Protect America Inc., a consumer company selling alarm systems, has been sold to an investor group consisting of its founder, Rockbridge Growth Equity and Falcon Investments.

Terms of the deal were not disclosed and calls seeking comment were not acknowledged by press time.

Falcon Investments recently closed a fund for more than $725 million; it is the investment manager’s third mezzanine fund.

Prior to that, in January 2009, Rockbridge and Falcon teamed up with Northcentral University founder Dr. Donald Hecht to buy out the online university via NCU Holdings, a jointly-formed company similar to the one that will run Protect America.

Thad Paschall, the founder of Protect America, is also engaged in the investment with Rockbridge and Falcon.

CapitalSource Bank led the senior financing syndicate which included Bank of America Merrill Lynch and Goldman Sachs. Imperial Capital advised Protect America on the sale; Rooney & Associates also represented the Protect America. The company was founded in 1992 and is based in Texas.

On the transaction from Imperial was John E. Mack III, the firm's co-head of investment banking and head of M&A.

As consumers increasingly install alarms at properties, Mack said, this presents Protect America and similar companies with core growth opportunities.

Private equity sought to get into security businesses, both those dependent on federal contracts for revenue, as well as others, that did not necessarily look to derive the majority of their income from government contracts.

In November 2009, United Technologies Corp. agreed to purchase GE Security, GE's security systems unit, for $1.82 billion. In April, GTCR launched Six3 Systems, a defense technology platform company, led by former ManTech chief executive Robert Coleman. Last month, the platform company agreed to purchase BIT Systems, a technical surveillance company.

Additionally, GenNx360 Capital Partners closed its tender offer for shares of listed GVI Security Solutions Inc., a Texas-based company, in December.

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