ACRE Acquires RS2, Explains Acquisition Strategy
ACRE continues to buy, now acquiring RS2, just 5 months after buying Open Options.
One is a small access control manufacturer from Texas, the other is a small access control manufacturer from Indiana.
And ACRE already owns access control manufacturer Vanderbilt.
Why so many?
In this note, we share our findings from speaking with ACRE management and analyze the deal.
ACRE **** ******* ******* *******
*** *******'****** ******* ******** *** ** *** **** ********** aspects ** *** ****:
“*** *********** ** *** ****** ****’* portfolio ** *** ****** ******* ****** andprovides ** *** **** **** ** *** ***** in a highly competitive market with **** ********* ***** *** *** **** ****.” [Emphasis Ours]
** ***** ** ****'* ******, ** just ********* * *** *** **** *******, ** ****** ******* ** ******* size, **** ******* ********, ***** *** same ******* ******** ********, *** ********** ********* *** *** same *********.
Regional ***************
**** ***** **** ****'* *** *** ******, *** ********* ***'* ******-***** ** strongest ** *** ******* **, *** was * ****** ** ********* *** company ** * *** ***** *** other **** ********** *******************,**** *******, *********.
****** ********* **** ***** **** ** the ****** *** ******* ** ********** regions, **********'* ******** (***:******** ******) **** **** ********** ******** ** the **** *****, *****-***** **** ******* is ********* ** *** *****-******* **, and *******-***** ***'* ******** ***** **** its *****-******* ******.
RS2 ********
***, ***** ** ******* ***** ** downtown *******, ** ** ****** ******* offering ******* ***** ******* ***** ** versions ** *** **************** **! ********. ***'* ******** ******** ** ************* ******** ******, ******* ** ******** ******* ********* *** **** **** ** *********, Avigilon, *** **** *******.
*** ***** ************** *** *** ** the *******'* ********* *** ***** *******, often ***** ** '**********' *** '*******' in *** ********** ****** ********* ******* ** contrast ** ****** **** ***** *** often ***** ** *** ** *** worst in ***** **********.
*** ******* ****** ** *********** ******* in ****, ***** ******** *** *** Indiana-based ********** *** ***********.
*** ****, *** *** *** ****** ******* ******* *******.
Will ****** ********** *******
**** ********* ** **** **** **** do *** ****** ** **** ** RS2 **** ***** ****** ******, *** instead ******** ******** ******** **********. ****** said ***** *** '** *****' ** downsize *** ******* ** ******* ********* across **********.
** ********* ** ************* **** ******* suppliers ***** ** ******** ** ******** with ***** **** ******, ***** ***** be *********** **.
Acre '*** ******* ******* ******* ** ******** *****'
** ***** ****** ** ****'* ******* M&A ******** *** ** ******* *********** access ********* *** ****** **** ** a **** ****** ************ ***** ** rival *** **** ** ********** ******************* *****.
****** ******** **** ****, ******* **** Acre ***** ** ******** '*********** ****** companies **** ****** ******' ***** ***** own ********** ****** *** ********.
RS2 ********* *******
** ***** ** *******, ****** ****** 'RS2 ** ******* ** **** ** Open *******', ***** ******* **** ******** ~$20 *******. ** ***** ** ******* headcount, *** ******* ~** ******.
***** ***** ******* **** *** *****, Grillo ********* **** *** **** ****** Acre's ******* ******* '***** ** $*** million', ***** *** ********* ** ~$*** million ****** *** ******** **** ********** ******* ******** ******** ********** ************. **** ****** ***'* ******** ** the $** - ** ******* *****.
Acre ********* *******
** ***** ** ******** ********,**** ** ********* '** * ******* company *** ******* ** ********* [********] industry **********, ********* ***** **** *** less *****'.
*** ******** *** ****** ****, ******* buying *** **** ******* *** ******* *** * *********** ******.
**** ******* ** ***, ****'* ***** simply ***** ** ** ****** ****** and **** **** *** *******.
'**** **** ******** ** **** *** strategic ************* ** ***** *** ********* with *************, ****** ***********, ************.”
