ADT and Brinks Home Security have both been struggling over the last year. ADT valuation is 50%+ less than their IPO target. Brinks Home Security, aka ASCMA, aka Moni, aka Monitronics, faces an investor lawsuit, and a debt crisis.
Their problem can be the entire industry problems as they are 2 of the 3 largest US alarm companies, as this SDM ranking shows:
Are the various struggles of ADT and Brinks Home Security weighing the rest of the industry down? Just as a rising tide floats all boats, do two sinking ships pull others under?
Inside this report, we examine these questions based on conversations with John Brady of TRG Associates, Peter Giacalone of Giacalone Associates and one industry expert who choose to be anonymous looking at 3 potential theories of what is happening:
- Primarily an ADT- and Brinks- specific problem, not reflecting the broader industry
- Generally, an industry phenomenon driven by Amazon, Google, and others that brings evolution and opportunity for all
- The changes may be leading to the death of the traditional just-security for $30-$50/month model