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.
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......
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]