Alarm.com Acquires OpenEye

By: John Honovich, Published on Oct 21, 2019

Alarm.com is targeting commercial expansion and now they have a commercial cloud VMS with the acquisition of OpenEye.

In this note, based on speaking with executives at both companies, we examine the pros and cons of the acquisition, how it impacts Alarm.com in the commercial space and what it does for OpenEye.

For background on OpenEye, see our OpenEye Apex Cloud VMS Test Results.

Financials / *********

***** *** ************ *** not ******** ******* *** price ****, ** ***** expect ** ** ** in *** $** ** $100 ******* ***** ***** on ********** ******* ******* in *** *** **** of ********. ******* *** not ** **** ** an *********** *** *****.*** has * ****** ****** valuation ** *****.*** ***** have ** *** ***** afford ****** * ******* for *******.

****** - ******* *** valued ** ~$** ******* in *** ****, **** Alarm.com ****** $**.* ******* for ** **% *****. Additionally, "** ****-*** ** up ** ** ********** $11.0 ******* ** ******* if ******* ******** **** targets *** ***."

Fit *****

** ***** *** *** is *****. *****.*** ****** a ********** *** ******** to ****** ****** *** plans ** ********** *********. OpenEye ****** ******* *** can ******* **** * larger ******* ** **** its ********.

********, *** *** **** a **** **** ** becoming * ***** ****** in *** ********** ******.

OpenEye ********** ******* *****, ** **** ****-****

*** ******** ******* ** this **** ** **** it ** * "********-***** acquisition", *** * ***% acquisition, **** ******* ***** retaining * ******** *****. OpenEye **** **** ***** them *********** ** *** upside ** *** **** term. ** ** **** beneficial *** *****.*** ******* OpenEye ***** **** ****** incentives ** **** *** grow *** ********.

Brand, ********, ********** *******

*****.*** **** ****:

******* **** ** * subsidiary ** *****.***. *** company **** ******** ********** under *** ******* ***** and ** *** ** the ******** ********** ****.

**** ** ********** ** us ***** ******* ** retaining **** ******** *****, their ******** **** **** with ******* ***** ******* (~20 *****) *** ** do *** ****** ** as *** **** *** want ** ******* ***** something ***.

** ** ********** ** predict *** ******, *** this ***** **** *** type ** **** ***** management ***** ************ ****** examples ***** **** **** as **** ** **** can (*.*.,*****/****).

Giant ** ***********

*****.*** ** * ***** player ** ***********, **** over * ******* *********** and **** $*** ******* in ****** ******* ******* ~20% ********:

*** * ***** ***** of **********, *****.***'* ******* is ***** ** ********'* ~$500 *******.

Minor ** **********

***** *****.***'* ******* ** close ** ********'* *******, Alarm.com ** ** ************* player ** **********, ****** started ** *** ******* for ****** *** ** their ********* ** ***********.

*** ****** ** ********** for *****.*** ** **** it ** * ***** market (**** ** ****** in ******* ********* ** how ** ** *******) and ** ** *** increasingly ****** ** *** cloud.

********* ******* *** ***** Alarm.com * **** ****** the ********** ****** ** grow.

Funding *******, ***** ******, **** ******

*****.*** ** ******* ** top-level ******, *** ******* out *********. ******* ********* excitement ***** *** ********* that *****.*** ** ******* in *** *** ******* to ************* ****** ***** teams ********* *********** *** sales.

Relationship ** ******-* *** ***********

**** ** *** *** video ******* *********** *****.*** has ****. ** ****,*****.*** ******** ******-*, **** ***** ** an **** **** *******. That *** *** ****** a *********** *****.*** ********. More ********,*****.*** ******** ****** *****'* R&D ****, * **** **** resulted ** ***** ****** cloud ***** ********* ********. We ** *** *** any ******** **** ******-* but ***** ** ********* for ***** ***** ***** video ********* **** *******, who ** *** * specialist ** *********.

Competitive ***** **********

******* ** *** **** reasonable *********** *** *****.***'* commercial *********. *** *******, in ******** **** ****** ** covered *****.***, *******, ***** Eye, *******, ******* *** Verkada.*****.*** ****** **** **********,******* ** (* ***********) part ** *********, ***** / ***** Eye ***** **** ******** an *********** *******, ******* is **** ******* ******* and ******* ***** **** billions (******** *********).

Outlook - ******** *** *** ******?

*** *** ********* *** almost ********* ****** *** the ***********. *** *** question ** *** ****** or *** **** *** become ** **********. ******* has ********* **** ******* their **** *** ***** and ************ *********. *****.*** has ***** **** * major ********** ******. *** best-case ******** ** **** the *** ********** **** other ******** *** **** off *** ***** ********* is *** **** **** other ***********, ******* ********, without ********** **** * combination, *** ** **** focused *** ******** ** the ********** *****.

Vote / ****

Comments (23)

John Honovich

IPVM | 10/21/19 09:59pm

** *** *** **** details. * ********* **** quickly ** *** *** initial ******** **. *********, areas ** *** *** cover, ***., ****** *** us ****.

