Simplisafe Acquired At $1 Billion Valuation

Author: 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

**********, *** ********** ***** ********** ********* ************ **** **** ** hate,*** **** ********** * **** ******* ****** **** *** * $* ******* valuation.

****** **** ****, ** *******:

  • *** **** **** **** ********** ** **** ******* ********** ** the ******** *** *** **** *** *****.
  • **** *** ******** ********* *** ********* ** ********** *** ** this ****
  • *** **********'* ********* *** ******* ********* ** ***
  • ******* ****** ** ********** ** *** ******* ****** ** *** alarm ********** ********

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

Acquirer ********

*** *** ********* ************ & *********** ******** * *********** ***** ** **********. *** ******* *** a **** *** *********** ***** ****** ** ******* ***-***** ********* like **********, *** **** *********** * ***** **********, ** ***** acquisitions ** ****.

***** *** *****, ******* & ************** *** ***** ** ~$** *********** *** **** ****** *** **** ****, ********* ********** *** ******* ** "******** ** ****** ******* $*** *** and $* *** *** ****", **** ** ** ********* **** Simplisafe **** ** ********.

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

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

***, ********** *** *********** ******** **** ******** ** ******** **** from ******* ** ************ ****** ** ****** *********. ******,*** ****'* ******************** ********* ** *** **** ***** *********:

** ********* ** **** ****** **** *** *** ******* **** Laurans ************ *** *******’* ****** *** ********* ** *** **** ******** market.

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

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

*** ******* ********** ******, ********* ** *** ****'* ************, **** they ***:

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

***** ***** ********, **** ****** ****** ******** ** ***** ***** that **** **********. ******** ~* ****** *** *****, **** ***** imply ~***,*** *********.

** ********* ***** **** ** *********** ** **** ********** ** those ***** '*********' *** ******** ****** *** *******'* **** $**.** per ***** *** ********** *******, ** ********** ****** **** **** and ******* **********.

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

*******, ** ******** ** *** ********* *** *** **** ** 100x. ***** ** ***** ******* ******* ** **** * ******, we *** ************* **** ** ****** ********* *** *** *********** industry.

***** *** ****'* $* ******* *********, ** *** ** ~**** would ***** $** ******* ***. ** $** *** ******** *** monitoring, **** ***** ** ~***,*** *********. *******, **** ***** ** in *** **** ***** ************ ****** ****** ************ ** ********** **** ****.

** *** ********* ** ** ** ** ** *** ***** seem ********** *** ****** ** *** ******** ** ******** **** are ***** ** ****** **** *** **** *** ***** ** is ********* ********* ************ ****** ****** ***** **** *** *********** industry, ***** ** ***** ** ****.

ADT **********

***'* ****** **************, ** ** *****'* ******* ** $*.** ******* USD, ***** ****** ** **** **** **********. ********* ** *** one ***** ** **, ** ****** ***** **** *** ** still *** ****** **** ********** ** **** ********** ** ******* the *** ** ***. ***** *******'* ********, ** ***** ****** their ****** ********* *** ********** ** *** **** * ***** is $*+ *******.

*** ********* ***** ** ***** ** *** ** **** ********** is ***** ********** * *** '******' ** *** ****** ***, with *******'* *********, ********** **** **** ********* ********** ** * pain ** *** *** ********** ** ** ******* ****** ***** by *** **** ******.

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

********** *** *** **** ***** ******* ** *** ********* ****** until **** **** **** ****** **** *** *****, **** * combination *********** ****** ********* ******** *******,********* *********** ********* $** *** ***** ******* **********.

***, ********** *** * **** *** / ** ******** ********** in ******. ******* ******** ******* ** ** ********** ***, ** not ** ***** ******'* *********, ** ***** ** ******* * sizeable ******** ** *** *** *** *********.

********, ** ***** ****** *** ********** *** ***** ** ** a ***** **** *** *** ********* ***** ******** ** **** leverage ***** ********* ********* *** ********** ******** ***** ******* *** traditional ********.

Test *******

*** ******* ******* ** **********'* **** ****** *** * ****.

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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