Convergint Acquired By Ares Management

By: John Honovich, Published on Feb 05, 2018

Convergint literally has been acquiring integrators left and right, with more than a dozen in the past 2 years.

Now, it is Convergint's turn to be acquired, by an "alternative asset manager" named Ares. Who is Ares? What does this mean for Convergint? How will this impact rival security integrators?

In this note, we share feedback from Convergint and examine these questions.

********** ********* *** **** acquiring *********** **** *** right, ******** **** * ***** in *** **** * years.

***, ** ************'* **** ** ** acquired, ** ** "*********** asset *******" ***** ****. Who ** ****? **** does **** **** *** Convergint? *** **** **** impact ***** ******** ***********?

** **** ****, ** share ******** **** ********** and ******* ***** *********.

[***************]

From ******* *** ** ****** ****

********** ** ***** **** a ********** ***** ** a *** *****. ********** previously *** ***** ***** ******* ********, ***** *** ****** ~$4 ******* ***** ********** and ~** *********. ***, Convergint ** ***** ****** **********, * ******** ****** company **** $***+ ******* in ********** *** ~*,*** employees.

*** **** ********** ******** Convergint's *** **** ****** size *** *** *** owner's ******* ** ******** funding ******. **** ** 2012, **** *** ******** Convergint,********** ******** ******* *** ~$240 *******. ***, **********'* ******** revenue ** ****** ****** that, ****** **** ** organic ****** *** ********* 19 *********** ** *** interim.

********** ********* ** **** what ********* ***** ***** them:

******* ****** **** *** good ********* **** *** profitably ******* ** * good ********. *** ******** industry *** ******** **** a **** ****** ******** for * **** **** now *** ********* ** continue ******* ** **** single ***** ******* *** the *********** ******. ********** has ******* ****** ***** growth *** ****** *** entire ******* *** ******** accelerated ****** **** *** past *** *****. ** expect **** ****** ***** growth ** ******** ******* a *********** ** ******* growth *** ********* ************. Our ****** ******* ******* has ******* ** ** attract **** ** *** best ********** (*********) *** leaders ** *** ******** as **** ***** **** of *** **** **** local *********** ** **** us ******** ** *****. As * ******, *** strong ******* ******* ******, in * ******* ********, allows ** ** ******* strong ********* ********.

Valuation *** ****** ******* *********

***** ********** **** *** disclose ********* *** ******* projections, ****'* ******** *** Convergint's ******* ********* (**** Ares) ** ~$* ******* and **** ***** ******* goal ** * ***** will ** *********** ~$* billion. ** **** **** on **********'* ****** ***** statements ***** ~$*** ******* revenue. ***** ***** ******* and ******** ******, ** would ****** * ********* of ** ***** * - *.** *****. *** given **********'* ********* **** they ****** ******-***** ****** to ********, ******** **** 15% ****** ****** **** over * *****, ***** mean **********'* ******* ***** at ***** ****** **** where ** ** *****.

******:********** **** **** **** do $* ******* ** revenue ** ****, ****** **** ** organic ****** *** ******* acquisitions. **** ******* ******** our ******** ** **** pursuing ~$* ******* ****** revenue ** *** **** 5 *****.

Ares ****** ********

*** *** **** ****** owner **** *** ****** afford ** **** **********'* desired ********* ********** *********** plan. ** ********, ********** was ******** ***** ***** relative ** ***** ********** smaller ***** ***. *** deal ****** *** ** realize *** **********, **** to **** **********'* ****** and ********** ** ******** its ***** ********* *** integrator ******.

More ********** ************ ******

**** **** ***** ****, it ** ***** **** for **** ** ********** Convergint ****** ******* $***+ million ** **** ** integrators ** *** **** few *****. ***** *** **** **** preview, ** ***** ********** has * ***** ***** for *** ***** ****, half-joking **** *********** ****** bring ***** ********** *****. It ** ** **** now.

*** **** *********** ******* Convergint ** ******** ****** premiums *** ******** *********** that ***, ** ***, other ********* ***** ** willing ** ***.

Convergint ********* *********

**** **** ********** *** with ***** ******** ***** KRG, ********** ** ********* their *** ***** *** the ***********. *** *******,****' ***************** ** ***** **** it ** ** ***********:

*************'* ***** ***************** ****** *** **** Convergint *** **** ********, emphasizing **** **** **** 'partners' **** ****:

********** ********* ** **** that:

***** ** ******* ********** in ****, ** **** had **** ********* ********. We ********* **** *** a ****** ********* ******* that ******** ** *** Convergint *******, ********, *** leadership ****. **** *** been **** **** ***** partner ** **** ***. Each ** *** ********* partners **** ****** ** to **** ***** ********** the ******** ********** **** in ******** *** *** Convergint ******* *** **********. With **** ** **** a ******* **** **** help ** **** ********** to *** **** ***** of *** ********* ******* to *** *** *** helped ** ****** ****** Convergint’s ***** ** ****** service *** *********. ** see **** ** * true ******* ** ****** Convergint’s ******.

