Simplisafe Acquired At $1 Billion Valuation

By: IPVM Team, Published on Jun 29, 2018

Simplisafe, the competitor alarm monitoring companies historically most love to hate, has been acquired by a mega private equity firm for a $1 billion valuation.

Inside this note, we examine:

  • Why this will make Simplisafe an even tougher competitor to the industry for the next few years.
  • What the enormous effective RMR valuation of Simplisafe was in this deal
  • How Simplisafe's valuation and outlook contrasts to ADT
  • Whether Amazon or Simplisafe is the biggest threat to the alarm monitoring industry

**********, *** ********** ***** monitoring ********* ************ **** love ** ****,*** **** ********** * **** ******* equity **** *** * $1 ******* *********.

****** **** ****, ** examine:

  • *** **** **** **** Simplisafe ** **** ******* competitor ** *** ******** for *** **** *** years.
  • **** *** ******** ********* RMR ********* ** ********** was ** **** ****
  • *** **********'* ********* *** outlook ********* ** ***
  • ******* ****** ** ********** is *** ******* ****** to *** ***** ********** industry

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

Acquirer ********

*** *** ********* ************ & *********** ******** * *********** stake ** **********. *** company *** * **** and *********** ***** ****** of ******* ***-***** ********* like **********, *** **** established * ***** **********, to ***** ************ ** IPOs.

***** *** *****, ******* & ************** *** ***** ** ~$10 *********** *** **** ****** one **** ****, ********* ********** *** ******* ** "expected ** ****** ******* $300 *** *** $* bln *** ****", **** is ** ********* **** Simplisafe **** ** ********.

Expansion *** **** *******

* ***** ***, **************** $** ******* **** Sequoia** ****.

***, ********** *** *********** reloaded **** ******** ** millions **** **** ******* to ************ ****** ** market *********. ******,*** ****'* ******************** ********* ** *** very ***** *********:

** ********* ** **** forces **** *** *** Founder **** ******* ************ *** *******’* ****** and ********* ** *** home ******** ******.

** ******* *** ****** in ******* ********** ***** that.

2 ******* *********?

*** ******* ********** ******, including ** *** ****'* announcement, **** **** ***:

*** ********** **** *** million *********

***** ***** ********, **** likely ****** ******** ** every ***** **** **** Simplisafe. ******** ~* ****** per *****, **** ***** imply ~***,*** *********.

** ********* ***** **** is *********** ** **** percentage ** ***** ***** 'protected' *** ******** ****** the *******'* **** $**.** per ***** *** ********** service, ** ********** ****** both **** *** ******* monitoring.

RMR ******** ~****

*******, ** ******** ** RMR ********* *** *** deal ** ****. ***** we ***** ******* ******* on **** * ******, we *** ************* **** to ****** ********* *** the *********** ********.

***** *** ****'* $* billion *********, ** *** of ~**** ***** ***** $10 ******* ***. ** $15 *** ******** *** monitoring, **** ***** ** ~700,000 *********. *******, **** would ** ** *** same ***** ************ ****** ****** ************ on ********** **** ****.

** *** ********* ** 50 ** ** ** 100 ***** **** ********** but ****** ** *** hundreds ** ******** **** are ***** ** ****** over *** **** *** years ** ** ********* expecting ************ ****** ****** rates **** *** *********** industry, ***** ** ***** to ****.

ADT **********

***'* ****** **************, ** of *****'* ******* ** $6.84 ******* ***, ***** nearly ** **** **** Simplisafe. ********* ** *** one ***** ** **, it ****** ***** **** ADT ** ***** *** bigger **** ********** ** that ********** ** ******* the *** ** ***. Given *******'* ********, ** would ****** ***** ****** valuation *** ********** ** the **** * ***** is $*+ *******.

*** ********* ***** ** favor ** *** ** that ********** ** ***** positioned * *** '******' of *** ****** ***, with *******'* *********, ********** will **** ********* ********** as * **** ** ADT *** ********** ** it ******* ****** ***** by *** **** ******.

