APi Group Deepens Midwest Reach with CertaSite Safety Services Buyout
- $90 million: CertaSite's projected 2025 revenue
- 60%: APi's target for inspection, service, and monitoring revenue by 2028
- 16%+: APi's adjusted EBITDA margin goal by 2028
Experts would likely conclude that this acquisition strengthens APi Group's market position by expanding its Midwest footprint and aligning with its strategic growth framework, while addressing the increasing demand for consolidated safety services.
APi Group Deepens Midwest Reach with CertaSite Safety Services Buyout
NEW BRIGHTON, MN – February 03, 2026 – APi Group Corporation (NYSE: APG), a global leader in business services, has finalized its acquisition of CertaSite, a prominent Midwest provider of fire and life safety services. The deal, completed on February 2, 2026, marks a significant strategic move for APi, reinforcing its market dominance and accelerating its growth strategy centered on high-value, recurring revenue streams.
The acquisition integrates CertaSite, known for its effective “inspection-first” business model, into APi’s extensive portfolio of safety, security, and specialty services. This move is expected to immediately bolster APi’s presence across key Midwest markets, including cities in Ohio, Michigan, Indiana, and Wisconsin, while enhancing its service capabilities for national and multi-site clients.
A Strategic Play in a Fragmented Market
The fire and life safety (F&LS) sector is a vast and highly fragmented landscape, characterized by a multitude of local and regional operators. For a global player like APi Group, this fragmentation presents a continuous opportunity for strategic consolidation. The acquisition of CertaSite is a textbook example of APi’s long-standing M&A playbook, which has fueled its growth for over two decades by selectively acquiring companies that offer both strategic fit and financial accretion.
By absorbing CertaSite, APi gains significant geographic density in the Midwest, a region critical for commercial, industrial, and institutional clients. CertaSite's established operations in cities like Detroit, Indianapolis, and Milwaukee fill crucial gaps in APi's service map. This increased density not only strengthens its market position against regional competitors but also drives operational efficiency. With more technicians and resources concentrated in the area, the company can reduce travel times and lower the “truck roll costs” associated with each service call, ultimately improving margins and service responsiveness.
Furthermore, this enhanced regional footprint makes APi a more formidable competitor for large-scale national contracts. Customers with facilities spread across the country are increasingly seeking single-source providers who can offer consistent, high-quality service and simplified compliance management. The addition of CertaSite’s network directly addresses this demand, strengthening APi’s value proposition in national RFPs.
The 'Inspection-First' Engine for Growth
At the heart of the deal's strategic value is CertaSite's specialized business model. Founded in 2018, CertaSite built its reputation and a projected $90 million in 2025 revenue on an “inspection-first” strategy. This approach prioritizes the non-discretionary, regulatory-mandated inspections of fire alarms, sprinkler systems, and other safety equipment. These inspections serve as the entry point to building long-term customer relationships and generating a stable, predictable stream of recurring revenue.
This model aligns perfectly with APi's own “inspection-first flywheel strategy” and its ambitious '10/16/60+' shareholder value creation framework. Unveiled in May 2025, this framework sets clear targets for 2028: achieving over $10 billion in net revenues, reaching an adjusted EBITDA margin of 16% or more, and deriving over 60% of its revenue from inspection, service, and monitoring activities.
The CertaSite acquisition is expected to be immediately accretive to this framework. CertaSite's strong EBITDA margin profile and asset-light operations contribute directly to APi's 16%+ margin goal. More importantly, its deep focus on inspection and service revenue will accelerate APi’s push toward the 60% target, shifting the company’s revenue mix further towards more profitable and predictable service-based work.
Bolstering a Critical Infrastructure Service
Beyond the financial and strategic metrics, this acquisition underscores the growing importance of the fire and life safety industry itself. In an environment of increasing regulatory complexity and a low tolerance for risk, businesses across all sectors are placing a higher premium on expert safety compliance. This is especially true in critical industries like healthcare, data centers, advanced manufacturing, and aviation, where safety and operational continuity are paramount.
Facility managers and environmental health & safety leaders in these sectors require more than just a vendor; they need a trusted partner who can navigate complex codes, ensure uninterrupted compliance, and provide rapid, reliable service. The consolidation of specialized providers like CertaSite into a global leader like APi is a direct response to this market need. The merger combines CertaSite's regional expertise and customer relationships with APi’s global scale, resources, and broader service offerings, creating a more robust service platform for clients.
By integrating CertaSite, APi is better positioned to deliver a consistent standard of excellence across a wider geography, providing peace of mind to customers who cannot afford a lapse in safety protocols. This move enhances the critical infrastructure of public and commercial safety, ensuring that buildings are safer and businesses remain compliant.
Integration and Future Outlook
With the deal now closed, the focus shifts to integration and realizing the anticipated synergies. APi’s leadership has signaled a clear intention to preserve and build upon the strengths that made CertaSite an attractive target. In a statement, APi President and CEO Russ Becker emphasized a collaborative approach.
“We welcome our new CertaSite teammates to the APi family,” Becker stated. “We are uniquely positioned to partner with CertaSite to accelerate its people-first and inspection-first strategies, and we can’t wait to get to work pursuing the opportunities and synergies this acquisition will provide.”
Becker's specific mention of CertaSite’s “people-first” strategy indicates an awareness that successful integration goes beyond systems and processes. Retaining CertaSite’s skilled technicians and experienced leadership will be crucial for maintaining service quality and customer relationships. For CertaSite employees, the acquisition could open doors to greater career opportunities within APi's vast global network of over 500 locations.
Looking ahead, APi Group begins 2026 on strong footing. As noted by Becker, the company has a “strong balance sheet and a robust M&A pipeline,” suggesting that the CertaSite acquisition is another step in a continuous journey of strategic growth rather than a final destination. The company will likely continue to pursue similar accretive acquisitions, further consolidating the fragmented safety services market and expanding its leadership position.
📝 This article is still being updated
Are you a relevant expert who could contribute your opinion or insights to this article? We'd love to hear from you. We will give you full credit for your contribution.
Contribute Your Expertise →