***** ********** ** ********* 'partnered' **** ****, *** fact ** **** **** own ********** *** **** ownership **** **** **** certain ****** *** *******. Convergint ******** ******* ******* on *** ***** *** communication **** *** ******** that **** ******** ****.

Benefits ** ********* *********

*** ******* ** ********** obscuring ***** ********* ** to ***** ********* ******* / ******** **** **********'* culture. ********** *** ****** hard ** ***** *** market * *** ***********, as **** ***** ********* ******* **** ************:

** ********, $*** ******* investment *****, **** ***** new ***** ****, *** typically **** ******* ** maximizing *** **** *******. The ********* *** ******** for ********** **** ** to ******* ****.

Exit ******** - *** ** ******

********** ********* ** **** that *** **** *** Ares ** ****** **** years ** *** ******:

**** *** ***, ** have ******* ** ******** a ****-**** *********** ******** that ** **** *** our *********, *** ********** and *** ***********. ** never ****** ** ***** a ******* *** *** purpose ** ******** ** to **** * ***** dollar. **** *** **** when *** **** **** the ******* ** **** when ** *** **** colleagues *** ** ** true ***** **** ** have **** **** ********** across *** *****. ** expect ** *** ******* growth **** *** **** of ****. ** ** true **** ** **** point **** **** **** to ******* * ****** for ***** *********, *** we ******** ** **** to ***** **** ****-**** sustainable *******. ** ******* by ***** ****, ******* it ** * *****, 7 *****, ** ******** 10 *****, *** **** financial ********** **** **** care ** ******.

***** **** ***** ******, we ***** ****** ***** exit ** ** ***** far ** *** ******.

Outlook - ********** ********** ***** ** *** ****

*** ***** ** *** sure, ****, ***** ***** investment ********, ***** *** have **** **** **** if **** **** *** committed ** ************* ******* Convergint. ** ****, ** would ****** **********'* ***** acquisition ******** ** ******** into **** *** ****. And ** ** ********* in ************* ************ ********* ********** Market****, ***** ** ** doubt **** **** ** approach **** ************* ******* the *********** ********* ** security ***********.

*** **** ******** ** how ********** *** ******** will **. **** **********'* expansion *** ********** ************ create * ****** ********** that ********* *** *********** market ** **** ** collapse ***** *** *** weight?

Comments (12)

*** *** *** *** your ***** ********** ****** got *** **** ** is ** **** *** trunkslammer ** **** '**** that ******* **** *** because *** *** ***** running *** ***** ****** to ******? ****'* *** well *** **** *** stockholders *** ***** * happydance *** *** **** this **** *** ********* procure ******** ******** ********* that ****' ****? (*** all *** ********** ************ are ***, ***** *** some ****** ** *****. But ***** *** **** some *******...)

***, ******** ** ****....

***** ** **** *** ****** *** **** *** **** ****** days, *** ********** **** *** **** ****** *** ** *** perfect ****.

****, * ** *** sure *** ***** ** not **** ** * discussion. **'* ******** **** read, ******* **** *,*** reads.

* ******* *****'* **** passion ***** *** ** many ******** ****** ******** deal ** ******* ******* Convergint. ****, ** ******, is ****** ** ****** as *** ****** *********...

**** ** * **** interesting *******.

* **** *** **** conversations **** *** ***** with ******/**********'* ** *** sizes **** ****** ** what ** **** ******** may **** ****.

** **** ** ********** can ******** ** ***** value, ** ** ******* acquisition ** ******* ******* growth. **** ** * tale **** **** **********'* should **** **** * smile.

*** ******* ** ***** up ** ********* **** most ******** ****** **** to ** **** ** do ** **** *****.

**** ***** **** *** American ***** ** ***** and **** *** **** it ****** ** *** industry

********* **** ******** ** build ***** *** *** the *********** ******** ** build ** ********* *******

* **** **** ****

*****, ****** *** *** feedback!

** **** ** ********** can ******** ** ***** value, ** ** ******* acquisition ** ******* ******* growth.

****'* **** * ** trying ** ********** - how *** **** ******** value? ** ***** *****, how ** ********** **** valuable ***** ****** * premium *** **** ** these ********** ***********? *** there '*********'? ** *** there '********* ** *****'? Is ***** **** **** of '******* ******'?

