ADT Acquires Red Hawk, Becomes Billion Dollar Commercial Business

By: Dan Gelinas, Published on Oct 25, 2018

With its ~7th commercial acquisition in the past year, ADT is transforming itself from a residential provider to a commercial player with now more than a billion dollars of annual commercial sales.

ADT has announced [link no longer available] it will acquire Red Hawk Fire & Security for $317.5 million in a move which fundamentally changes the direction of the company and "accelerates its growth."

adt acquires red hawk 1

Does the acquisition make sense, given ADT's residential core? How will this purchase and ADT's continued shifting in focus affect the industry?

Inside this note we look at:

  • Financials of the Deal
  • Strategy for ADT
  • Former Acquisitions
  • Commentary from industry experts including John Brady and Peter Giacalone
  • Effect on the Industry
  • Possible Problems

Financials ** *** ****

*** ** ****** $***.* million *** *** ****, which ** ******** ** bring ** $*** ******* in ******* *** ****:

*** *********** **** ******* ADT's ******* ******** ********* and ***** ** ******** them ****** **** **** commercial *********** *** ****. These *** ***** **** industry ********* ******* **** Brady *** ***** ********* say *** *** **** wanting ** ******** ***** *** **** split******'* ********** ***-*******.

*** *********** ** ******* in **** ***********' *********** ** ******* in ****.

Billion ****** ********** 

***********, ***, * $* billion *******, **** *** acquisition ****** *** ******** total ** ********** ******** revenue *** *** ** 25% ** *** ***** revenue, ******* *** ** now * $* ******* player ** *** ********** space:

Commerical '******' *** ***

*** **** *** ********** side ** * "******" of ***** ******** ***** forward:

*** *** **** ** an *********** ****, **** several ************ ***** ** Red ****.

Other ************

** ******** ** *** Hawk, *** *** **** acquired:

** ** ***** ****** that *** **** *** also **** ** *********** mode ******:

*** ** ***'* ************ are ****** ** ****** to **** ** **** to ** *** **** it ***** ** ** again, ********* ** *******.

Return *** **** ****

******** ********* ******* **** Brady [**** ** ****** available] ***** ************* ***** ********* [**** no ****** *********] *********** *************** **** **** ***** the ***********.

***** **** *** ******** of *** **** *** a "************" ** **** ADT *** ****** **** split **** ****:

**’* * ************ ** what **** ******* ** do *** ****** *** **** hold ****** *** ****. When *** ***** ****** off *** **** *** residential ********, **** *** a ****** **** **** couldn’t ** ** *** commercial ***. ** *** [Whall] *** *** **** immediately ******* ** ****** into *** ***** ********** as **** ** **** could. **** ****** *** a *** ******** ******* activity. ****’** **** ******* hard ** ****** *** integrated *******, *** *** Hawk ** * ********** opportunity ** *** **** into ****.

********* ******, ****** *** ******** was *** * ********:

**** ***’* *** ******* in ********** *** ****, they ********* ** **** to ****** **** **** commercial. **** ***’* ****** breaking ****. **** ** who **** **** ** one ****. * *** waiting *** ********* **** this ** ******. ** makes ***** ***** ** them. **** **** ** expand ***** ********* *** Red **** ** * respectable ********** **********. ********** is ***** *** ** from *** **’* ***** they **** ** ** back **. **** ** something ****—****** ** *** Red **** ** ****** else—was ***** ** ******. It’s * **** ***** move *** ***. * think ****’** ***** * good ***. ***** ***** hasn’t ********* ****, *** I ***** *** [*****] has **** * **** job. * ***** **** is * **** ****** move *** **** **** they *** ** ** to ***** **** **** to ***** * ****** commercial ********.

