Alarm.com Acquires OpenEye

Published Oct 21, 2019 21:56 PM

Alarm.com is targeting commercial expansion and now they have a commercial cloud VMS with the acquisition of OpenEye.

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In this note, based on speaking with executives at both companies, we examine the pros and cons of the acquisition, how it impacts Alarm.com in the commercial space and what it does for OpenEye.

For background on OpenEye, see our OpenEye Apex Cloud VMS Test Results.

Financials / *********

***** *** ************ *** *** ******** revenue *** ***** ****, ** ***** expect ** ** ** ** *** $50 ** $*** ******* ***** ***** on ********** ******* ******* ** *** low **** ** ********. ******* *** not ** **** ** ** *********** and *****.*** *** * ****** ****** valuation ** *****.*** ***** **** ** and ***** ****** ****** * ******* for *******.

****** - ******* *** ****** ** ~$72 ******* ** *** ****, **** Alarm.com ****** $**.* ******* *** ** 85% *****. ************, "** ****-*** ** up ** ** ********** $**.* ******* is ******* ** ******* ******** **** targets *** ***."

Fit *****

** ***** *** *** ** *****. Alarm.com ****** * ********** *** ******** to ****** ****** *** ***** ** commercial *********. ******* ****** ******* *** can ******* **** * ****** ******* to **** *** ********.

********, *** *** **** * **** shot ** ******** * ***** ****** in *** ********** ******.

OpenEye ********** ******* *****, ** **** ****-****

*** ******** ******* ** **** **** is **** ** ** * "********-***** acquisition", *** * ***% ***********, **** OpenEye ***** ********* * ******** *****. OpenEye **** **** ***** **** *********** in *** ****** ** *** **** term. ** ** **** ********** *** Alarm.com ******* ******* ***** **** ****** incentives ** **** *** **** *** business.

Brand, ********, ********** *******

*****.*** **** ****:

******* **** ** * ********** ** Alarm.com. *** ******* **** ******** ********** under *** ******* ***** *** ** led ** *** ******** ********** ****.

**** ** ********** ** ** ***** OpenEye ** ********* **** ******** *****, their ******** **** **** **** ******* since ******* (~** *****) *** ** do *** ****** ** ** *** type *** **** ** ******* ***** something ***.

** ** ********** ** ******* *** future, *** **** ***** **** *** type ** **** ***** ********** ***** indefinitely ****** ******** ***** **** **** as **** ** **** *** (*.*.,*****/****).

Giant ** ***********

*****.*** ** * ***** ****** ** residential, **** **** * ******* *********** and **** $*** ******* ** ****** revenue ******* ~**% ********:

IPVM Image

*** * ***** ***** ** **********, Alarm.com's ******* ** ***** ** ********'* ~$500 *******.

Minor ** **********

***** *****.***'* ******* ** ***** ** Avigilon's *******, *****.*** ** ** ************* player ** **********, ****** ******* ** and ******* *** ****** *** ** their ********* ** ***********.

*** ****** ** ********** *** *****.*** is **** ** ** * ***** market (**** ** ****** ** ******* depending ** *** ** ** *******) and ** ** *** ************ ****** to *** *****.

********* ******* *** ***** *****.*** * base ****** *** ********** ****** ** grow.

Funding *******, ***** ******, **** ******

*****.*** ** ******* ** ***-***** ******, not ******* *** *********. ******* ********* excitement ***** *** ********* **** *****.*** is ******* ** *** *** ******* to ************* ****** ***** ***** ********* engineering *** *****.

Relationship ** ******-* *** ***********

**** ** *** *** ***** ******* acquisition *****.*** *** ****. ** ****,*****.*** ******** ******-*, **** ***** ** ** **** AVHS *******. **** *** *** ****** a *********** *****.*** ********. **** ********,*****.*** ******** ****** *****'* *&* ****, * **** **** ******** ** their ****** ***** ***** ********* ********. We ** *** *** *** ******** with ******-* *** ***** ** ********* for ***** ***** ***** ***** ********* with *******, *** ** *** * specialist ** *********.

