Diebold’s QSI Security buy could be one of many

Tuesday, July 1, 2003

LONDONDERRY, N.H. - In what could be the first of several acquisitions in the coming months, systems integrator Diebold acquired QSI Security last week as part of plans to bring additional growth to the company.

The purchase of QSI Security, a seven-year-old systems integrator proficient in the surveillance market, marks Diebold’s first acquisition since it bought the assets of now-defunct Mosler more than a year ago. Company officials did not release the purchase price for QSI Security or its size.

“It wouldn’t surprise me to see Die-bold do more of these deals down the road,” said Analyst Matt Summerville, vice president of equity research for McDonald Investments, Cleveland.

Though mostly focused on installing surveillance systems, QSI Security also offered clients access control systems. The company’s primary market has been the financial community and providing service in Maine, New Hampshire and Massachusetts.

Richard Baggot, vice president of electronic security and currency systems group for Die-bold, said QSI provides Diebold with a wealth of knowledge.

“What it brings for Diebold is additional revenue, but more importantly all their associates were offered positions with Diebold,” he said. “There’s a lot of expertise with regards to those QSI associates on the product side of the house,” said Baggot.

The former owner of QSI, John Mor-akis, declined to comment beyond a company-issued press release.

Now with QSI Security’s expertise and customer base, Diebold intends to offer additional services, such as alarm systems and alarm monitoring through its UL central station. Until now, QSI did not offer those services to its customers.

Baggot said Diebold plans to retain QSI Security’s office here, and ensure the same technicians who service QSI Security’s customers today continue to do so to maintain relationships with customers.