DALLAS, (GLOBE NEWSWIRE) -- Monitronics International, Inc. and its subsidiaries (OTC: SCTY) today announced that it has acquired approximately 114,000 residential alarm monitoring contracts from Protect America, Inc. totaling approximately $4.6 million in recurring monthly revenue.

Per the terms of the transaction, Brinks Home Security will take ownership of the alarm monitoring contracts at closing through an earnout structure that includes a $15.0 million upfront payment. For the first six months following the closing date (the “Initial Earnout Period”), the Company will pay a $5.00 monthly earnout payment per active account. For the remaining forty-four months immediately following the Initial Earnout Period, the Company will pay the seller a $25.00 monthly earnout payment per active account.

The Company acquired the accounts lien free at closing and, after month fifty, will have no further earnout obligation to the seller.

“This transaction fits neatly into our philosophy of acquiring profitable accounts at scale and holding them for life,” said Brinks Home Security Interim Chief Executive Officer, William Niles. “The Company will only make monthly earnout payments on active accounts with no payment required for non-pay or non-active customers, thus largely eliminating any related attrition risk. Further, the economic interests of the Company and the seller are aligned as both the Company and seller stand to benefit from Brinks Home Security’s award winning and best in class customer service.”

The transaction is supported by a majority of the Company’s first lien lenders who now enjoy an additional $4.6 million of RMR significantly enhancing their credit position.

About Brinks Home Security

Brinks Home Security (OTC: SCTY) is one of the largest home security and alarm monitoring companies in North America. Headquartered in the Dallas-Fort Worth area, Brinks Home Security secures approximately 940,000 residential and commercial customers through highly responsive, simple security solutions backed by expertly trained professionals. The company has one of the nation’s largest networks of independent authorized dealers and agents – providing products and support to customers in the U.S., Canada, and Puerto Rico – as well as direct-to-consumer sales of DIY and professionally installed products.