Integrators: Convergint Wants To Acquire You

By: Brian Karas, Published on May 06, 2016

Convergint announced their acquisition of Total Recall, their fourth integrator acquisition in 2016.

We spoke with Convergint's Executive Chairman and Co-Founder about their acquisition strategy, how they determine when and where to make acquisitions, and plans for the remainder of 2016.

How ** *** ******** ** **********

** * ************ **** ********* ******** *** **-********** ****** [**** ** longer *********], ********** ******** the ***** **** ****** their ************ ** ***** integrators.

***** *** * *** things **** **** ** integrator ** ********** ****** beyond ****** **** ****:

  • *******
  • ******** ***
  • ****** *********

Non-Corporate ******* 

**** ***** "**** ***** a ******* * **** acquisition ******", ******* ******* was *** ***** **** mentioned. ******  ******** **** ***** ***** to ** ** ******* of *** ** ********** as ****, ********* ****** focused ** * ****** line ***** *** ****** be * **** ***.

********** ********-************ ************ * **** *********, ** approach **** ** ******** at **** *********** *********.

**** ** * ***** Convergint *** ********** * significant *********, ******* $** in *******.  ** *** video, *** *** ** wearing * ****** *** (a ********* ** ***** ****** Fun/Caddy ***** [**** ** longer *********] **********).  ** *** think **** ***** ** entertaining, *** ***** ** a **** *** ** Convergint.  ** *** ***** "that ***** ***** **** at ** *******" *** most ****** **** *** be * ********** *********** target.

Regional *** *** *********

**************, *** ******* **** acquisitions ** * *** to ****** **** ********** areas ***** **** ********* lack ********. **** ******** both ** *******, *** increasingly ************* *********.  ****** cited ***** ********* **** Asia ** ****** ** a ****** ** ******* their ************* *********, ***** was ****** ******** ****************** ** ***.

***** ******* *** ****** as * ****** ***** they *** **** *** near-term *********, ** **** as ********** ******* ** the **.

Custom *********

********** **** **** **** for ********* **** ***** new ** ****** ********** *********, similar ** ***** ******, who had a **** ************ *******.  

********** **** ********** ******* up **** ******* ********** as **** ** **** they **** ***** "********** Connect" *******.  *** ******* program ***** **** *********** integrators *********** ** ***-*********** in ***** ***** ********** lacks ***** *** ***** presence.  ********* ** **********'* VP ** ********, **** Varco [**** ** ****** available],  **** ****** ****** them ** *** * feel *** ** **********'* overall ***** ** **** and ********** ****** *********** them *** * ********* acquisition.

Additional ************ ******* ** ****

*** ******* ************ **** intend ** ******** ********** regional ********** ************ ********** 2016.

Valuing *********** *******

****** ******** ** **** exact ******* *** *********** valuations, *** ***** **** "****, ******** (******* ** shrinking), ******** *************, ********* service ******* ** * percent ** ***** ********, scarcity ******, *** **********" were *** **************.  

** ***** ****** *********** prices ** ** * less **** ** ******** of ****** *******, ****** an ********** *** ***** up * ************ ****** post-sales ******* ******** ** similar *** ********.

Post ***********

******** ****** ******* ** **** their ******* *** * quick **** ** **** out *** *** **** ******* as Convergint ***** *** ********** **** of *** ******* ***** acquired ** **** ******* long-term.

**** ***** **** ***** *** of ***** ******** ************ has ***** ** ***** employees, *********, *** ******* revenue ***** *** *********** has **** *********.

Comments (14)

"We just had $2,000,000,000 in total sales and now we're giving away gifts and cash totaling $4,000. Thanks!"

I think you failed the culture test.

"I didn't become the world's richest man by writing cheques..." - Bill Gates (on The Simpsons.)

They are camera integrators and didn't know that lighting was essential to a good shoot?

Convergent Integrator Acquisition Shortlist

  • Bob Maunsell
  • M. Blanchard - Blanchard Security
  • Jon Dillabaugh
  • M. Silva - Silva and Associates
  • Tedor Gligorich - Serbcurity Inc.

I would be interested to know what impact is felt by local and regional integrators when Convergint moves in through acquisition or opening an operation. They must have enormous leverage and buying power with manufacturers. Is this like Walmart coming to town if you are the local IGA?

Convergint has traditionally been known to be a big Axis and Lenel shop. I asked, and they confirmed, that these are still their major go-to brands. I think that their impact on other local shops would probably depend on how much Axis/Lenel business that shop does and how many larger accounts they have.

If any local integrators that have been in one of Convergint's expansion regions has feedback it would be interesting to hear. You can email me privately if you don't want to post public.

but... does the newly minted regional convergint office know what they're doing? In some integrator roll-ups that's not been the outcome.

Rodney -

They're are acquiring what are typically regionally successful integrators, not distressed companies. They also prefer to keep the previous management structure in place, so I think these tend to be less disruptive overall than roll-up acquisitions where the acquiring company wants to take over and do everything differently.

Convergint announced another integrator acquisition, this one in NJ:

Acquisition of Corporate Security Services

Convergint just acquired another integrator, Go Security Solutions in Westborough, MA.

Convergint acquiring a competitor was awesome for our business. Their customers all received an over night rate hike and about half of their local office was laid off or forced out. Picked up experienced sales and install crews almost overnight. The previous comments above were correct that they are mostly a Lenel/Axis shop and those are two brands that we also sell and are definitely trending downwards.

I was a part of a Convergint acquisition that went poorly (as they usually do). All of the good management left post acquisition which left the weak managers behind looking out for self preservation. Morale was put in steady decline as a result.

The culture aspect of Convergint is lost through acquisition, and it has deteriorated across all offices through time anyways due to the focus transition towards month end numbers instead of customer satisfaction.... just like the publicly traded companies.

It is easy to say that these offices grow post acquisition, because they are strategically purchased in areas of absence to service the national accounts which generate the most revenue. Local accounts that once grew the acquired company are left neglected after being promised by local management that nothing would change and then they slowly fade away.

Name a global company whatever you want, but in the end they all operate the same. Some just have better PR than others.... even if it is continuing to preach the culture of V&B's that are no longer the life blood of the organization. The founders of this organization seem like great people, but they are no longer involved in the day to day operations of Convergint except to do magazine interviews that always seem to regurgitate the same information about how Convergint came to be.

How Convergint came to be and what Convergint is now are two completely different animals.

Another one: Convergint Acquisition Of Security Products Company, the 13th one in the past 2 years.

SPC is (or was) a multi-state integrator focusing on the banking industry.

 

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