An investment firm has announced it has purchased Florida-based Emergency Communications Network (also known by many as Code Red). The Riverside Company didn't say what it paid for ECN, but did say it will invest in "continuing product improvement, adding sales resources, strengthening the company's infrastructure and operations, and developing new operations". Otherwise, Riverside Partner Chris Jones told us "the transaction shouldn't cause any changes for customers or employees".
Riverside, which says it has $3-billion in capital to manage and has closed over 300 transactions in 23 years, is obviously keen on the emergency notification industry. Jones said they expect "emergency notification to remain an important part of broader public safety programs" and would like to build ECN through "complementary add-on acquisitions".
About buying ECN during a down economy, Jones said "ECN has continued to grow despite the soft economy".
Several companies claim to be the leader in the alert and notification space (and, Riverside's press release says ECN is the "clear market leader"). It hard to tell which of these companies is the largest revenue-wise as sales numbers are kept close to the vest. But, it sure seems like there are lots of news stories about Code Red these days...new customers, uses of the system, pleas to sign up for Code Red Alerts. Not a true indicator of leadership, but a Google news search showed 45 such articles in September. (That didn't include the ones about a computer virus named "code red" or something about the movie "A Few Good Men", and those in languages we don't understand.)
Sometimes it worries customers when they learn their vendor has been sold, but if Riverside does what it says it will do, this could be a good thing for ECN customers...in fact, for the industry as a whole. It doesn't hurt that people with lots of money are bullish - even when times are tight.
All the best,
Rick
www.galainsolutions.com
