Protection One announced that it is being sold to GTCR, a private equity firm based in Chicago, for $828 million, which includes refinancing of the company's large debt load.
With the completion of the sale in the second quarter, Protection One will become a private company.
New CEO Tim Whall on Monday said he doesn't foresee job cuts or office consolidations arising from the sale.
GTCR is interested in operating and expanding the company as is, rather than merging it with another alarm company to extract cost savings.
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GTCR likes the alarm monitoring business, Whall said, because of its steady growth and recurring revenues. It has owned two alarm monitoring companies in the past, which Whall ran, but doesn't own one now.
"This is not about synergies," he said. "This will be stand alone."
A GTCR affiliate will make the formal offer on May 3 to acquire all of the outstanding common stock of Protection One for $15.50 a share.
That is a 13 percent premium over the April 23 closing stock price of $13.76, and 118 percent above the $7.10 closing stock price of January 19, the day before Protection One announced it was seeking a buyer.
Quadrangle Partners and Monarch Capital Partners, which own 60 percent of the fully-diluted Protection One shares, have agreed to sell.
Protection One is the third largest provider of alarm monitoring in the country. Although headquartered in Lawrence, its largest facilities are in Wichita.
GTCR, with more than $8 billion in capital, owns a range of companies including other alarm monitoring companies.
"We are thrilled to be involved in the security alarm monitoring industry for a third time in the past ten years," said David A. Donnini, principal of GTCR. "We look forward to building on the strong base of business established by Protection One's top-quality team of employees, while continuing to provide great service to Protection One's customers."