Market ******
** ***** ** *** ****** ******, the **** ** ******** ** ** significantly ********** ** ****** *** ** competitors ** *** **** ****.
*******, *** ******** ********* ********* ****'* backing ********, ******* **** * ****** of ***** ********** *** ****** *** positive *** ***, * *********** ****** company ** * ****** *** ****** new *********** **** '****' ******-******** ****** startups **** ********, *****, ********.
****/****
**** ****: **** ** ***** **** Qognify **** ******* *********** *** ******* to **** * ****-*** ***** ****** autonomous *** ****** ******** ******* **** an ********** **** ***** *** ***** bandit **** ******* ***.
* ***** **** *** ****** ** ONVIF-A ******* ****** *****. ** ****** control ****** ***** ** ******* ******** commands **** *** ******** ** ******* the *********** ****** ** *** *********. When * *** ** ******* *** built ** *** **** *****, *** have ** ******* ** *** ** migrated ** ***************.
* ***** **** *** ****** ** ONVIF-A ******* ****** *****.
**** ** *** ******* ****. * just******* *****'* ******** ************ * *********** *** ***** *** only * ************* * ***** ***** release: ****, **** ****** *** ****.
*******: ***** ******** ******* * *** ******
********* **** ** * **** ****. RS2 ** ** *********** *******. * have **** * ****** *** **** in *** **** *** *** *** one ** *** **** ********* * have **** *** ** **** ****, both *** *** **** *****. **** have * ********* ***** ********* ** well *** **** **** ******* *** past *** *****.
*'* ******** ** **** **** **** and *** **** ******* ****. ** are **** ******* *******, *** ***, but * ** **** * ****** of ***** ***** ** *** ***** side. * ******* **** **** ********* have * **** ***** ********* *** to ***** ************** *** *** **** of ***** ******** **** ****.
*'* * **** ******** **** ******* private ********* (******** ** *****, ********-****** companies) *** *** ************ ** **** quicker *** **** ****** ************* **** their ********* ** * ******.
* ******** ******* **** *** ****** at *** **** ******* ******* ***** at *** ****, *** ** ********* that *** ********* ***** ****** ***** out ** ***. *** * **-**** old ******* ** **** * **** percentage ** ********* **** **** **** 10 ***** **** *** ******* ** pretty **********. * ***** ****** *** same ** ***.
********* **** ****** ** **** ******* competitors ****** **** ****** *********** **. Bankroll ***** ******, ***** **** **, then **** **** ** * **** premium ** * ****** ** *** manufacturer *** ***** ****** *******.
**** **** ** * **** ******* to * ****** ** *** ************ who ***** ****** *******.
***** * ***** **** *** ***** them **, ** ******** **: *** don't ***** ***** ********* *** ***** access ******* ********* ***********? ** ***** words, *** ****'* **** ****** **** right ***? * ********* ***'* ****. My **** ***** ** **** ***** are *** ***** ********* ***** ********* vs *** ****** ****** **** ****.
*** ***'* ***** ***** ********* *** these ****** ******* ********* ***********? ** other *****, *** ****'* **** ****** ACRE ***** ***?
* ***** ** *** ** ******** logistics. * ***** **'* ****** ** onboard *** **** ** * *** business **** **** ******** ***, **** make ** ****, **** **** ****** think. *** ****** ** **** *** momentum ***** ****** ********* **** *** business, *** **** ****** ** **** in ******* ******* ***** ******** **** momentum. ******* ****** ***** ******* *****: Pelco *** *********.
** * ***** ******* ** ********** in ** ****** *******, **** *** just ** ******* ****** ** *** who ****** ******* **** * ******* candidate. ****, ******* ** *** *** comes *** ******** *** **** *** pay * ****** ******* *** *** access ******* ***** **** ** *** had ****** ** ***, *** **** if **** ****** ** *** ****'* still **** ** ****** * *********** amount ** ***** ** **** **** business. ** ***'** ********* * *** either ***.