Amazon *** ********** ** *** ********

********** *** *** **** hated ******* ** *** intrusion ****** ***** **** year **** ****** **** the *****, **** * combination *********** ****** ********* ******** systems,********* *********** ********* $** *** month ******* **********.

***, ********** *** * real *** / ** contract ********** ** ******. Hellman ******** ******* ** be ********** ***, ** not ** ***** ******'* resources, ** ***** ** provide * ******** ******** of *** *** *** expansion.

********, ** ***** ****** and ********** *** ***** to ** * ***** pain *** *** ********* alarm ******** ** **** leverage ***** ********* ********* and ********** ******** ***** against *** *********** ********.

Test *******

*** ******* ******* ** **********'* most ****** *** * here.

Comments (24)

**** ** *** **** ******* **** **** ****** *** ********* Direct (********) ** ******.

#*, ******. **** ****! * ****** ** ***** *** *** 'synergies' ***** ****?

*** ****’* *** **** *** ******** **** *** **********!

*****://***.*****.***/*******/*********************************************************************?**********=*********&**********=*****&************=*******&***=*********&***=*******

**** *******...

********** ***** **** ** ** ********** ********* * ************.

*** *** ***** *********** **** ****** ***** ***** *** ******** subscribers.

*** *** *******, ****** **** *** ***!

*** *** ******* *******!

** *** ***** ***** * *********** ** ****** *** ****???????????????

***** *** ****** *** *** ****** **** ** ** ***** the *********** **** ******** ********. **** **** *** ** ***** time ******!

********** *****...***** *** *** ***? *** ****** ***!(****** ***)

**** ******!

...**** **** **.

******* ***** ** ************ ********* * ** ***** *****!

*****? * ******* *** *** ********.

***** **** *** ***** ******* **** *******, *** *** **** news ** **** **** ******* ********* * ** ********* ******** Class ** ** ******* ** *** ** ****.

******* *** *** *******.

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

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

SimpliSafe’s ******* ** **** ***** **** ****** *** ****** ** ******* & ********

** ******* ** *** ***********, **** “******* ******” **** “********** funds”.

******* & ******** ***** ******* (***********)

Hellman & ******** ******* **********

**** ******!

** *** *** *** **** ******* *** ****/*******/****** ** *** alarm ******** ********.

****=*** ***********/ *******=********** **********/ ******=********** **********.*** *** ** *** ********** **** ** ******** ************ **** something **** *****.*** **** ********* ** **** ***********, **-****** ****** ********, ** going **** ** ******* **** (*** ** ******* ***** ***** problem). ** **** ** ******** **** *** ****** “******* ***” generation, **-****** ******* ******** ** ******* ** ******** ************. *** present ********** ********** ** ********* *** ****** **** **** ********** DIY, ***, ** ****** ********* ********* *** ********* *******, *** still ** **** ** **-******, **-**** ********,* **** ********* ** ****** *** ******** ****** *** ********.

******: *** *****; ******* ******** *****; ******@***.***

**** ** ***** ** ** *** **-**** ******** (***** ***********, ********* *** **** ***** ******), ***** **** ** ************* for '***-**' ******* ** ********** ** **** *** ****** ****** business ***** ** ******* **** ** ******* (********** *** *** 'what **** ** **, *** ** *** ****' ******* **** people *** ***** **).

** * ***** ***% **** *** ******* ** **** **** - ** **********, ***** *****:

"********,* **** ********* ** ****** *** ******** ****** *** ********."

********:

*. * ****-**** ****** ** ****, **** ******, **** ********* *********** ********** **-**** ******** ** < * ******* ** *** western ****** ** *** **** ** *********, ****** (** * remember *********).

*** ****** ** ****** **** ** - ** *** ********* in **** ******* - ** *** ***** ** *********.... *** if *** **** ***'* ** ****** **** ** ******* ** a ******* ****** (*** ******** ******), **** ********* **** *** for **** *****.

*. ***** ******. **** * *** ** ************ ******* **** numerous ***** ***********, * ******* **** ***** ******** ***** *** far ********* **** ***** ******** ** *** **.