***** **** ****** *** that ** ** ********** to *** **** *** Hawk ** * ****** commercial **** **********:

**** ** * ****** big **** **** ************ what ****’** **** ****** to ** * ****** faster **** **** ***** have ****, *********. ** doesn’t **** **** **’* a **** ***** *******, too. **** *** ** happen, **’* **********, **'* got *** *** ****** it. *** *** *******, you *** ***** *** inspections. *** **** *** done ****** **** ****** the ******* **** **.

*** ** **** *** business ** ********* *** says **** ***** ****-**** financial ********:

Effect ** *** ********

*** **** *** ** a **** ********** ****** in **** *** *********** and ********** **** *** security ******, ********* ** Brady:

*** ****’** **** *** will ** * *********** player.

***** ******* ** *** industry *** ******* * hard *** ***** ****'* ********** ******,********** **********. *** ** *** Hawk's ********--********* ** ~**,***--*** currently ********* ** **********. It *** ** ******* that **** **** *** move ** ***. ******* tell **** **** ********** has ******* ***-*** ******** monitored ********.

Possible ********

***** *** ********* ******* we ***** **** ***** the *********** ** * good ****, **** ******* John ******** [**** ** longer *********] ******* *********: 

(*) *** ****** ***** on ******* *** ******* residential ***** ********** **********. By *********** ************ **** from ***********, **** **** make ** **** ********* to ******* ** **** fronts **** ********* **********, i.e., *********** ** **********. 

(*) *** ** ********* companies ** * ***** (commercial ***********) **** ****** valuations *** ****** ********** capabilities **** ***** ********** core (***********). ****, ******* of ****-*******, ***** ** no **** **** *** **** can ** * ******** commercial ********** ********. ** reads **** ** * desperation **** **** **** cannot ***** *** *********** threat ** **** **** downshift **** * ************ financially ****** *****.

(*) *********** *** ***** various *********** (********* *** Hawk *** *** ******** numerous *********** ****** ** the **** * *****) will ** *********** ** they **** ******* *******, cultures, ********* *******, ***. 

Vote / ****

Comments (18)

******* *** ******** ** UTC *** *** ******** to *** ****** ** some ***** ** *** last ** *****

*** ******** *** ****** value ** * ***** margin ********

 

 

 

 

 

 

 

 

 

*****. 

*********** ** * ***** for ***. *** **** can ******** ***** ***** recognition ** * *** to ***** ****** *** large ********** ********, *** acquiring ****** *** ******** know **** ****'** ***** allows **** ** ******** their *** ******* **********, poor ******* ******* *** worse ******** *******. *** salespeople *** *** **** operations ********, ******* *********, and *********** ***** **** things **** ************* *** JCI, *******, ** ******.

*********** ** * ***** for ***.

** *** ***** **** is **% ** ***** business *** **** **** are #* ** *** market *** ** * loser? * ** *** even ****** * ******** but ****'* * ****** brutal ******** ** ** in.

** *** **** *** national ****** ** * dying ******, ***’* ************ expand **** * **** profitable ****** ***. 

*** *** **** *** investors **** **** **** a '***** ******'? :)

* ***** **** ** wild **** ********** *********** is ***** *** *********** guys **** ** **. It's **** * *** from **** * *** years *** ***** *** clear *** ***** *** in *********** *********.

*** *** **** *** investors **** **** **** a '***** ******'? :)

***, ******** ***'* *********** illegal. 

** ** **** *** chances ** ***** ********** organizations ******* ***** *** IDS *** **** ********* from ****** *** ****** slim.  * *** *** that ** ***** *** consider ***** *** ** the ******** **** *** causing *** ****** ** our ********** *********.  ** would **** ***** ** diversify **** * **** profitable ******** *** **** would **** ** *** ADT *** *** ************ focused ** *** *** fire?  ********** ** * public ******* ** ***** be **** ** ******** investors *** ***** ******* in ******* ********** ********* industry.