Competitive ***** **********

******* ** *** **** ********** *********** for *****.***'* ********** *********. *** *******, in ******** **** ****** ** ******* *****.***, Arcules, ***** ***, *******, ******* *** Verkada.*****.*** ****** **** **********,******* ** (* ***********) **** ** Milestone, ***** / ***** *** ***** have ******** ** *********** *******, ******* is **** ******* ******* *** ******* would **** ******** (******** *********).

Outlook - ******** *** *** ******?

*** *** ********* *** ****** ********* better *** *** ***********. *** *** question ** *** ****** ** *** they *** ****** ** **********. ******* has ********* **** ******* ***** **** out ***** *** ************ *********. *****.*** has ***** **** * ***** ********** player. *** ****-**** ******** ** **** the *** ********** **** ***** ******** and **** *** *** ***** ********* is *** **** **** ***** ***********, working ********, ******* ********** **** * combination, *** ** **** ******* *** stronger ** *** ********** *****.

Vote / ****

Comments (23)
JH
John Honovich
Oct 21, 2019
IPVM

** *** *** **** *******. * published **** ******* ** *** *** initial ******** **. *********, ***** ** did *** *****, ***., ****** *** us ****.

Avatar
Brian Karas
Oct 21, 2019
Pelican Zero

******** ** **** *** *** **** on *** ****!

(3)
UM
Undisclosed Manufacturer #1
Oct 21, 2019

"**...*'* ***, ********* ** *****.***....**** ** your *****, **** ****, **** ******* dealers ******** ** ******* ****, *** wretched ****** ** **** ******* ******"

(1)
(7)
(5)
JH
John Honovich
Oct 21, 2019
IPVM

*** *** ******* **** ******/****? *** is '****** ******' **?

(1)
UM
Undisclosed Manufacturer #1
Oct 21, 2019

****.

*** **** ***** *********** **** ***** out ****..."**, *'* ***, ********* ** Alarm.com." * *** *********** *** **** that **** ***** ******* *** ****** diminishing *** ** ******* ********** **** drop, *** ** **** ********** **** alarms **** ******** ** ***** ***********, bypassing ******* ******* **********. *** **** is * **** ** ***** ***** at *** **** ** *** ****** of *******, (******** ********), ******* ***** dealers **** *****.*** *** * ******* to **** **** **** ***** ******** and *************, ********** ** **** **** into *** ********** **** ** *** business.

(1)
(2)
(4)
JH
John Honovich
Oct 21, 2019
IPVM

****** #*, * ***'* ****** ** radio!

**** ***** ******* *** ****** *********** ROI ** ******* ********** **** ****, and ** **** ********** **** ****** sent ******** ** ***** ***********

****'* ** *********** *****. * ** curious ******; ** ******** ********** ** the *********** ****** ** **** **** is * *** **** / *****. The **** ******* ********** **** ***** may *****'* **** **** **********.

(2)
UM
Undisclosed Manufacturer #2
Oct 21, 2019

********** ***** **** * **** *****. Congrats ** *** **** *** ** years ** **** ****. * ****** if **** *** **** ***** * full ******** *** ******** ******** **** Avigilon ** ***** ******** ************ **** hardware ******** *** *********** ** *** demand.

JH
John Honovich
Oct 21, 2019
IPVM

****** ** **** *** **** ***** a **** ******** *** ******** ******** like ********

******* *********:

* *** **** ** *** ***** is *** “**** ***** ********” ** we **** ** ****** **** ********* as **** ** ********.

** ********** ** **** ******** ** open *** ******* **** *** ******* their *** ******* ** ******** ***** OpenEye ******* *** ******* **** ** a ****** ** ********** ****.

