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Posted by tourman on January 29, 2010, 4:28 pm
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> tourman wrote:
>
> >>> Industry Reaction Rolls in on ADT/Broadview Deal
>
> >>> By Kevin Campbell at SDM Magazine
>
> >>> It's not that often, especially given the current economic climate,
> >>> that two major national players in an industry get together through
> >>> acquisition. Yet, as it was widely reported last week, that's exactly
> >>> what happened in the security industry as number one ADT acquired num=
ber
> >>> two Broadview Security for $2 billion.
>
> >>> Now that the dust has settled and folks have had some time to reflect=
on
> >>> the deal, the reaction to last week's announcement seems to be a
> >>> positive, if not surprised, one. How the two biggest national players=
in
> >>> the industry kept their big deal a big secret we may never know. But
> >>> what some of the experts SDM has spoken with have said is that, in th=
e
> >>> grand scheme, it's good for the industry.
>
> >>> "We've seen periods or cycles of consolidation in the industry over t=
he
> >>> years, and both then and now I think what it really does is reinforce
> >>> the value of RMR with the investment community that watches our space=
,"
> >>> says Jim Callahan, chief operating officer of Ackerman Security Syste=
ms,
> >>> Atlanta. "The result is that the industry has always gotten stronger.=
So
> >>> we certainly see nothing negative; only positives coming from it."
>
> >>> Others view the deal from a competitive standpoint. Fewer competitors
> >>> can mean more business for other dealers. But other benefits come alo=
ng
> >>> with it, too.
>
> >>> "For the rest of the industry, it's good. It's just one less competit=
or
> >>> out there, and a big one," says Bob Bonifas, CEO and chairman of the
> >>> board of Aurora, Ill.-based Alarm Detection Systems Inc. A big one,
> >>> indeed. And that may become a factor for many security customers, say=
s
> >>> Lessing Gold, a partner with the legal firm Mitchell Silberberg& =A0K=
nupp
> >>> LLP and SDM's legal columnist.
>
> >> I come now not to praise Broadview but to bury it.
> >> who did not see this coming. thats the name of the game now get so big
> >> then sell to tyco.
>
> > RHC: It will be interesting to see if they decide to keep the Brinks /
> > Broadview name in place, since this acquisition is only being done by
> > the executive to improve Tyco's balance sheet. Either way, it's not
> > likely to affect service quality to the customer in any positive way
> > for either company, so I think the market will remain pretty much as
> > is. Usually consolidation comes with confusion on the part of the
> > buying company acquiring the other company, as they struggle to mesh
> > the two operations. That only bodes well for the 85% balance of the
> > market held by independant companies, as ADT Brinks attrition rates
> > continue unabated, leaving us even more opportunities for
> > takeovers...
>
> > Such is life in the world of big business....
>
> ADT is like a vulture...they will pick it clean and leave no trace. The
> Broadview crews are all in serious danger of unemployment. ADT does not
> like trained monkeys that can only work on a handful of proprietary
> panels. All those BHS panels will be sold as scrap, or fill up many
> local landfills. I guarantee you none of the BHS panels will be on ADT's
> approved list of acceptable panels.
>
> Jim Rojas
RHC: You're probably right about ADT picking the bones clean. They did
that with their SecurityLink purchase as well.
In the end, it's always the bottom line that counts more than the
customer. When will they ever learn......(hope they never do....good
for us....:))
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