CTSI to Acquire AFA Protective Systems

Rhea-AI Summary

Corbett Technology Solutions, Inc. (CTSI) has announced a definitive agreement to acquire AFA Protective Systems, Inc. (AFAP) for $743.50 per share. This acquisition, aimed at enhancing CTSI's fire, security, and communication services, is expected to open new opportunities for customers and employees. Founded in 1873, AFA serves over 28,000 clients along the East Coast and brings extensive industry experience. This marks CTSI's fourth acquisition since partnering with Wind Point Partners in June 2020, aligning with their growth strategy focused on life safety and security solutions.

Positive

• Acquisition of AFA for $743.50 per share enhances CTSI's service offerings.
• AFA brings over 28,000 customers and significant industry experience.
• Deal expected to create new opportunities for customers and employees.
• Fourth acquisition since Wind Point partnership, indicating ongoing growth strategy.

Negative

• None.

CHANTILLY, Va., Sept. 3, 2021 /PRNewswire/ -- Corbett Technology Solutions, Inc. ("CTSI"), a portfolio company of Wind Point Partners ("Wind Point"), is pleased to announce it has entered into a definitive agreement to acquire AFA Protective Systems, Inc. ("AFA" or the "Company"), an industry leader in the design, installation, and service of state-of-the-art fire and security systems. Under the terms of the merger agreement, an affiliate of CTSI will commence a cash tender offer to acquire all outstanding shares of AFA common stock (symbol: AFAP) for $743.50 a share as of September 2, 2021.

Founded in 1873, AFA has provided uninterrupted central station alarm service for longer than anyone in the industry. The Kleinman family acquired a controlling interest in AFA in 1968, and over the past 50 years developed the Company into the premier fire and security monitoring, service, and integration firm across the eastern United States. Today, AFA services over 28,000 customers throughout the East Coast via 17 branch locations with national account coverage throughout the United States.

Headquartered in Chantilly, Virginia, CTSI designs, engineers, installs, and maintains highly engineered nurse call, audiovisual, conferencing, collaboration, sound, fire, security, and communication systems. CTSI serves thousands of private, public, and institutional clients.

"We are extremely excited to have AFA join the CTSI family," said Joe Oliveri, CTSI President and CEO. "AFA's team has established a world-class business with a renowned reputation that has flourished over a half century under the ownership of the Kleinman family. We look forward to further supporting AFA's best-in-class service offerings using our increased scale to provide opportunities for both customers and employees alike."

Nathan Brown, Wind Point Managing Director, added, "AFA is a transformational addition to the CTSI platform. The combined business forms a best-in-class fire, security, nurse call, and design-build audio visual platform with capabilities to service any highly engineered low voltage needs. The AFA brand is synonymous with excellence and the combination with CTSI will benefit all stakeholders across both companies."

Robert Kleinman, AFA's Chairman and CEO, commented, "This transaction is a win for all parties. CTSI's added resources and similar services, combined with the geographical fit and customer relationships of both companies, should open new opportunities to deliver AFA's capabilities to an even broader audience of customers. In turn, CTSI will be able to provide enhanced offerings to AFA's existing account base, as well as new opportunities for many individuals across AFA's team. Finally, we are confident that we have maximized the return to our shareholders, most of whom have been with and supported us for many decades."

"We are excited about AFA joining with Joe Oliveri and the CTSI team." added Richard Kleinman, AFA's President and Chief Operating Officer. "By the companies working together, we will each be able to offer our customers an enhanced list of services. Also very important to us was that CTSI recognized the importance of AFA's legacy as the country's oldest surviving central station alarm company, our commitment to codes and standards complying systems, and CTSI's desire to preserve that legacy by keeping the AFA corporate entity intact. We believe this deal is good for AFA's customers, its employees, and its shareholders."

AFA represents the fourth acquisition for CTSI since partnering with Wind Point in June 2020. CTSI's acquisition strategy will continue to focus on acquiring leading life safety, security, nurse call, collaboration, and communication solution providers with complementary employee-focused cultures and a trusted commitment to customers.

Mesirow acted as financial advisor to AFA. Winston & Strawn LLP served as legal counsel to CTSI and Killeen Law served as legal counsel to AFA.

The closing of the transaction is subject to certain regulatory approvals and other customary closing conditions.

About AFA Protective Systems
Established in 1873, AFA is the oldest continuously operating alarm company in the United States, with offices throughout the East Coast and with service capability throughout the country through its National Accounts Division.

Additional information about AFA is available at www.afap.com

About CTSI
For over five decades, CTSI has been at the forefront of technology integration and innovation with critical communications, collaboration, audiovisual and security solutions for enterprise, government, healthcare and education customers. With an engineering-driven culture, we deliver best-in-class solutions and services with highly trained, lean-certified user experience practitioners, programmers, technicians, engineers and customer care representatives. CTSI delivers unmatched design, installation, integration and managed and subscription services that deliver high-quality, end-to-end results tailored to customers' unique needs and challenges.

Additional information about CTSI is available at www.ctsi-usa.com

About Wind Point Partners
Wind Point Partners is a Chicago-based private equity investment firm with approximately $4 billion in assets under management. Wind Point focuses on partnering with top caliber management teams to acquire well-positioned middle market businesses where it can establish a clear path to value creation. The firm targets investments in the consumer products, industrial products and business services sectors. Wind Point is currently investing out of Wind Point Partners IX, a $1.5 billion fund that was initiated in 2019.

Additional information about Wind Point is available at www.windpointpartners.com

Media Contact:
Alan Rosenkoff, CTSI
Phone: 908-229-1116
Email: Arosenkoff@ctsi-usa.com

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SOURCE CTSI

FAQ

What is the acquisition price for AFA Protective Systems by CTSI?

CTSI is acquiring AFA Protective Systems for $743.50 per share.

When was the acquisition of AFA Protective Systems announced?

The acquisition was announced on September 3, 2021.

What does AFA Protective Systems do?

AFA is an industry leader in fire and security system design, installation, and service.

How will the acquisition impact AFA's customers?

The acquisition is expected to enhance services for AFA's existing customer base and expand offerings.

Who acted as financial advisor for AFA during the acquisition?

Mesirow acted as the financial advisor for AFA in this transaction.