**** *** ******** ******** ******** **** ***** (**-***) ********* **** respond ** ***** ******. ***? ******* *** ****** **** *** respond... *** ****** **** ******* *** ****, ***** ** *** refusal ** ***** ****** ** ******* ****, **** **** **** another ***** ** ********** **************.

**, *****, * ***** **** *** **** '********' ** * core ***** ** **********.

*******: *** ** *** ***** *** **** ***** **** "******: Lee *****; ******* ******** *****; ******@***.***"?

** ******* **** *** ****** ******* **** **** ** ** the ****** ** *** **** ******** ** ****.

****** *** ********** **** ** *** ******** **** ******* ** private ********, ********** ******* *** **. ***, ***** *** ******** business ****** *** ******* ******** ** *** ** **** ************ when * ********* **** **-******** ********, ** **-******* ********, ** just ****** ***** **** ********** *****. **** ***** **** *** high *** **** ***** ******* ** *** **** ****, ** low *** **** *****-**. ** ******** * **** ********** **** type **********, ******* **** ***** **** ***** *******, *** **** services.

*** *****, *** ** * ”******” ** *****? *** ***** to ** ** ******* **** *** ***** ***/***** *** **-***********. Plus, *** ******* *** ** **** * ****** ***** **** the ******.

****, *** ******* *** ** **** * ****** ***** **** the ******.

*** **** **** ** ***** * ****** ** *** ****** is *** ***, ********* ** ** ********** ******* *** ****** named ** *** ******* ** *** ******, *.*., ***** ** no **** ** ******* ****** *** ****** ** **** *******, since ** **** ** ***** *********** ***** ** ** *******.

* ****-**** ****** ** ****, **** ******...

*** ******** ** *** *********** ******** *********?

* ***** **... *** *'* ****** **** **** ******* ** this **** ** *** ****** ***** *******:

* **** ** ****** *** ******* ***** ** **** ****** me ** *** ***** ******* ** ** * ****’* **** box.

******** *** *** ******** ******** ** ****, * *** ;)

**** ****, * ***'* **** *** ***** **** ** **** but **** ** * ********* ******* **:

********* ** *** ******* ** **** ****, **** ****** ***** like * ***** ********** ******, ***** ** *** ********** **** a *** ********** ******. ** *** ****** ****** *** *** gen ****** ** ****** *** *** *****. ****'* ******** *** it's ****-***.

*****, ** * ***** ***** ********* ****** [******* *** ********** which ** *** * *** **], * ***** ********** ** a **** ****** ****** **** ******** *** ****** - *** for ****** *** ***** *** *** *** *******. **** *** can *** ********** *** $**/***** ** ********** **** ****-***** *** for $**/*****.

* *** **** *** ***** ** * *** ********** - don't **** ***** ************* ******* **** * & *.

******* **** *** ** * ***** ***? ** **** *** already **** ****?

***** ***:*****://***.***********.***/*****-**-*****-**-******-**-***********-**-**********/

#*, **** ** **** ****** ********* ******** ****?

* *** *******, *.*., ********** *** *** ***** *** **** time ** *** ********* ******** ** ****** ********* *****/***** ** clearly ********.

*'** *** ****** ******* ** *** *********** *** **** ** them *** ******* ** *** ****** ********** **** -********** '*** ***' ********** * ******

*****://**********.***/*******

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

********** ** *** ** * ********** **********.

* ** *** *** * **** ****, ***** ** *** data ** * **** *******.

*** ***** *** ****'* ***** **,****** ** *** ******* ** **** / ***********.

********** **** *** ******* *-**** *** ***** **** ********** ********, so *** '***** *****' *** '****** **********' **** *** ******** for ****, *** *** ********** *** ******* * ****** *** interface *** * ****** ** *****.

*'* *** **** '*****'* ******* ********' *** ****** ** ******-********. ASAPer **** ****-********** *** *** *** ** * ***** **** (so **** ***********).

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