Tupelo Data Room
Security
Active

Security Screening Infrastructure Platform — ~$3.9MM Adj. EBITDA

Texas, United States
Asking Price-
Revenue$14,300,000
EBITDA$3,900,000
Cash Flow$3,900,000
Description
Company Overview The Company is a leading provider of full-body contraband-detection systems and related security-screening solutions to U.S. government agencies. Its flagship low-dose X-ray platform detects concealed weapons, narcotics, cellphones and other contraband, supported by automatic threat-recognition software, operator training and technical service. Over its 14-year history, the Company has built an installed base of 800+ systems across 550+ federal, state and county agencies in 46 states. This entrenched footprint drives referrals, repeat equipment purchases, annual service contracts, software subscriptions and a growing replacement pipeline. Key KPIs - $14.3MM FY2025 revenue - $3.9MM FY2025 adjusted EBITDA - 27.2% adjusted EBITDA margin - 40% FY2025 adjusted EBITDA growth - 34% revenue CAGR and 49% EBITDA CAGR from FY2022–FY2025 - $3.4MM of recurring service and software revenue - 23% recurring-revenue mix - 94% customer retention - 800+ systems across 550+ agencies in 46 states - 44% gross margin - Debt-free, capital-light balance sheet Buy-and-Build Opportunity The Company can anchor a much larger security-screening infrastructure platform serving environments where people, packages or cargo pass through controlled entry points. - Expand beyond correctional facilities into courthouses, airports, logistics hubs, ports, government buildings, hospitals and public venues. - Acquire regional businesses that install, inspect and maintain personnel scanners, baggage and parcel X-ray systems, metal detectors, cargo-screening systems and related technologies. - Add recurring, contract-based revenue from maintenance, inspection, certification and operator training. - Build a national network of trained field technicians capable of servicing equipment from multiple manufacturers. - Gain proprietary visibility into thousands of aging machines approaching upgrade or replacement. - Cross-sell software, training and complementary screening products across the acquired customer base. - Convert competitor equipment serviced by the platform into future replacement opportunities. - Centralize dispatch, purchasing, inventory and contract administration to improve margins. - Offer customers a single lifecycle solution covering installation, maintenance, compliance, software, upgrades and replacement. Path to $10–20MM+ of EBITDA The Company has a credible path to approximately $10MM of EBITDA through continued equipment growth, greater service and software penetration, adjacent-product cross-selling and two to four service-oriented acquisitions. A broader consolidation strategy across parcel, baggage, cargo and personnel-screening services could combine $8–10MM of organic EBITDA with $7–10MM of acquired EBITDA and synergies, creating a national platform with $15–20MM+ of adjusted EBITDA and a materially higher recurring-revenue mix. The thesis is straightforward: acquire the trusted equipment anchor, consolidate the technicians and service contracts surrounding the installed market, and build the national lifecycle-services platform for security-screening infrastructure.
Related Categories
security business for Sale
Business for Sale in Texas
Asking Price-