The firm’s practice is multi-faceted and includes the representation of alarm companies, lenders, equity sponsors and others involved in the industry.  For more information about BIR, please visit www.bipc.com.

 

Tags: , , , , , , , , , , ,

Comments are closed.