Electronic security and alarm systems
Aug 2012
Business Services

Pronet Güvenlik ('Pronet') is the leading Turkish electronic security systems company, primarily installing and monitoring residential and commercial alarm systems, as well as installing integrated electronic security systems. Established in 1995, it has 130,000 residential and commercial subscribers across Turkey and has a recurring revenue stream from its installed customer base. In the past four years, its subscriber base has grown by a CAGR of more than 30%.

Pronet is headquartered in Istanbul with operations across Turkey through dealer networks and its own regional direct sales offices in Ankara, Izmir, Antalya, and Bursa. It employs around 1,500 staff.

Investment case
The alarms monitoring market is a relatively resilient sector, with recurring revenues and strong growth prospects. Turkey also presents considerable opportunities given it has the second largest population and sixth largest economy in Europe with a strong medium-term GDP growth outlook and a low penetration of security alarms.

Cinven's Business Services team identified Pronet as an outstanding prospect and has followed the business over a long time period. In addition to operating in a relatively defensive sector, Pronet exemplifies Cinven's investment criteria in that it:

  • holds a clear market leading position as Turkey's leading security brand;
  • is the fastest growing company in its field in Europe;
  • delivers exceptional service quality with high customer satisfaction ratings; and
  • benefits from an experienced management team. 

Cinven, along with management, expects to bring in the international best practices to enhance customer service and drive profitable growth through expansion of Pronet's direct and indirect sales capabilities across Turkey, where market penetration remains relatively low compared to Europe and the US. Increasing penetration is supported by rising Turkish disposable income, favourable demographics, greater urbanisation and awareness of security risks.

Opportunities will also be reviewed to expand Pronet's business internationally in the surrounding regions of Eastern Europe, the Middle East and Asia.

Following Cinven's investment, Pronet has opened new regional direct sales offices in three new cities: Adana, Mersin and Izmit.

Cinven has also invested substantially in IT, systems, operations, after-sales services, and management.

In 2014, Pronet announced the closing of a new $100m debt financing package to support future growth.

Pronet's total subscriber number now exceeds 190,000.