Security Business

JUL 2019

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18 Security Business / www.SecurityInfoWatch.com / July 2019 SECURITY WATCH COMPILED BY PAUL ROTHMAN, EDITOR–IN–CHIEF Fresh Off the Wire / News from around the industry Vector Acquires ADS Security ADS to retain its brand identity, team to remain in their current roles In a move that will greatly expand the geographic footprint of two super-regional security companies, Vector Security has acquired Nashville-based ADS Security. The acquisition will significantly bolster Vector’s presence in the Southeast with the addition of branch locations in Alabama, Mississippi, Georgia, South Carolina, and Tennessee, while also expanding the market reach of both companies in North Carolina, Kentucky and Florida. The combined companies will have close to $20 million in recurring monthly revenue and a customer base of nearly 400,000 subscribers. Serving more than 100,000 businesses, industrial facilities, and residences throughout the Southeast, ADS Security has grown significantly over the past several years via an aggressive M&A strategy that has seen the company make more than 30 acquisitions since 2014. The ADS Security team will remain in their current roles, with John Cerasuolo leading the ADS division, reporting directly to Vector Security President and CEO Pam Petrow. ADS Security will also maintain their brand identity, becoming the fourth business unit under the Vector Security portfolio of companies. “We are excited by Vector Security’s financial resources and stable ownership that will continue to fuel our growth ambitions and acquisition activity,” Cerasuolo said in a statement. “We have similar cultures across both organizations and we look forward to leveraging the best of both companies.” “We are very impressed with the successes and market presence ADS has built over the years,” Petrow said in a statement. “We have a great opportunity to take best practices from two amazing companies and build the best sales and service organization across our expanded footprint.” ■ ADT Awarded $4M in Lawsuit against Alder Jury finds company liable for deceptive sales practices ADT has been awarded $3 million in compensatory damages and $1 million in punitive damages against Utah-based Alder Holdings LLC as a result of an unfair competition lawsuit against Alder for deceptive sales practices. The jury found that Alder engaged in, and was liable for, deceptive sales practices that misled hundreds of ADT customers. The case was tried in the U.S. District Court for the Southern District of Florida and concluded in May. “This jury verdict sends a clear message that deceptive sales practices in our industry are neither viable nor tolerable,” David Smail, ADT Executive Vice President and Chief Legal Officer said in a statement. “The few remaining companies that continue to deceive consumers to generate sales undermine the integrity and reputation of the many in the industry that are honest and compete fairly. At ADT, we are not only committed to protecting our customers, but also to continuing efforts to end deceptive sales practices in the security industry.” ADT has filed multiple lawsuits over recent years against security companies engaged in deceptive practices, and has obtained several permanent injunctions and recovered millions of dollars in settlements. ADT currently has a separate lawsuit pending against Alder for its failure to pay more than $2 million under the terms of a 2017 settlement agreement. “With the summer-selling season upon us, consumers need to be extra vigilant when any sales representative is at their front door,” Smail added. ■ UPCOMING INDUSTRY EVENTS July 29-31 Cyber:Secured Forum, Dallas www.cybersecuredforum.com August 11-17 ALOA 2019 Convention and Expo, Las Vegas www.aloa.org/convention/convention-aloa.html September 8-12 GSX 2019, Chicago www.gsx.org September 10-14 CEDIA Expo 2019, Denver www.cediaexpo.com September 15 Mission 500 Security Industry Softball Game, Ridgefield Park, N.J. www.firstgiving.com/event/ mission500/2019-Security-Softball-Game September 24 Medical Alert Financial Summit 2019, Chicago http://medicalalertfinancialsummit19. splashthat.com November 20-21 ISC East 2019, New York www.isceast.com

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