Wednesday, June 3, 2015

'Solid', 'not massive' profit on LifeShield deal; Hagan joins DirecTV

Says NewSpring's Mike DiPiano

'Solid', 'not massive' profit on LifeShield deal; Hagan joins DirecTV

UPDATE: "We made a profit on the deal and the [rate of return] is solid since we only held the investment for a short period of time," says Michael DiPiano, chief of NewSpring Capital, Radnor, of his company's investment in Langhorne-based alarm service LifeShield, sold yesterday to DirecTV for an undisclosed sum. 

"The company grew phenomenally during the hold, something like 8 times [annualized through 2013], but we received an unsolicited offer, and, after weighing all of the options, decided to sell. All of that said, it was not a massive return in terms of cash on cash."

LifeShield raised at least $18 million in 2010 and 2011. Other investors included FirstRound Capital, whose Philadelphia-based boss Josh Kopelman self-congratulated on the sale in a tweet earlier today but wouldn't talk about returns.

EARLIER: Satellite-TV giant DirecTV has purchased Langhorne-based home-alarm system LifeShield for an undisclosed sum, confirms DirecTV spokesman Robert Mercer. As my colleague Bob Fernandez notes, that makes DirecTV a competitor with cable-Internet-home alarm sales giant Comcast and others. 

ALSO: DirecTV will keep LifeShield's 105 employees and Langhorne offices, and boss Michael Hagan (ex of VerticalNet and NutriSystem) will stay in charge, says DirecTV's Mercer. "It's an exciting chapter. The DirectTV people are smart. We've gotten to know then over the last couple of years," through technology presentations, "and it heated up over the last couple of months. When you're partnered with the largest satellite-TV company in the country and they want to build out your service, that's a good thing."

About this blog

PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com, distefano251@gmail.com, 215.854.5194 or 302.652.2004.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano