ADT Commercial is expanding its presence in Atlanta with the purchase of Critical Systems. Headquartered in Marietta, Georgia and established in 2002, Critical Systems specializes in enterprise-class fire alarm, fire suppression, life safety and integrated building security solutions for high-rise properties, healthcare campuses and mission-critical data, manufacturing and distribution facilities in Atlanta and its suburbs. “Critical Systems brings the power of nearly two decades of experience integrating sophisticated fire, life safety and security systems to help protect some of Atlanta’s most high-risk commercial facilities and will be instrumental in helping drive our commercial growth platform across the Southeast,” said Executive Vice President, ADT Commercial, Dan Bresingham. Emergency communications systems “The addition of Critical Systems to our team deepens the range of services we can offer customers in Atlanta and the region whether providing fail-safe emergency communications systems in high-rise buildings or special hazard fire suppression at data centers, Critical Systems has the distinctive and specialized skills and service mindset to deliver peace of mind to commercial customers,” said Senior Vice President Field Operations, ADT Commercial, Michael McWilliams. President of Critical Systems Bill Van Loan is enthusiastic about the additional resources and reach that aligning with ADT Commercial can provide to customers. “Combining the professionalism and know-how of our well-trained technicians with the backing of ADT Commercial reinforces our commitment to customers especially for large, complex systems or multi-site projects,” said Van Loan.
ADT Commercial has grown organically in double digits since 2016, in addition to growing through 15 acquisitions completed since the merger of ADT and Protection One. Acquisition of integrator companies such as Red Hawk Fire and Security and Aronson Security Group has expanded ADT Commercial’s presence geographically to more areas of the country. Most of the employees of the acquired companies have stayed with ADT and “helped to create a corporate culture and a good place for employees to work,” says Dan Bresingham, Executive Vice President of ADT Commercial. Happy employees ensure good customer service. Enterprise resource planning Bresingham will lead ADT Commercial as it becomes a separate business unit in 2020 “We adapt to where our clients want us to be,” adds Joe Sanchez, Senior Vice President of Customer Operations of ADT Commercial National Accounts. “We take a strategic approach as we determine how adaptive our customers are going to be to the new technology.” I caught up with ADT Commercial at the GSX trade show in Chicago. Bresingham tells me ADT Commercial has benefitted from the caliber and breadth of leadership talent that have come along with the various acquisitions, including Mike McWilliams of Red Hawk, Bob Dale of Protection One, and Phil Aronson of Aronson Security. The transitioning of internal systems such as enterprise resource planning (ERP), billing and customer repair software will further steamline the ADT Commercial operation in the next several months. Bresingham will lead ADT Commercial as it becomes a separate business unit in 2020. We caught up with ADT at the GSX trade show in Chicago Providing new opportunities for regional integrators Additional acquisitions are also likely; in fact, growth is likely to accelerate. ADT Commercial offers a national footprint that can provide new opportunities for regional integrators it brings into the fold. New acquisitions will continue to fill out ADT’s skillset requirements in specific geographic areas where more expertise is needed. Security directors have a small staff and we help them know what they should be looking at in terms of data"“The industry doesn’t change a lot,” says Bresingham. “The technology just gets better, faster, and cheaper. As a service provider we take the best technology and combine it to provide the best solutions. We’re product-agnostic. Most of our jobs are down-and-dirty, doing the same things, but we’re pushing ourselves to be the best every day at the basics.” An emphasis at ADT is to provide customers ‘actionable’ data compiled from their various security systems. “We have a range of customers,” says Sanchez. Managing networks and video remotely “From small businesses to large data centers, there is no electronic system we cannot do. We are adaptable, from providing basic intrusion all the way to more sophisticated elements. Security directors have a small staff and we help them know what they should be looking at in terms of data.” “Our customers are our ‘true north’,” says Sanchez. A strong relationship with clients forms the basis for ADT Commercial’s success. Helping customers track data utilizes ADT Commercial’s eSuite account management system, homegrown software that compiles and analyses various customer data inputs. It also allows the ability to manage networks and video remotely. “We built it from scratch for customers. It’s a web-based system that helps them manage their business,” says Bresingham. “We hold ourselves accountable. We don’t hide from data, we encourage it.” Monitoring refrigeration units The solution is different in every case, just as every customer is uniqueIn addition to data from customer systems, eSuite can compile local weather information, crime statistics and other information that can help provide trending information to guide a customer’s business. The system’s flexibility enables ADT to provide the data each customer needs. ADT helps customers manage their business beyond the security department, too. “We do a lot of things in environmental control, monitoring refrigeration units and making sure humidity and temperature readings are correct,” says Sanchez. Leaving a door open could cause product loss at a pharmaceutical company, for example. In the food industry, a freezer malfunction could cause huge losses. In either case, an alarm can draw attention to the problem in a timely manner. Other customers face regulatory requirements that demand an audit trail of compliance, which ADT’s systems can provide. At the end of the day, ADT asks customers ‘What’s your security need?’ The company then adapts and assembles its solutions using internal resources and outside vendors, to meet that need. The solution is different in every case, just as every customer is unique.
