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)
Undisclosed Integrator #1
RedHawk was acquired by UTC and the returned to the owners at some point in the last 10 years
UTC probably saw little value in a lower margin business
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Undisclosed Distributor #2
Smart.
Residential is a loser for ADT. Big Blue can leverage their brand recognition as a way to bring medium and large commercial accounts, and acquiring people who actually know what they're doing allows them to mitigate their two biggest weaknesses, poor install quality and worse customer service. ADT salespeople and Red Hawk operations managers, systems designers, and technicians might make things very uncomfortable for JCI, Seimens, or Vector.
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Undisclosed End User #4
Now, how overall how do they compare in the Commercial space to Convergint?
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Undisclosed Integrator #5
Running a commercial business will have a significant impact on their balance sheet and change related metrics from what they are accustomed to. They will need to take on new debt to finance the acquisition based on Q2 results and fund the change in inventory, WIP and AR. This will also muddy their GP% with the mix of these two separate businesses. It will be interesting how they will spin this at their next quarterly results.
Still see quarter after quarter of large losses -10% of sales. One would think it prudent to get the core business fixed before taking on something they lack expertise (assuming staff previously involved in commercial left with Tyco/JCI). They should hold off transferring the monitoring accounts until they swallow this acquisition.
Will they start reporting their sales from commercial sales and GP separate from their core residential business?
Any idea who else was in the running who failed to secure this acquisition?
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Sean Erickson
You might want to change the ACTi Communications, Inc. in January 2018 to ATCi Communications.
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Undisclosed Integrator #6
Setting up for Amazon takeover of ADT residential businesses by Q1 of 2019...
Buried in debt ($10B) w/ a now rising interest rates environment spells no way out for this poorly managed legacy company...📉
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Undisclosed Integrator #7
I'm wondering how was P1 performing in the large commercial IDS and Fire business before the Apollo purchase and subsequent "acquisition" of ADT? I have to believe that the P1 team is managing the entire business under the ADT name and we are more likely to see a business that is modeled after how Tim ran P1 than how ADT has traditionally conducted business. I am surprised to see so many acquisitions is such a short period of time, that's a lot of ingredients into one soup! Are they done or are there more acquisitions on the horizon?
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Dan Gelinas
ADT also just announced the acquisition of Advanced Cabling Systems of Little Rock, AR. Advanced also has offices in Lowell, AR, Tulsa and Oklahoma City, OK, and Ozark MO. Advanced specializes in "the installation and service of integrated systems including structured cabling, fire alarm systems, audio/video, CCTV, access control, intrusion detection, intercom/paging systems, nurse call, and infant protection systems."
“The addition of Advanced is part of our focus on commercial growth,"ADT Commercial Executive Vice President Dan Bresingham said in the release. "[This acquisition] underscores both ADT’s and Red Hawk’s focus on leveraging technology to deliver superior customer service and support to commercial and enterprise-level organizations, particularly those with multiple U.S. locations."
A report from SDM claims Advanced has $27 million in revenue in 2017.
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John Honovich
ADT announced their 'ADT Commercial Brand' at ISC West and released this 1-minute marketing video:
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