ADT Acquires Much Maligned "Defenders"

By: John Honovich, Published on Jan 07, 2020

"The Defenders" has the dubious distinction of being ADT's largest partner and a long history of customer and employee complaints and lawsuits.

Now, ADT has acquired "The Defenders".

What does this mean for ADT? Is it a good deal? And what does it say about the alarm industry overall? We examine this inside.

"*** *********" *** *** dubious *********** ** ***** ADT's ******* ******* *** a**** ******* ** ******** and ******** ********** *** lawsuits.

***,*** *** ******** "*** Defenders".

**** **** **** **** for ***? ** ** a **** ****? *** what **** ** *** about *** ***** ******** overall? ** ******* **** inside.

[***************]

Acquisition ********

*** ** ****** ~$*** million *** *** ****** of*** *********, ******:

********* ******* ***** *. Lindsey *** ******* *. Lindsey ******** ************* **.* million ****** ** *** common ***** *** ***% of ***** ********* ** Defenders

***'* ****** ***** ** ~$7.50 *****, ****** **.* million ****** ***** $*.** = ~$*** *******.

*** ****** *** '******** price' ** * **** higher "************* $*** *******" but **** ******** **** which, ** **********, **** a ******* ******** *******, they ******.

"Opportunistic" ***********

*************, *** ********** ********* the **** ** '*************':

************* *********** ******** ** be ******** **********...

**** ************* *********** ******* numerous

'*************'* ** ** ******** description *** ** ***********, defined **:

********** ******* ******* ** immediate ************* ******* ********* to * ******* **** or ***** *********.

** ******* *** *********** is **** *** *** not ****** ** **** to ******* ********* *** the '***********' ********* ******.

Low ***** ****?

*** * ******* **** claimed ** **$*** ******* ** ****** revenue ** ****** ***, **** ** * low *****. ***** *** Defenders **** *** ******** they ******* ** ***, historically **** *** * profitable ******** ** ***** so. ******, **** ***** have **** ***** ******** or **** **** ** others (*.*., ***'* ******).

****, *** ********* *** very ***** *** *** alarm ****** ********, *********** nearly * */*** ** giant's *** *********** ********* and ********* ****** *,*** employees.

** *** ********'* '*****************' exiting *** ******** *** just $*** ******* ** (volatile) *** ***** ** noteworthy.

Sign ** *** *****?

***** ** ** *** know **** ***** *** Defenders ** ** ****, the **** **** ****** the ******* ** ********* challenges *** *********** *********** alarm *********. **** *** way ****** *** *****, it ***** ** ****** for *** ********* ** exit *** ****** ****** become **** *****.

Upside *** ***

*** ****** *** *** is **** **** *** now ******** ******* * core ****** ** ***** residential ******* ********, ***** they ******** ** ** opportunistic *****.

*** ******** * **** of ******** ** *** deal, ***** ** **** to ** **********:

Downside *** ***

*** ***** ******** ** that ************ *** ********* being * ******** ******* helped ** ******** *** mitigate ********* *** ****** from *** ********'* ******** practices. ** ** ******** last ****, ******* ** ********** *************** *** ********'*:

**** *** **** ******** alarm ******** *********, ****'* quite *******.

***, ******** ******* ** The ********* ***** ******* will ******* ******** ** ADT, ***** **** **** be ***. *** ******** lawsuits ******* *** ********* are *** ***'* ******** plus **** *** ********* more ********** *** ******** publicity, ***** ***'* ****** size *** ********* *****.

** **** ** *********** to *** ** *** changed *** ********'* ***** practices ** ****** ***** risks. ** **, ** could ****** ******** ********** but ** **** ******** of ********* ********* *******.

