A father and son team have led a management buy-in at Coventry-based DDD Security Systems, after securing £670,000 funding from Bank of Scotland Corporate.
DDD Security Systems provides residential, commercial and industrial sectors with products such as alarms, CCTV and access control.
John Henry and his son Michael have purchased 80 per cent of the company.
The previous owner, Geoff Blachford, has taken a step back from much of the major decision making and retains a 20 per cent share in the business. He remains involved in the organisation as chairman.
John and Michael also own security firm Crimson Solutions, which they set up in 2003.
John became interested in the electronic security market through working in the logistics industry for 30 years, where he oversaw the security of warehouse operations.
Michael has also worked in the logistics industry, as an operations manager, and spent time in the police force - giving him a great insight into security issues.
The security sector is an established market where the majority of business is won on reputation.
DDD Security Systems, established in 1968 and with a turnover of £1.12 million, claims to be one of the leading electronic security companies in the country.
John and Michael felt the opportunity for Crimson Solutions, a new name in the industry, to acquire DDD Security Systems was an opportunity not to be missed.
James Harris, director of new business at Bank of Scotland Corporate in Northampton, said: "We took the time to get to know John and Michael and were struck by their desire to make the deal work and work alongside the client to overcome any possible obstacles.
"John is also extremely ambitious to expand the business by concentrating on developing new products and services."
John, now managing director of DDD Security Systems, said: "The MBI was a big step for Michael and me."
He hopes to expand the product range and is exploring other products and services which would complement the business, enabling them to offer customers a complete security package.
While supplying the West Midlands and Worcestershire, John also hopes to expand DDD Security Systems and open further branches across the UK.
The next site may well be in Milton Keynes, where he is based and commutes from daily. He also aims to buy-out Mr Blachford's remaining 20 per cent stake in the next five years.