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APi Group Acquires CertaSite to Boost Recurring Revenue Strategy

MarketDash Editorial Team
1 hour ago
APi Group is buying Midwest fire safety specialist CertaSite in a deal designed to shift more of its business toward predictable, compliance-driven inspection and service work.

APi Group Corporation (APG) has agreed to acquire CertaSite, a fire and life safety provider focused on inspections across the Midwest, as part of its broader push to build a business model centered on recurring, compliance-driven revenue.

The transaction is expected to close in the first quarter of 2026, subject to regulatory approval and standard closing conditions. APi plans to pay for the deal using cash on hand, which stood at $555 million as of September 30, 2025.

CertaSite should bring in approximately $90 million in revenue this year, and management believes the acquisition will support APi's "10/16/60+" long-term targets. The company operates an asset-light model that generates strong margins and cash flow—exactly the kind of profile APi wants as it shifts away from project-based work toward predictable, recurring income streams.

The strategic logic here is pretty straightforward. APi wants more of its revenue to come from inspection, service, and monitoring activities rather than one-off construction or installation projects. Management has set a long-term goal of having 60% of revenue tied to those recurring services, and CertaSite's inspection-first business model fits that vision perfectly.

APi president and CEO Russ Becker said, "CertaSite's inspection-first business model aligns with our inspection-first flywheel strategy and is expected to contribute meaningfully to our long-term 60% business mix target. We look forward to partnering with our CertaSite teammates to achieve the opportunities created by this acquisition for both our organizations."

CertaSite CEO Jeff Wyatt called the agreement a "transformative milestone," highlighting that the company has built its customer base around recurring inspections and service work since 2018.

Looking Ahead to 2026

With about a month left in 2025, Becker said APi is heading into the new year with "strong momentum" and expects to hit its full-year targets. The company anticipates that 2025 net revenues and adjusted EBITDA will land at or above the midpoint of its October 30, 2025 guidance—that's $7,875 million in net revenues and $1,030 million in adjusted EBITDA.

APi also expects its net leverage ratio to finish the year below 2.0x, which gives it plenty of financial flexibility to fund deals like CertaSite without stretching its balance sheet.

APG Price Action: APi Group shares were up 3.12% at $38.87 at the time of publication on Wednesday. The stock is trading near its 52-week high of $39.65.

Back to News

APi Group Acquires CertaSite to Boost Recurring Revenue Strategy

MarketDash Editorial Team
1 hour ago
APi Group is buying Midwest fire safety specialist CertaSite in a deal designed to shift more of its business toward predictable, compliance-driven inspection and service work.

APi Group Corporation (APG) has agreed to acquire CertaSite, a fire and life safety provider focused on inspections across the Midwest, as part of its broader push to build a business model centered on recurring, compliance-driven revenue.

The transaction is expected to close in the first quarter of 2026, subject to regulatory approval and standard closing conditions. APi plans to pay for the deal using cash on hand, which stood at $555 million as of September 30, 2025.

CertaSite should bring in approximately $90 million in revenue this year, and management believes the acquisition will support APi's "10/16/60+" long-term targets. The company operates an asset-light model that generates strong margins and cash flow—exactly the kind of profile APi wants as it shifts away from project-based work toward predictable, recurring income streams.

The strategic logic here is pretty straightforward. APi wants more of its revenue to come from inspection, service, and monitoring activities rather than one-off construction or installation projects. Management has set a long-term goal of having 60% of revenue tied to those recurring services, and CertaSite's inspection-first business model fits that vision perfectly.

APi president and CEO Russ Becker said, "CertaSite's inspection-first business model aligns with our inspection-first flywheel strategy and is expected to contribute meaningfully to our long-term 60% business mix target. We look forward to partnering with our CertaSite teammates to achieve the opportunities created by this acquisition for both our organizations."

CertaSite CEO Jeff Wyatt called the agreement a "transformative milestone," highlighting that the company has built its customer base around recurring inspections and service work since 2018.

Looking Ahead to 2026

With about a month left in 2025, Becker said APi is heading into the new year with "strong momentum" and expects to hit its full-year targets. The company anticipates that 2025 net revenues and adjusted EBITDA will land at or above the midpoint of its October 30, 2025 guidance—that's $7,875 million in net revenues and $1,030 million in adjusted EBITDA.

APi also expects its net leverage ratio to finish the year below 2.0x, which gives it plenty of financial flexibility to fund deals like CertaSite without stretching its balance sheet.

APG Price Action: APi Group shares were up 3.12% at $38.87 at the time of publication on Wednesday. The stock is trading near its 52-week high of $39.65.