ABS Capital Partners Backed Alarm.com Holdings Closes $136 Million Share Offering

Tim McAdam

Alarm.com Holdings Inc., the holding company for the eponymous wireless security provider, has closed a $136 million share offering, raising the amount from three investors including Technology Crossover Ventures.

The Vienna, Va.-based holding company for Alarm.com, a spinoff of MicroStrategy Inc. (Nasdaq: MSTR), did not name the investors in its SEC filing but named Tim McAdam of Palo Alto, Calif.-based Technology Crossover as a director.

Alarm.com did not share any details of the transaction but it is likely that Technology Crossover acquired at least part of the shares from ABS Capital Partners, with offices in Baltimore and San Francisco.

Last month, Dow Jones reported that Technology Crossover was in talks with ABS to acquire a minority stake in Alarm.com Holdings. Also, Alarm.com, in its filing, said, it would use up to $9.24 million from the gross proceeds to pay for shares repurchased in a tender offer.

Alarm.com sells wireless security systems and home energy management systems that can be remotely controlled by smartphones. Last month, it said it reached 1 million subscribers for its services.

In 2009, ABS Capital Partners led a $27.70 million buyout of the firm from majority owner MicroStrategy. Other investors in that buyout included Equis Capital, of Hoboken, N.J., and Alarm.com CEO Steve Trundle.

Other investors in Alarm.com include New York-based Egis Capital Partners LLC and Tarpon Towers LLC, of Bradenton, Florida.

According to a Dow Jones report last month, Alarm.com had revenue of $16.4 million for the nine months ended September 2008, up from $12.9 million a year earlier. The figures for the privately held firm came from an SEC filing by MicroStrategy.

Principals named in the Reg D filing by Alarm.com Holdings are:

·         CEO Stephen Trundle;
·         Executive officer Jennifer Moyer;
·         Executive officer Daniel Ramos;
·         Executive officer Jean-Paul Martin;
·         Executive officer Alison Slavin; and
·         Executive officer David Hutz.

Also named in the filing were the following directors

·         Ralph Terkowitz of ABS Capital Partners;
·         Tim McAdam of Technology Crossover Ventures; and
·         Hugh Panero, CEO of online music platform Popdust and former CEO of XM Satellite Radio.

Alarm.com Holdings said it would pay sales commissions of $1.52 million to two firms – StifelNicolaus & Company Inc., of St. Louis, Mo., and Los Angeles-based Imperial Capital LLC.

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