UM
Undisclosed Manufacturer #3
Oct 21, 2019

**** **** **** *** ****** ** Arecont *** ***** ******* *** (***’* by *******)?

(1)
(1)
JH
John Honovich
Oct 21, 2019
IPVM

******* **** ******** ** *****. **** generally, *****.*** **** *** ****** ******* or ******** **** **** ******* ****. For *******, ** **************, ******* ****** to ** * **** **** ********* integrating ************ (* ****** / **** Alarm.com **********), * ***** *** **** being ** ***** *** **** ******* does **** ******* ** *** * factor ** *****.*** *********, **** **** I ***.

(1)
UM
Undisclosed Manufacturer #1
Oct 21, 2019

****

* ***** *********** **** ** ******** that ****, *** **** ** ***** alarm ****** *********, **** **** *** small ** ****** ***** *********** ***** installation ******** ** ***** ** ** severely ******** ** *** *** ***** direct *********.

******* ******** *** ******* ********* ***** video ************ ********, ***** *** ** required ** **** ************** ** *** near ******. * **** ***** **** some *** *********** ******** **** *** not ******* ** ****** ******* ***** verification. ** **** ** * ************* trend, ***** ************ ** *** ******* station **** ***** *** **** ** monthly **** ** *** ********, ** it ** **** **** ***** ********* than ******** ***** *********, ***** ** very *********.

*** **** ** *****.***'* ********/****** **** OpenEye, *** *** *********** ***** ******* that **** ** **** **** *** see * *** ** ****** *** reduction ** *****-**** ********** ******.

* ***** ******* ******* ***** **** me ******** **** **** *** ***** to *** ***** ************ **** **** seamlessly **** ***** ******** ******** ********, and ***** * **** ******* **** video ************ *** ******* ** ****.

******* **** ** ***** *****.*** ** heading?

(1)
(1)
JH
John Honovich
Oct 21, 2019
IPVM

#*, *********** ******. *****, **** *****'* know *** *********** ***** ** **** so * ***'* ** **** ****** as * ********* ********** * ***** there ** * ****.

*** **** ** *********** **** *** decline, *****.*** *** *** **** ** saturating ***** **** *********** ******. ** it ***** ** ******** ******* **% a ****, **** **** ** ******.

*****.***'* ********/****** **** *******

** * ***** ** *************, **** is ********** *** * ******, *****.*** does ~*** *** ******* ** *******.

Avatar
Gerald Becker
Oct 21, 2019
Quanergy Solutions

*** ******** ** **** *** *** whole **** ** *******. **** ******** and ***** ***** ** ****** ** OpenEye. ******* ******* ** *** ***** to ****.

(3)
Avatar
Buddy Mason
Oct 22, 2019

******'* ** *** ******* *** **** and ***** **** ** **** ***. Have ****** ** **** **** ****** well **** *** **** ***** ***** and **** **** ** **** ***** and *******. * **** **** **** cash ********* ** **** **** **** achieve ***** ******* ***** **** ****** to **** ** **** *** **** paced ********. **** **** *** ***!

(6)
UI
Undisclosed Integrator #4
Oct 22, 2019

* **** **** ***** ***** **** the ******* ******* *** ****. * just **** **** **** *****'* ****** the ************ **** **** **** **** DMP. *** *******/*** *********** ** ****** to **** *** ****** ********* **** no-one **** ***. ***'* ******* ****** is **** * ********** **** *****.*** so * ** ****** **** **** doesn't ****** ****** ** *******.

*** ********* **** **** **** ******* with ******* **** ******** ** *****. The *** *** ********* (******** **** simpler) ** ******** *** *** ******** staff *********.

(2)
(3)
JH
John Honovich
Oct 23, 2019
IPVM

******* ******** ***** *** ********:

********** *** ********* ***** **** **** integrated *********, *** ******* ** **** actionable ************, ** *** ** *** primary ******** ** ******* *** ********. We *** ********* ** ** **** cloud ******** *** ******* **** *********** partners ** ***** **** ***** ** our *********. **** ******** *** *********** with ***.

