Ascent Capital Group Subsidiary To Acquire Security Networks - Quick Facts

(RTTNews) - Ascent Capital Group, Inc., (ASCMA) announced that its primary operating subsidiary, Monitronics International, Inc., has signed a definitive agreement to acquire Security Networks, LLC.

The transaction consideration will consist of $487.5 million of cash and 253,333 newly issued shares of Ascent Series A common stock with an agreed value of $20 million, the company said.

The company stated that the purchase price is subject to adjustment at closing and is based upon Security Networks delivering recurring monthly revenue of $8.8 million. The transaction will be financed primarily with new debt at the Ascent and Monitronics levels, as well as an incremental amount of cash from Ascent's balance sheet. The transaction is expected to close in mid-August 2013.

Following the close of the transaction, the combined companies will be headquartered in Dallas, Texas with Mike Haislip serving as CEO.