**** ** * **** that **** **********'* ****** read **** * *****.

***, ** **** *** get ********** ** *** them ***! :)

**** ** *** *** first **** ********** ****-**. Red **** *** ****, at * ******* *****, a ****** ***. *'** heard ***** ***** ** various ***** *********** ********** talk ***** ********* ****** roll-ups. * ** *** doubting ***** ** ***** to ** ****. * am ******** ****** *** operationally, **** * ****-****, run * ***** ********** effectively.

** *** ***** ****, Convergint **** *** ***** and ******* **************, ********* and ***** ****** ******** due ** ******' ******* in ******* **** * well ****** ****** ********* of ********** ***********. ** the **** ****, ** the ************ **** ***** the ********** *********** ****** or **** ********, *** quality *** ************** ** Convergint's ********** ******* *** suffer. ******* ** ******* where **** ******** ******* compete *********** *** ****** act ** ******* *********** with **** ****** ********* depth.

** ******** ** **** replies ****

*** ****** ** **** first ******** *** **** answered ** ***** ******** including *****

*** ***** **** **** are ******** ** *** larger ******** ** ***** offerings

******* ****** *********/********** ******** will **** ******* **** them ******** ** * larger **** ******** *** international *****

*** **** ** ********* and ********* ** ***** will ** ********** ** their **********'* ********* ** really ***** **** *** together *** ** ********* and ***** ** **** advantage ** ****

*** **** ** * lot ** *** ****** mergers *** ************ ** the ************ ****

***** *** * *** that **** **** **** to ****** ***** *** businesses ******** ** ****** real ***** *** **** there *** ***** **** struggle *** **** *** entities ******** ***** *** corporate ********

*** **** ******* **** come *** **** *** road ** **** **** in **** **** ** accomplish ****

** *** ** *** integrator's ****** ** ********** by **** ****

*** *** ** **** about ********** ****** ****

** ****** ** *** right ***** *** ********, most **********'* ***** *** refuse

* ***** *** **** about *** **** **** when ******* ****** * business

**** **** ****** *** largest **** ********** ****** in ***** ***** *** look **** **** ** the "***** *** ** go" ** ** *********** to *** **** **** of ******* ** *** point * ** ****** to ****. ****** **** is ** *** ***** good ** ***** ***

*** **** ******** **** remain, ** * **** or *** **** ***

**** **** ***** *** burn (********* ***) *** to *** ******** **** on ***** ************

** **** **** ****** manage ***** ******** **** and ***** *** *** value *** ***** ** it

* **** ** **** knowledge ****, **** ********** my ******* *** **** its *****

* ***** ******* **** articles ****, **** ** the **** **** !!

*** ***-*** ** *** ***** ******* *** *** **** ** any ********* ********** ** ****, **** ****** “*****” *********** *** included.

****, **** *******.

*** **** ***** **** **** ***** ******** *** ***** ***** new “*******”?

**********'* ***** *********** *** ******* * statement **** ****. **** is *******.

*******,**** *********** ***** *********** ******* * ******** quote ***** **********:

“********** ** * ****** in *** ********, **** a ****** ******* *** a ************ ***** ****** of ********* *** *********** of *** ********** *** delivering *********** ******* ** its *********. ** ***excited ** ******* **** *** ********** ********** **** and look forward to supporting the company in its next phase of growth,” said Matt Cwiertnia, Partner and Co-Head of North American Private Equity at Ares Management. [emphasis added]

***** ******* ***** ****, I ***** **** ***’* interested ** ***** *** branding ************* ****, **** the ********* ******* ** Convergint.

** **** ***, **** are **** **** ******* to ******* *** *********** illusion.

******* *** *********** ********

***'** *** ***** ** be ******* ** **********'* next ********** *********...

* ***** ******* ** an '********' ** ****** strong. * **** ** more ** * ******** since ** **, *.*., not ******** *********** *** *** rules, *** ** ** meant ** ***** **** Ares ** ******** ****** management's ********, ***** * think ** *** ****, certainly *** *** *** as **** ** ********** delivers ** *** ****** up ****.

******:********** **** **** **** do $* ******* ** revenue ** ****, ****** **** ** organic ****** *** ******* acquisitions. **** ******* ******** our ******** ** **** pursuing ~$* ******* ****** revenue ** *** **** 5 *****.

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