ADT, the $4 billion annual revenue security giant, recently publicly traded again, has merged with security integrator Aronson Security Group, according to a message from Aronson Security Group's (ASG) CEO Phil Aronson.
In this note, we examine the 'merger', the rationale behind this and how it might help ADT, whose IPO challenges have become a public problem.
You might as well start saying "ASG was the best security provider..." now just to get used to it. My guess is it will be less than a year before ADT chews them up and spits them out. I do hope it is more like the article states though, for everyone's sake.
I will agree that ADT was a pretty bad company and it was always easy to beat them when I worked as an integrator. However, when Tim Whall took over Protection 1 he really turned around the service department and positively impacted the company in various other ways. Service being the biggest. Hopefully that will transition to ADT and now ASG and as John states get them into more of the large commercial verticals.
How to add market value to ADT…. spin off the high attrition residential segments.
The high cost of quality “commercial” acquisitions cannot offset the financial and operational facts…. ADT is still a shrinking “residential” security company. Current slick advertising could distract our attention away from the millions of basic, outdated, “deterrent” systems that are ignored even by local police. Without emergency response, deterrent systems are often treated like nuisance auto alarms, and should be consumer priced accordingly.
Source: Lee Jones; Support Services Group; firstname.lastname@example.org
OK, ASG has enough history in the Pacific Northwest and speaking with many of friends that work there now or have in the past, each one has always cited respectful comments about ASG culture. I always thought I might end up there one day but never made back to Seattle. The weight of my one line statement comes from the fact that I always enjoy reviewing bids and designs by other companies I have not worked for and find it amusing how all this data makes its way around, um thanks LinkedIn for your networking. Seeing other peoples responses to RFPs etc., I always look at sales rep, applications engineer or architect, I then review that person on every level I can. I have encountered a lot of good design work, written scope, warranty qualifications originating from ASG or certain people in the security sector. Sometimes I can recognize the CAD line work from individuals encountered in the past; even when some of that content comes from other organizations and companies. It is easy to spot the security guys wit, logic and industry viewpoints. Kudos to ASG on their new relationship, bravo. However, I feel that if ADT does not have the tempo to match the ASG culture there could be fallout but you never know when, where or which department is going to take the hit first. Is this opinion going to sink the ship? Probably not! resilience is accrued thru attrition and not CASE CLOSED mentalities (had to go there, for those in the know-LOL). I wish the best to my Northwest buddies and ASG. Ain't done today, Ain't done tomorrow.
That's a good way to say it. One wonders if ADT -- this week's ADT not your grandmother's ADT -- has the tempo to match the (badass) ASG culture. It may well be able to do it. Huzzah to them if they do.
Is there no other confirmation, verbal or otherwise, of the transaction besides the newsletter?
I still have not seen anything official.
But in terms of verbal, people have been talking about it at least a week before we reported on it. At first, I dismissed it, thinking that people were conflating it with the 2015 merger with Maryland based ASG.
As many commenters have noted, it is also an atypical combination.
I would think a man like yourself would be cheering the innovation of a merger announcement by mailchimp newsletter...
In all seriousness, I am not sure what the criteria / metric is for having to disclose information (i.e., what counts as being material enough to have to report). However, one point of metric is available. ADT did disclose acquiring MSE even though MSE 'only' reports $25 million revenue, significantly less than Aronson. At least based on that comparison, it would indicate ADT should properly disclose.
ASG has a lot of talented employees. Kudos to Ron Worman and The Sage Group for an unrelenting marketing campaign that was launched over a decade ago. That marketing vision (tweaked along the way of course) shaped ASG into the company they are perceived as today. This "merger" has probably resulted in a very good pay day for those who were lucky enough to hold a stake in the company.
Kinda. ADT does commercial? I thought they got out of that business when Tyco/IS was created. I thought ADT only did small business (things small enough that the 3-door system advertised on their web site would be a fit.)
Is there an ADT integrator business? I mean, pre-ASG/ACME.
Yes, thanks for that link Michael and hot off the press with today's date. I am happy to see an accurate characterization of the merger as an acquisition. It certainly makes more sense given the size of each company.