Kastle: All Systems Go
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By Hanna Aronovich   
Thursday, 28 February 2008
smc Kastle Systems says its security systems run efficiently and accomplish exactly what its customers need.
Kastle Systems says its security systems run efficiently and accomplish exactly what its customers need.


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A security system from Kastle Systems International LLC is unlike any other security system on the market – mainly because each system, customized to meet a customer’s unique needs, is run remotely, President Gene Samburg explains. Whatever a client’s security needs may be, “we will go to the ends of the earth to find a solution, then operate it for him to ensure these needs are met,” he stresses.

“And, if current solutions are not available,” Samburg continues, “we will work with our technology to develop new solutions to deliver exactly what makes sense for the client.”

Unlike standard security systems that often are like “three-legged horses” and don’t run properly, Samburg says Kastle has “sleek greyhounds” that run efficiently and accomplish exactly what the customer needs.

Founded in 1972, Kastle operates from its headquarters in Arlington, Va., and regional offices in Houston, Philadelphia, Dallas, Los Angeles, New York and Chicago. It also has an overseas operation in Sydney, Australia.

Kastle provides security systems and remote monitoring to more than 1,800 properties – primarily commercial office buildings. However, Samburg says the company is expanding its client base to include more multitenant buildings, hospitals, assisted-living facilities and government sites.

Pioneering a Concept
Kastle pioneered turnkey outsourcing of security system management. The company not only develops and manufactures a tailored security system for its clients, but it also programs, administers, operates and monitors the system full-time.

“We do everything from soup to nuts,” Samburg says. “When the client outsources the operation to us, they get the advantage of a more efficient, lower-cost and more robust security system. Since we are operating every aspect of the security system, clients can focus full-time on their business. “The only time our system isn’t chosen over a standard security system is when the client doesn’t really understand what we do and the value of what we provide,” Samburg says.

Because a prospect’s understanding of the value of what Kastle provides is so important, the company spends weeks training its sales associates.

Although a background in engineering is not essential for the sales team, a firm understanding of the concept and the returns it provides is essential.

Kastle’s innovations allow a client’s traveling employees to use a single card to access both offices and buildings in multiple cities; simplified and expedited visitor processing; and security via a low-cost, high-speed Internet connection to Kastle’s offsite operations centers. Samburg notes that Kastle has been working with many of the same customers for more than 35 years.

Expanding Operations
Although Kastle already provides a full suite of services, the company is looking to expand its offerings. To accelerate its growth, early this year, Kastle went from being privately owned to selling its operations to Mark Ein, a venture capitalist and entrepreneur. Samburg says the transaction has “injected a lot of excitement and activity into the company.”

Ein is the founder and CEO of Venturehouse Holdings LLC, a holding company that creates, invests in and grows technology and telecommunications companies in partnership with management. Venturehouse’s prior investments include the initial seed investment in Matrics Technology, the lead investment in the acquisitions of Cibernet Corp. and VSGi and an early investment in XM Satellite Radio. “Over the last 34 years, Kastle has grown steadily and profitably, with sales growing at a compounded annual rate of 20.1 percent over its lifetime, to become one of the preeminent building security systems providers in the United States,” Ein said in a statement. “With security concerns fueling increased demand for expert security services, we look forward to Kastle growing and expanding to meet our clients’ urgent needs not only in the United States but also internationally.”

Samburg will remain in charge of Kastle’s operations and the company’s strategy will remain full-growth ahead. “Gene and I have told Kastle’s employees exactly what the plan is going forward: greater growth in the company, more investment in domestic and foreign markets, and continuity in Kastle’s leadership and service for our private sector and government clients,” Ein says.

“By completing this transaction with Mark Ein, who has a strong track record of growing successful and innovative companies, Kastle will provide new products and higher levels of service to our existing clients and to new clients in new markets,” Samburg added, noting that the company’s long-term goal is to “cover the whole world with as broad an offering as our customers need.”

 
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