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.
I could be seen as a competitor to some of Alarm.com's video business, so keep that in mind as you read the rest of this.
I voted 'bad deal' but that was from the Alarm.com perspective. I think it's a great deal for SDS. Good for them! They will have some success in commercial but I think they are going to struggle there. If they want to focus on commercial they should acquire someone who is successful (like they did with OpenEye) not all these niche players.
Maybe there's something that I don't see, but from my perspective it looks like a sequel to Rudolph and the Island of Misfit Toys.
Interesting play, we'll see how it turns out. They chose the right people to partner with though, SDS has great products. I used to use the old Boomarang system in the sand box, never failed me.
When their market was gun shot detection in wide areas and bad neighborhoods, that was a market with a few challengers. Selling gunshot detection inside commercial and government buildings will ultimately compete with camera analytics.
This should be interesting. Now if they bought Verkada......
Seems like a more sensible play, if all they wanted was additional gunfire detection offerings for indoor, would have been to buy someone like Amberbox.
if all they wanted was additional gunfire detection offerings for indoor
That raises a good point. I don't know if Alarm.com decided gunshot detection was s segment they wanted to enter and they were determined to buy a player or whether it was more opportunistic.
The category is an odd fit for what Alarm.com is, i.e., residential, SMB, and commercial. It still good be a good deal for them but it's not an obvious compliement with their existing components.
Alarm.com, actually a dinosaur compared to Verkada.
In comparison, Tesla is now valued just under 500 Billion, exceeding the combined values of GM, Ford, Fiat, BMW, Honda, Hyundai, Nissan, Mazda, Aston Martin, Subaru, Volkswagen and Daimler.....combined (according to Benzinga.com).
On December 14, 2020, Alarm.com Incorporated, one of our wholly-owned subsidiaries, acquired 100% of the issued and outstanding ownership interest units of Shooter Detection Systems, LLC, or SDS. SDS provides an indoor gunshot detection solution through the Guardian Indoor Active Shooter Detection System, which uses a combination of acoustic and infrared sensors and proprietary algorithms to detect gunshots and communicate shooting incident details to building occupants and security teams. The acquisition of SDS expands our commercial solutions and helps our partners outfit commercial and enterprise customers with the gunshot detection solution. In consideration for the purchase of 100% of the issued and outstanding ownership interest units of SDS, we paid $26.6 million in cash on December 14, 2020 [emphasis added]
Agree
Disagree
Informative: 1
Unhelpful
Funny
Create New Topic
Login to read this IPVM report.
Why do I need to log in?
IPVM conducts reporting, tutorials and software funded by subscriber's payments enabling us to offer the most independent, accurate and in-depth information.
Comments (13)
Undisclosed Manufacturer #1
I could be seen as a competitor to some of Alarm.com's video business, so keep that in mind as you read the rest of this.
I voted 'bad deal' but that was from the Alarm.com perspective. I think it's a great deal for SDS. Good for them! They will have some success in commercial but I think they are going to struggle there. If they want to focus on commercial they should acquire someone who is successful (like they did with OpenEye) not all these niche players.
Maybe there's something that I don't see, but from my perspective it looks like a sequel to Rudolph and the Island of Misfit Toys.
Create New Topic
Michael Gonzalez
12/15/20 08:27pm
Interesting play, we'll see how it turns out. They chose the right people to partner with though, SDS has great products. I used to use the old Boomarang system in the sand box, never failed me.
Create New Topic
Undisclosed Manufacturer #2
When their market was gun shot detection in wide areas and bad neighborhoods, that was a market with a few challengers. Selling gunshot detection inside commercial and government buildings will ultimately compete with camera analytics.
This should be interesting. Now if they bought Verkada......
Create New Topic
Undisclosed #3
I bet it was that relationship with Feevr that really pushed the valuation up.
Create New Topic
John Honovich
Update, Alarm.com paid $26.6 million for SDS, as disclosed in its 2020 10K:
Create New Topic