Comments (10)

John Honovich

IPVM | 01/07/20 08:33pm

*** ********* * *** ** government ********** **** **** *******, including:

  • ** ** ***** ****** officially ** * '******', contrary ** *** ***** release ***** ****** ** an ***********
  • *** ********* **** "****** * ******-***** ******** subsidiary ** ***, "*** integrated **, *** **** statement.
  • "*********’ ************ **** ****** not ** **** *** Common ***** ******** ** the ****** *** * period ** *** **** from *******". **** ******* some **** ** ****, ADT ***** ** ** ~$7.50 ***** *** **'* low **** **** * months *** *** $*.**

****, ***** ** **********'* ************ ***** *** deal, *** ******* ***** was ***'* ***** **** 'significant ****** ************* ************ seller's ********** ** ****** potential ** *** ******'. However, ***** ** ** discussion ** ******* ** other ********** *** ***** how '*************' **** **** is, ** ** ******** that **** *** *** Defenders **** ******. ***'* stock ** ********. ** 9 ******, ** ***** be ** $** *** it ***** ** **** to $* *********.

*** ***** *********** ********* *** ********'* ****** **** *** ******* The ********'* ****** $*** million ******** ** ***********:

****'* ***** * *** of ***** ********** ***** traditional ******** ************ ****** SimpliSafe's *********** *****.

John Honovich

IPVM | In reply to John Honovich | 01/08/20 03:14am

******* ** *** $*** million ** *********** *****, ADT **** **** ********* get *.* ******* ******** inquiries *** ****:

**** ****** **** ***** most ** *** ********'* ad ******** ** *****? $175 ******* ** * lot ** *****.

Undisclosed Manufacturer #1

In reply to John Honovich | 01/08/20 10:43pm

**** ****** **** ***** most ** *** ********'* ad ******** ** *****? $175 ******* ** * lot ** *****.

******** ** *** ****** Business ******? ***'** ****** this *****. * ** wonder ** *** *** this *****, *** ***** stock ***** ********* ** trend ********.

John Honovich

IPVM | In reply to Undisclosed Manufacturer #1 | 01/08/20 10:48pm

*** ****** ***** *** more ***** *** ********’* issues **** ** **!

** *** *** *****, it’s ** ************* ***** their *** **** ******.

John Honovich

IPVM | In reply to John Honovich | 01/08/20 10:51pm

*******, ** #*’* *****, ADT ***** ** **** nearly **% *****. ****** see *** ******** ****** for ****? * ********* Google ****** ****** ** immediate ************.

**** **** *** **** public ***** ****** ***** so * ***’* ***** this ** * ******, else *** ***** ***** have ******* ********* *** it **** ****** ****.

Larry Tracy

01/10/20 10:46am

*********** *********** ****** ** getting ******** ** *** companies. ***** ********* *** seeing ******* **** ** equipment *****. ****** ***** has ******* ***********.

***** *** **** *** the ******** ************ ** push *** ********** ******.

John Honovich

IPVM | In reply to Larry Tracy | 01/10/20 05:14pm

***** *** **** *** the ******** ************ ** push *** ********** ******.

*****, *** *** ******? I ***'* **** *** it ***** *** ***** of ********* *** ******* The ********* *** ***** be ******* ** **** on **********?

Larry Tracy

In reply to John Honovich | 01/25/20 11:36pm

* *** *** "*****", they ********* ***** ****** their *******, *** ****** the ***** ****** ** sales **** **** **, just ****** **** ***** calls ** ***** ******** has ** ***** ********. They *** ******* ********** in ** **** ******.

John Honovich

IPVM | 01/25/20 10:38pm

* *** ***** *****, ADT ***** ** **** 13% *** **, ** definition, ** *** ********'* purchase *****. *** ********'* founders ****** ********* *** some ****** *** **** be *********** ** *** where ** **** ** for ****.

Undisclosed Manufacturer #1

01/26/20 09:38pm

*** ***** *** ******** had *** ****** ** "bullish" *** *** **'* a "*******" ******. ********** the ****-**** ********* (** months) *** **** ****** and *** **'* ****** as ****. **** ** improves.

* ****** *** ******** side **** ******* ** I ******* *** **** dynamics ********** ***** ******** market **** ********** ******* the ********** ******. ** fact, **'* ********* ***, just **** ******* ** channels *** *** ****** to ** ***.

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