CTSI to acquire AFA Protective Systems

Corbett Technology Solutions, Inc. (CTSI), a portfolio company of Wind Point Partners, recently announced that it has entered into an agreement to acquire AFA Protective Systems, Inc. Under the terms of the agreement, an affiliate of CTSI will commence a cash tender offer to acquire all outstanding shares of AFA common stock for $743.50 a share as of September 2.

Founded in 1873, AFA provides fire and security monitoring, service, and integration across the eastern United States. The company services over 28,000 customers throughout the East Coast via 17 branch locations with national account coverage throughout the United States.

Headquartered in Chantilly, Va., 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 audiovisual 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.”

AFA represents the fourth acquisition for CTSI since partnering with Wind Point in June 2020.

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