Brian Karas

10/21/19 10:03pm

******** ** **** *** the **** ** *** Sale!

Undisclosed Manufacturer #1

10/21/19 10:07pm

"**...*'* ***, ********* ** Alarm.com....Give ** **** *****, your ****, **** ******* dealers ******** ** ******* free, *** ******** ****** of **** ******* ******"

John Honovich

IPVM | In reply to Undisclosed Manufacturer #1 | 10/21/19 10:12pm

*** *** ******* **** remark/joke? *** ** '****** ******' **?

Undisclosed Manufacturer #1

In reply to John Honovich | 10/21/19 10:20pm

****.

*** **** ***** *********** that ***** *** ****..."**, I'm ***, ********* ** Alarm.com." * *** *********** the **** **** **** alarm ******* *** ****** diminishing *** ** ******* monitoring **** ****, *** as **** ********** **** alarms **** ******** ** their ***********, ********* ******* station **********. *** **** is * **** ** words ***** ** *** base ** *** ****** of *******, (******** ********), telling ***** ******* **** Alarm.com *** * ******* to **** **** **** their ******** *** *************, especially ** **** **** into *** ********** **** of *** ********.

John Honovich

IPVM | In reply to Undisclosed Manufacturer #1 | 10/21/19 10:36pm

****** #*, * ***'* listen ** *****!

**** ***** ******* *** facing *********** *** ** monthly ********** **** ****, and ** **** ********** have ****** **** ******** to ***** ***********

****'* ** *********** *****. I ** ******* ******; my ******** ********** ** the *********** ****** ** that **** ** * big **** / *****. The **** ******* ********** your ***** *** *****'* **** **** **********.

Undisclosed Manufacturer #2

10/21/19 10:12pm

********** ***** **** * good *****. ******** ** the **** *** ** years ** **** ****. I ****** ** **** Eye **** ***** * full ******** *** ******** solution **** ******** ** build ******** ************ **** hardware ******** *** *********** on *** ******.

John Honovich

IPVM | In reply to Undisclosed Manufacturer #2 | 10/21/19 10:34pm

****** ** **** *** will ***** * **** hardware *** ******** ******** like ********

******* *********:

* *** **** ** our ***** ** *** “open ***** ********” ** we **** ** ****** that ********* ** **** as ********.

** ********** ** **** Avigilon ** **** *** clearly **** *** ******* their *** ******* ** superior ***** ******* ******* its ******* **** ** a ****** ** ********** sale.

Undisclosed Manufacturer #3

10/21/19 10:42pm

**** **** **** *** effect ** ******* *** their ******* *** (***’* by *******)?

John Honovich

IPVM | In reply to Undisclosed Manufacturer #3 | 10/21/19 10:57pm

******* **** ******** ** usual. **** *********, *****.*** does *** ****** ******* or ******** **** **** OpenEye ****. *** *******, if **************, ******* ****** to ** * **** with ********* *********** ************ (a ****** / **** Alarm.com **********), * ***** see **** ***** ** issue *** **** ******* does **** ******* ** not * ****** ** Alarm.com *********, **** **** I ***.

Undisclosed Manufacturer #1

10/21/19 10:54pm

****

* ***** *********** **** me ******** **** ****, and **** ** ***** alarm ****** *********, **** that *** ***** ** medium ***** *********** ***** installation ******** ** ***** to ** ******** ******** by *** *** ***** direct *********.

******* ******** *** ******* expanding ***** ***** ************ services, ***** *** ** required ** **** ************** in *** **** ******. I **** ***** **** some *** *********** ******** will *** *** ******* to ****** ******* ***** verification. ** **** ** a ************* *****, ***** verification ** *** ******* station **** ***** *** cost ** ******* **** to *** ********, ** it ** **** **** labor ********* **** ******** alarm *********, ***** ** very *********.

*** **** ** *****.***'* purchase/merger **** *******, *** the *********** ***** ******* that **** ** **** them *** *** * way ** ****** *** reduction ** *****-**** ********** income.

* ***** ******* ******* owner **** ** ******** that **** *** ***** to *** ***** ************ that **** ********** **** their ******** ******** ********, and ***** * **** package **** ***** ************ for ******* ** ****.

******* **** ** ***** Alarm.com ** *******?

John Honovich

IPVM | In reply to Undisclosed Manufacturer #1 | 10/21/19 11:06pm

#*, *********** ******. *****, IPVM *****'* **** *** residential ***** ** **** so * ***'* ** sure ****** ** * mentioned ********** * ***** there ** * ****.

*** **** ** *********** does *** *******, *****.*** has *** **** ** saturating ***** **** *********** market. ** ** ***** to ******** ******* **% a ****, **** **** to ******.

*****.***'* ********/****** **** *******

** * ***** ** clarification, **** ** ********** not * ******, *****.*** does ~*** *** ******* of *******.

Gerald Becker

10/21/19 11:33pm

*** ******** ** **** and *** ***** **** at *******. **** ******** and ***** ***** ** talent ** *******. ******* forward ** *** ***** to ****.