* ***'* **** ** * ** articulating ****** ** *** **** ***. I'm **** ****** ** **** * case *** *** ****** *** * company ***** **** ** *** * business ***** **. ***. **** ***** to **** ** *** *** ***** out ** *** *******.
** * ***** ******* ** ********** in ** ****** *******, **** *** just ** ******* ****** ** *** who ****** ******* **** * ******* candidate
* *** *** ***** ** ****.
*** **** **** ***** **** ***** to ** ** **** **** ***** content ** **** **** ******* ****** regionalized. * ***** ***** **** '*********' acquirers (**** ** ******** ***** ************) would **** ** ****** ******* ******** with ***** / ******* ****** *** name ***********.
* ***** **** ** *** *********** world **** ******* ******** **** **. It's *** ****** ** **** *** install **** ******* ** *** (** any ****** ** ******* *******) ******* they *** ******* ******. ** **** go *** ** ********, **'* *** that *** * **** ******* *** now ***'* **** ** ******** *** the ****** ******, *** **** **** to ****** *** **** ***. **** bit ** ********* **** * **** way ** ****** ***** ********* ****** IMHO. ** ***** ** **** ******* if **** **** ************ ********.
***'* ******** ** ******* ******** ** make *****. ** *** ****** ***********, which * ** ****, ******* ***, was *** *********. ****** ******* **** his ***** ** ****** **** * hardware ************ *** ******* ******** *********. Dropping ******* *** * **** ****** (assumed) *** ***** *** *** ******* from ******** ** ********.
** ** ******* **** ******* ** a **********, ******* ******* ******** ******** is ****** * ********* ******, ** I ********* ** ******** **** *** (Schlage ***********) *** ******** *********, ***** President ** ********* ******. ************* ******* cultures, *******, *** ******* *****. *** by ******, *** ** *********, * left **** ********, *** ******* *** narrow *******. ** ****** ****** **** trying ** **** *** ******* *** other.
***'* ******* **** ** ** **** all *** **********, ***** **** *** major *******. ** **** ******* *** his ****-***** ***** *** ********* *** other, ********** ** *** *****? ** do **** ******* *********** ********* *** develop * ******* **** **** **** different **** *** *****?
*** *** ******* *** ********** ** fire ******, ****** ********, ********, ****** Knight, *** ****** ******, *** ******* every ***** ***** *** *******. **** market ***** *****, **** * ******** of **** ****. ** ***** ** history ** ******** *** ***** ******* successfully.
***'* ********* ** ** **** *** the ************ **** ***** , ** at ***** ****** * **** ** his ******* ******* ********* ** ****. Since *** ** *** ************ *** regionally *******, **** **** ** ** interesting ******** ** ***** ******.
* **** *** **** ** **** and **** ** *** * ***-**** holding ******* ** ************ *********.
******** ******* *** * **** ****** (assumed)
*******, ****** ******** **** ** **** video, ******* ** * '****** **** return *** *** *** ************':
****'* * *********** **********, ****** *** sharing:
*** *** ******* *** ********** ** fire ******, ****** ********, ********, ****** Knight, *** ****** ******, *** ******* every ***** ***** *** *******. **** market ***** *****, **** * ******** of **** ****. ** ***** ** history ** ******** *** ***** ******* successfully.
******* *********: ** ****** ******* **** significantly ********** **** *****? * ** not **** *** ** ***** **** way. *** ** ****** *******, ** the **** ******, ***** ** *** significantly **** **********?
****'* ***** ****** ***** ***** ****** is ****** ** * ** *** so **** *********** **** *** ********* when (** ****) **** *** ****** control ****** **** ****** ****** ******** access ******* *************.
** **** ***** ** ********* *********** ** **** **** *** ** Ohio? * ** *******, * *****.