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."
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