** ******* *** *** is ***** ******* ** ADT/Apollo ********** ********* **** the ******* ***. **** was *** **** ***** the *** **** ** security “************” ** ******** of ***** “*********” ******** alarm ********* (****, ** police ********). ****** ***********. Much ********* *** ********** expected. ** * **** to ****-*** ********** “*********” customers, *** **** **** PULSE ******* ***** **** sense (****** ******** ****** response). ***, *** ***** again ** * ********** leader, *** ***** **** prepare ***** ******* *** pickup, ***** ***** **** ***** stock **** ****** ******.

******: *** *****; ******* Services *****

***, 

**** ******* ** * bit ********* **** * lot ** ********** *** no **** ** ********. I'm *** ****** ***'** wrong ***, ** ***** be *********** ** **** the *********.

*** ** *** "**" that ******** *** *** is "*****" ******* **** the ***/****** ***********...***, ** you **** *** ******* for **** ******?

** *** **** *** support *** *** "****, no ****** ********" *******?

***** ***!

 

***, *** ******* *** do **** ******* ** the ********** ***** ** Convergint?

**** ***** / ********.

*** *** ********** *** now ***** *** **** size. ** ****** *** ADT...

*** ** *** ***********, yes, *** ** *** a ****** *** ********** integrator. *******: ********** ************ ********* ********** Market

******* * ********** ******** will **** * *********** impact ** ***** ******* sheet *** ****** ******* metrics **** **** **** are ********** **. **** will **** ** **** on *** **** ** finance *** *********** ***** on ** ******* *** fund *** ****** ** inventory, *** *** **. This **** **** ***** their **% **** *** mix ** ***** *** separate **********. ** **** be *********** *** **** will **** **** ** their **** ********* *******.

***** *** ******* ***** quarter ** ***** ****** -10% ** *****. *** would ***** ** ******* to *** *** **** business ***** ****** ****** on ********* **** **** expertise (******** ***** ********** involved ** ********** **** with ****/***). **** ****** hold *** ************ *** monitoring ******** ***** **** swallow **** ***********.  

**** **** ***** ********* their ***** **** ********** sales *** ** ******** from ***** **** *********** business?

*** **** *** **** was ** *** ******* who ****** ** ****** this ***********?

*** ***** **** ** change ******* **************, ***. ** January **** ** **** **************.

 

***** ***, ****.

******* ** *** ****** takeover ** *** *********** businesses ** ** ** 2019...

****** ** **** ($***) w/ * *** ****** interest ***** *********** ****** no *** *** *** this ****** ******* ****** company...📉

 

*'* ********* *** *** P1 ********** ** *** large ********** *** *** Fire ******** ****** *** Apollo ******** *** ********** "acquisition" ** ***? * have ** ******* **** the ** **** ** managing *** ****** ******** under *** *** **** and ** *** **** likely ** *** * business **** ** ******* after *** *** *** P1 **** *** *** has ************* ********* ********.  I ** ********* ** see ** **** ************ is **** * ***** period ** ****, ****'* a *** ** *********** into *** ****!  *** they **** ** *** there **** ************ ** the *******? 

*** ******** ********* *** *********** of ******** ******* ******* ** ****** ****, **.************ *** ******* ** Lowell, **, ***** *** Oklahoma ****, **, *** Ozark **. ******** *********** in "*** ************ *** service ** ********** ******* including ********** *******, **** alarm *******, *****/*****, ****, access *******, ********* *********, intercom/paging *******, ***** ****, and ****** ********** *******."

“*** ******** ** ******** is **** ** *** focus ** ********** ******,"*** Commercial ********* **** ********* Dan ********** **** ** the *******. "[**** ***********] underscores **** ***’* *** Red ****’* ***** ** leveraging ********** ** ******* superior ******** ******* *** support ** ********** *** enterprise-level *************, ************ ***** with ******** *.*. *********."

******* **** *** ****** ******** *** $27 ********* ******* ** ****.

 

*** ********* ***** '*** Commercial *****'** *** **** *** released **** *-****** ********* video:

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