Buddy Mason

10/22/19 03:06pm

******'* ** *** ******* for **** *** ***** team ** **** ***. Have ****** ** **** them ****** **** **** the **** ***** ***** and **** **** ** rock ***** *** *******. I **** **** **** cash ********* ** **** help **** ******* ***** product ***** **** ****** to **** ** **** our **** ***** ********. Good **** *** ***!

Undisclosed Integrator #4

10/22/19 10:33pm

* **** **** ***** happy **** *** ******* product *** ****. * just **** **** **** doesn't ****** *** ************ that **** **** **** DMP. *** *******/*** *********** is ****** ** **** and ****** ********* **** no-one **** ***. ***'* Virtual ****** ** **** a ********** **** *****.*** so * ** ****** that **** *****'* ****** things ** *******.

*** ********* **** **** much ******* **** ******* than ******** ** *****. The *** *** ********* (although **** *******) ** superior *** *** ******** staff *********.

John Honovich

IPVM | In reply to Undisclosed Integrator #4 | 10/23/19 11:22am

******* ******** ***** *** question:

********** *** ********* ***** data **** ********** *********, and ******* ** **** actionable ************, ** *** of *** ******* ******** of ******* *** ********. We *** ********* ** an **** ***** ******** and ******* **** *********** partners ** ***** **** value ** *** *********. This ******** *** *********** with ***.

David Pilchick

Brooklyn Low Voltage Supply
10/22/19 11:39pm

******** ** *** **** at *******

**** *** * ***** group ** *****

**** ****** **** ***** news

* **** ******* ** seeing **** *** ****** will *****

Sean Nelson

Nelly's Security
10/23/19 01:38am

******* **** *** *****.***. they ******** ** ********* and *********** ********** ** be **** **** **** just * ****** ********** service *** ***** ******.

Rick Caruthers

Galaxy Control Systems
10/23/19 01:08pm

*** ******** ***, **** Alarm.com ** ***** * commercial ****** ******* ************ to ***** *** *** offering? ** ** ***??

Brian Rhodes

IPVMU Certified | In reply to Rick Caruthers | 10/23/19 02:41pm

** ** ** *********** question.

*****.*** ******** ********** ***** own ****** ******** (** covered *******.*** ******** ****** *********) **** **** ******* Security ******** *** ***** web-based ******** **** ******* essentially ** '******' ****** management.

*** ****** ******** *** is *** *****-****** ********** and *** ** **-******* server, *****, ** ** but **** ** ** or ** ****** **********.

** **** ** ******** ADC's ****** ******* ***** and ************.

Rick Caruthers

Galaxy Control Systems
In reply to Brian Rhodes | 10/23/19 02:56pm

**** ***** **** **** are ******* ***** ******** this ***** ******* **** Mercury ******** ***** **** a ***** ****** ****** commitment. * ***** *** next ******** ** **** the ******* **** ** them ** * ****** access ******* ******* ** commercial...This ** * ***** different ***** **** ******** codes ** ******** ***** door ** ***** **** or ******* *** ****** of *** ****** ****.

John Honovich

IPVM | 11/08/19 08:54pm

******:*******'* ** **** ****************** *** ***** **** and **'** ******* *** report **** **, ****** below:

******* *** ****** ** ~$72 ******* ** *** deal, **** *****.*** ****** $61.3 ******* *** ** 85% *****. ************, "** earn-out ** ** ** an ********** $**.* ******* is ******* ** ******* calendar **** ******* *** met."

****,** *** ** **** transcript, *****.*** **************** ** ****** *** nothing **** * ***** particularly **********.

Lee Jones

Support Services Group
11/09/19 08:38am

****.. *** *****… “** this ****, ** ******* …. **** ** ***** wrong ** *** ****** (remote-monitored ***********) *** *** it ***** *** *****”? Plus *** “****** ** the *********** *******”. **** we *** ** *** back-story.
>
**** ** ** ******** when **** ****** ***** blare *** *** *****, in **** ******* ****, residential ****** *******, ** whenever ** **** *** left **********. *** *********** halted *** ****-******** ****** for ********* *******, *** fined *** ******* ***** for ***** ********* ****. The **** ***** ** developing *** ******** ** monitored ********* **** ******…. slow ** ** ********, causing **** **** *********; expensive *****/****. **** ****** are *** * ***** accessory ** *** ******** everywhere… **** **** **** disruptive ***** ******. *** vehicle ***** ***** ******* was ************ ****** ** the ******* ***** *********, not ** ********** *********** and ******* *****. ********** the **** ***** ******** grew *************, ********* *** still *******. **** ***** to ******…. ******* *********** property ***** ******* *** beginning ** *** ***** same ****** ******** ** vehicle ******.... ****** * 911 **** ****** ** witnessed…. *** *** ***** of *****.***/ *******, (********* monitored ********). ***** **** theft ********* ** ** locked ******** **** ******* homes. ******* ****… *** enforcement ******** *** ******* because *** *** **** their ********* ******** ** they ** *******, *** not **** ****** ** NOT ******* ** ***** from ********** *****.
******: *** *****, ******* Services *****