Security Dealer & Integrator

NOV 2018

Find news and information for the executive corporate security director, CSO, facility manager and assets protection manager on issues of policy, products, incidents, risk management, threat assessments and preparedness.

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10 Security Dealer & Integrator / www.SecurityInfoWatch.com November 2018 SECURITY WATCH BY PAUL ROTHMAN Top Story ADT Acquires Red Hawk Acquisition moves company into fire services market; expands its commercial business to 25% of total revenue ADT has agreed to acquire Boca Raton, Fla.-based Red Hawk Fire & Security for $317.5 million, vastly accelerating ADT’s growth in the commercial security market. The acquisition expands ADT’s product portfolio into commercial fire safety-related solutions, and the company said in a statement that commercial security now represents a quarter of the company’s overall revenue, estimated at $4 billion. According to a press release, “It is the latest in a series of strategic acquisitions to drive commercial growth and build on ADT’s foundation of superior customer service. With Red Hawk, ADT will have an increased geographic footprint and enhanced customer service capabilities. Revenues from the combined company’s business customers are expected to represent approximately 25 percent of total revenue.” The release continues: “Red Hawk represents one of the few last independent large national commercial integrators, offering complex, mission-critical solutions across its 45 district locations and is expected to generate approximately $300 million of revenues in 2018.” In recent years, Red Hawk has posted double-digit revenue growth across a diverse set of customers, markets and geographies. In SD&I’s annual Fast50 ranking of the fastest-growing security integrators, Red Hawk ranked No. 24 in 2018, No. 45 in 2017 and No. 43 in 2016 (learn more about the Fast50, which opens for entries in late December, at www.securityinfowatch.com/sdifast50). “Commercial security is one of the core pillars of ADT’s growth strategy and today’s announcement marks a significant step in our concerted efforts to expand our commercial business,” said ADT President and incoming CEO Jim DeVries. “Red Hawk’s portfolio of commercial fire and security solutions complements ADT’s existing commercial business, positioning us to provide a superior customer experience at a local and national level.” Said Red Hawk President and CEO Michael McWilliams: “We are delighted to join with ADT’s resources, growth potential and shared commitment to providing high quality customer service and innovative solutions.” Since Aug. 2017, ADT has acquired seven commercial integration companies, including Aronson Security Group (ASG), Access Systems Integration (ASI), ACME Security Systems, Protec Inc., MSE Corporate Security and Gaston Security. In fact, the company recently announced the launch of advanced enterprise security risk management services (ESRM) and a 24/7 help desk for end-user and technician support. The ESRM is driven by ADT’s Enterprise Security Risk Group (eSRG), which independently assesses a client’s risk and works them to develop a value-based security program, create a technology roadmap and provide managed services to help augment the customer’s internal staff.■ Resideo Now a Standalone Company With spin-off from Honeywell now complete, company launches on NYSE Honeywell has completed its spin-off of Resideo Technologies, Honeywell’s former Homes and ADI Global Distribution business. Resideo shares began trading on the New York Stock Exchange under the symbol REZI. “The spin-off of Resideo marks the completion of the portfolio transformation that we initiated last year, leaving us in an even stronger position with a more focused and growth-oriented portfolio,” Honeywell Chairman and CEO Darius Adamczyk said in a statement. While the smart home products and ADI business moves, Honeywell’s commercial security and fire businesses will remain under the company brand and name. Resideo is the second spin-off Honeywell has completed this year; the first was the spin-off of Garrett Motion Inc., Honeywell’s former Transportation Systems business, which was completed Oct. 1.

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