Alarm.com Acquires Shooter Detection Systems
While Alarm.com is best known for its residential business, the company has just completed its 4th commercial acquisition, adding Shooter Detection Systems (SDS) to OpenEye, ObjectVideo, and Secure-i.
Inside this note, we share feedback from Alarm.com, examine the fit of SDS with Alarm.com's other commercial entities, the rationale for expanding into commercial, and how this compares to Canon and Motorola, other outsiders with multiple recent acquisitions.
Revenue *** ********* *** *********
*****.***'* *********** *************** *** ******** *** *********** ***** nor ******* ******. *******, ***** ***'* ********** ***** size, ** ******** ****** ******* ** be ***** $** ******* **** *** potential *** * ******* ********* ***** the *******'* ***** *** **** ***** record ** **.
** ** **** *****.*** ******** ********** on *** (*.*., * ****** ******** filing), ** **** ****** ***********.
Alarm.com ********* *******
*****.***'* ******* ****** * **** ******* dollars ** ****, ** ****** **** ******** *********** *****:
*** *******'* ******* *** ******** **** focus *** **** ***********, ********* *.* million *********** (****** ****'* * *** of *********** *** **********). *** ** their ***** ********* / ******** *** been ***, *********'* ****** ****** ************** ****** ******** *** *****.*** ********* a ********* ***** ***** ****, ****** Alarm.com *** ***** ********* *** *** a**** **** ********* ***** **** ***.
*****.***'* ****** ************** ** ~$* *******, ~8x *** **** *****:
*** ******* *** ******** ~$** ******* operational **** **** ******** **** *** past *** ***** ** **** **** valuation *** **** ** ******* **********.
Residential ********* ** **********
*****.***'* ******* ** **** ************* ****** residential ** ************ **********, ****** ** expansion ** ********** **** **********. *** company ******* ******* ****** * *********** 6.8 ******* *** ** ** ********* 24 ******* ***** **** ************** ********* security. ****, *** *********** ****** ** seeing ******* **** ******/****, ******, *** Simplisafe, ** **** * ***.
********************
*** ** *****.***'* *** *********** ** commercial, ****** **:
- ****:******-*, * ***** ******* **** ***, Secure-I *** ***** ** ** **** cloud ***** *******. *****.*** ****** ***** video ** *** ******** **** ******** base.
- ****:***********, **** * **** *******, *****.*** acquired **** ******** ** ** ***** OV ****** ** ****** ********,******* *** ******* ** ********. *****.*** ******** ********** *** *** engineering **** ***** ** *****.***'* **. These ********* ** ** ********* ***** analytics *** *** ********** **** *****.***'* offering.
- ****:*******, * ***-**** ******** / ***** company, ******** ** * $** ******* valuation. ******* ********* ** **** ** a ********** ** *****.***, **** * new ********** ***** **, ***** ********* by ~**% *** ******** ************ **** Alarm.com ** *** **** ****.
SDS ********** *** ****
*** *** ********** * **** ** Raytheon ******** ******* ********* ******* *** military ************ ***, ** *** **** decade, *** **** *** *** *** expanded ** ********** ************. *** *** website ******** ***+ ******** ***** **** Alarm.com ******* ****:
*** *** ******** **** **** *** enterprise ********* ********* ********* *** ********** offices, ****** *********, ****** ************** *****, event ****** *** *-** *******.
*** ******* ********* ** ********.
Fit ** *** **** *****.*** ********** *** *******
*** ** **** ***** *** ********** applications, ****** *****.*** **** **** **** they ** *** *** ******* ********* as * *****, *** ** ** emerging ******, **** ********* *** *********** with ******* *** *****.***, ******:
** ***** ** *** ******* *****, you *** *** ********. *** *** been ******** ** ****** ***********. ** do **** **** *********** **** ****** SDS *** **** **** **** *****.***, and *** ********** **** ******* ***** management ******* ** ***********, ****** *** business **** *** ********* ******* ********* with ***, *** ** *** **** with *******. *** ****** ** **** gunshot ********* ** *** ** **** a ***** ******** *** ****** ** emerging ** ******* ***, **** **** in **** ****** *** ****** **** widely ********. ** *** ********* ***** in *********** *****.*** ********, ************ ******* and *****.*** ****** *******, **** *** for ****** ********* ** **** ** bringing *** ** * ***** ******** by ************* ** **** ** *****.*** for ******** ********.
**** **** *** ***** *** ******* detection ****** ** ******* ** ** do ***** *** ******. *** ********** is **** ** ** * ***** but ********* *** **** * ******* number ** *********, ********* ** *** video ******* ********* ****.