(2)
DP
David Pilchick
Oct 22, 2019
Brooklyn Low Voltage Supply

******** ** *** **** ** *******

**** *** * ***** ***** ** folks

**** ****** **** ***** ****

* **** ******* ** ****** **** the ****** **** *****

(1)
Avatar
Sean Nelson
Oct 23, 2019
Nelly's Security

******* **** *** *****.***. **** ******** to ********* *** *********** ********** ** be **** **** **** **** * remote ********** ******* *** ***** ******.

(2)
Avatar
Rick Caruthers
Oct 23, 2019
Galaxy Control Systems

*** ******** ***, **** *****.*** ** after * ********** ****** ******* ************ to ***** *** *** ********? ** so ***??

(1)
Avatar
Brian Rhodes
Oct 23, 2019
IPVMU Certified

** ** ** *********** ********.

*****.*** ******** ********** ***** *** ****** offering (** ******* *******.*** ******** ****** *********) **** **** ******* ******** ******** and ***** ***-***** ******** **** ******* essentially ** '******' ****** **********.

*** ****** ******** *** ** *** small-medium ********** *** *** ** **-******* server, *****, ** ** *** **** an ** ** ** ****** **********.

** **** ** ******** ***'* ****** control ***** *** ************.

(1)
(1)
Avatar
Rick Caruthers
Oct 23, 2019
Galaxy Control Systems

**** ***** **** **** *** ******* about ******** **** ***** ******* **** Mercury ******** ***** **** * ***** annual ****** **********. * ***** *** next ******** ** **** *** ******* look ** **** ** * ****** access ******* ******* ** **********...**** ** a ***** ********* ***** **** ******** codes ** ******** ***** **** ** their **** ** ******* *** ****** of *** ****** ****.

(1)
(1)
JH
John Honovich
Nov 08, 2019
IPVM

******:*******'* ** **** ****************** *** ***** **** *** **'** updated *** ****** **** **, ****** below:

******* *** ****** ** ~$** ******* in *** ****, **** *****.*** ****** $61.3 ******* *** ** **% *****. Additionally, "** ****-*** ** ** ** an ********** $**.* ******* ** ******* if ******* ******** **** ******* *** met."

****,** *** ** **** **********, *****.*** discussed******* ** ****** *** ******* **** I ***** ************ **********.

LJ
Lee Jones
Nov 09, 2019
Support Services Group

****.. *** *****… “** **** ****, we ******* …. **** ** ***** wrong ** *** ****** (******-********* ***********) and *** ** ***** *** *****”? Plus *** “****** ** *** *********** markets”. **** ** *** ** *** back-story.
>
**** ** ** ******** **** **** alarms ***** ***** *** *** *****, in **** ******* ****, *********** ****** parking, ** ******** ** **** *** left **********. *** *********** ****** *** site-response ****** *** ********* *******, *** fined *** ******* ***** *** ***** abatement ****. *** **** ***** ** developing *** ******** ** ********* ********* home ******…. **** ** ** ********, causing **** **** *********; ********* *****/****. Auto ****** *** *** * ***** accessory ** *** ******** **********… **** near **** ********** ***** ******. *** vehicle ***** ***** ******* *** ************ solved ** *** ******* ***** *********, not ** ********** *********** *** ******* blame. ********** *** **** ***** ******** grew *************, ********* *** ***** *******. Good ***** ** ******…. ******* *********** property ***** ******* *** ********* ** get ***** **** ****** ******** ** vehicle ******.... ****** * *** **** threat ** *********…. *** *** ***** of *****.***/ *******, (********* ********* ********). Often **** ***** ********* ** ** locked ******** **** ******* *****. ******* note… *** *********** ******** *** ******* because *** *** **** ***** ********* immunity ** **** ** *******, *** not **** ****** ** *** ******* to ***** **** ********** *****.
******: *** *****, ******* ******** *****

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