Monitronics International Acquires 93,000 High Quality Subscriber Accounts
Ascent Capital Group, Inc. has announced that its subsidiary, Monitronics International, Inc., has acquired approximately 93,000 recently created subscriber accounts.
The recently acquired subscriber accounts for Monitronics represents $4.4 million of gross recurring monthly revenue (“RMR”) from Pinnacle Security for a purchase price of $131 million. Pinnacle is not responsible for post-acquisition attrition or service. The accounts have approximately 75% penetration of interactive services.
“We are pleased to have completed this significant transaction that will serve to drive strong growth in revenue, adjusted EBITDA and RMR,” said Mike Haislip, Chief Executive Officer of Monitronics. “We can integrate these accounts with significant operating leverage which will provide strong incremental cash flow. The quality of the acquired accounts and the high rate of interactive service penetration also make these an attractive addition to our portfolio. Further, as part of the transaction, Monitronics and Pinnacle have established a continuing relationship which should augment our ongoing account creation for several years to come.”
Monitronics used its existing revolving credit facility and issued $30 million of incremental Term B debt to fund the acquisition. The Company expects to refinance the revolver through a new Senior Secured Term B offering.