*** ******* ** *** ***** ** these ******* ** **** **** ****** practical *** ******* ** *** ************* very **** ***** ** ** ****** shooting. ** *** ***** ****, ***** rare, ****** ********* *** ********* ***** deadly.
More ************ *** ******
*****.*** ***** **** **** **** "******** to ****** ** *** ********** ********* and **** ** ****** ** **** area."
***** *****.***'* ********** *** ******* ****** and ********** ****** ***********, ********** ********* certainly *** *********.
Comparison ** ***** *** ******** ************
***** *****.***, *****, *** ******** *** have **** ******** ********** ******** ************ in *** **** *** *****, *****.***'* ones **** **** **** *******. *********, that ******** **** *****.*** ** ************* smaller **** ***** *****-******* ****** *********.
*****.*** **** **** ***, **** *******, will ** * **********, "******** ** be *** ** *** ******** ********** team." ** **** ** *********** ** see **** ***** ************ *****.*** ***** and *** **** **** ** ******** these **********.
Vote / ****
*********** ****, **'** *** *** ** turns ***. **** ***** *** ***** people ** ******* **** ******, *** has ***** ********. * **** ** use *** *** ********* ****** ** the **** ***, ***** ****** **.
*** **** **** *** ********** **, sorry, *** * *** *** **** names ** * ****** *** * signed **** ****.
**** ***** ****** *** *** **** detection ** **** ***** *** *** neighborhoods, **** *** * ****** **** a *** ***********. ******* ******* ********* inside ********** *** ********** ********* **** ultimately ******* **** ****** *********.
**** ****** ** ***********. *** ** they ****** *******......
***** **** * **** ******** ****, if *** **** ****** *** ********** gunfire ********* ********* *** ******, ***** have **** ** *** ******* **** Amberbox.
** *** **** ****** *** ********** gunfire ********* ********* *** ******
**** ****** * **** *****. * don't **** ** *****.*** ******* ******* detection *** * ******* **** ****** to ***** *** **** **** ********** to *** * ****** ** ******* it *** **** *************.
*** ******** ** ** *** *** for **** *****.*** **, *.*., ***********, SMB, *** **********. ** ***** **** be * **** **** *** **** but **'* *** ** ******* *********** with ***** ******** **********.
**** ****** ** ***********. *** ** they ****** *******......
** ********, ******* ****** **** *** worth **** **** *****.***... * ** kidding *** *** ** ****.
*****.***, ******** * ******** ******** ** Verkada.
** **********, ***** ** *** ****** just ***** *** *******, ********* *** combined ****** ** **, ****, ****, BMW, *****, *******, ******, *****, ***** Martin, ******, ********** *** *******.....******** (********* to ********.***).
* ***** ** ***** ** ****.
**'* ******* **** ******** ** *** cave ***** ** **** **** ******** in **** ******** *** ******* ** a "********"
******* ****** ***** ***** ******...
* *** ** *** **** ************ with ***** **** ****** ****** *** valuation **.
************ **** *****
*******: ** *****,******* ********* ******* ********* * "********* Alliance **** *.**** ** ********** ***** Detection ******".
*** *****.*** ************ **** ** ******* of *.**** *** *****.
* ****** #* ** ****** ***, just ** ****, ****** ***** ******* about *** ************.
******, *****.*** **** $**.* ******* *** SDS, *********** ** *** **** ***:
** ******** **, ****, *****.*** ************, one ** *** ******-***** ************, ******** 100% ** *** ****** *** *********** ownership ******** ***** ** ******* ********* Systems, ***, ** ***. *** ******** an ****** ******* ********* ******** ******* the ******** ****** ****** ******* ********* System, ***** **** * *********** ** acoustic *** ******** ******* *** *********** algorithms ** ****** ******** *** *********** shooting ******** ******* ** ******** ********* and ******** *****. *** *********** ** SDS ******* *** ********** ********* *** helps *** ******** ****** ********** *** enterprise ********* **** *** ******* ********* solution. ** ************* *** ***purchase ** ***% of the issued and outstanding ownership interest units of SDS, we paid $**.* ******* ** **** on December 14, 2020 [emphasis added]
* ***** ** **** ** * competitor ** **** ** *****.***'* ***** business, ** **** **** ** **** as *** **** *** **** ** this.
* ***** '*** ****' *** **** was **** *** *****.*** ***********. * think **'* * ***** **** *** SDS. **** *** ****! **** **** have **** ******* ** ********** *** I ***** **** *** ***** ** struggle *****. ** **** **** ** focus ** ********** **** ****** ******* someone *** ** ********** (**** **** did **** *******) *** *** ***** niche *******.
***** *****'* ********* **** * ***'* see, *** **** ** *********** ** looks **** * ****** ** ******* and *** ****** ** ****** ****.