ADT continues expanding capabilities and geographic reach via Red Hawk Fire & Security, ADT Commercial with the asset purchase agreement of Security Corporation, a commercial security integrator headquartered in Detroit, Mich., with offices in Novi (Detroit), Mich., and Columbus, Ohio. Family owned and operated since 1974, Security Corporation has earned customer loyalty by providing responsive customer service and innovative security products to businesses, financial institutions, academic centers and government offices in the Midwest region. Growing commercial business “This strategic acquisition is the latest in a series of efforts to continue driving our commercial business to the next level giving us an opportunity to reach our customers with unmatched service in every fire, life safety and security discipline across the United States,” said Executive Vice President, ADT Commercial Dan Bresingham. “Security Corporation has built long-lasting client relationships because of their focus on putting the customer first. Bringing the team of well-trained professionals on board helps Red Hawk and ADT Commercial further strengthen our rapidly growing presence and technical capabilities in the Midwest region while also adding to our customer-centric culture,” said Senior Vice President Red Hawk Fire & Security, ADT Commercial Michael McWilliams. Technical and financial resources “Joining these industry leaders is a fitting next step in the evolution of a company that has taken pride in providing the very best of the best for our customers. Teaming up with Red Hawk and ADT Commercial will provide deeper technical and financial resources to further serve our clients here in the Midwest,” said Security Corporation President Robert Holloway II.
ADT Inc., a provider of monitored security and interactive home and business automation solutions in the United States and Canada, announced the acquisition of Advanced Cabling Systems, one of the leading technology integration companies in the mid-south. Advanced Cabling Systems will join forces with Red Hawk Fire & Security. Headquartered in North Little Rock, Arkansas, and founded in 1997, Advanced has regional offices in Lowell, Arkansas, Tulsa and Oklahoma City, Oklahoma and Ozark, Missouri specializing in the installation and service of integrated systems including structured cabling, fire alarm systems, audio/video, CCTV, access control, intrusion detection, intercom/paging systems, nurse call and infant protection systems. Delivering Superior Customer Service Advanced Cabling Systems offers a full range of integrated systems and has earned exceptional customer loyalty as a fire and security integrator“The addition of Advanced is part of our focus on commercial growth and underscores both ADT’s and Red Hawk’s focus on leveraging technology to deliver superior customer service and support to commercial and enterprise-level organizations, particularly those with multiple U.S. locations,” said Dan Bresingham, ADT Commercial Executive Vice President. Starting as a structured cabling company and evolving with technology, Advanced Cabling Systems now offers a full range of integrated systems and has earned exceptional customer loyalty as a fire and security integrator. Increasing Red Hawk’s Geographic Footprint “The move is a positive proof that aligning with ADT elevates Red Hawk’s ability to showcase its products and services to a wider range of clients while increasing our overall geographic footprint and dedicated technician workforce, which is to be the premier single point of contact for all our customers’ fire, life safety and security needs,” said Michael McWilliams, Senior Vice President, Red Hawk Fire & Security, ADT Commercial. “At Advanced, our focus on technology and customer service is why we know that aligning with the most recognizable brands in the fire and security industry will allow us to better serve existing and new commercial customers,” said Michael Kennedy, President of Advanced Cabling Systems.
ADT Inc., the provider of monitored security and interactive home and business automation solutions in the United States and Canada, announced it has entered into a definitive agreement to acquire Boca Raton, FL-based Red Hawk Fire & Security, a leader in commercial fire, life safety and security services and portfolio company of Comvest Partners, for $317.5 million in cash. This transaction accelerates ADT’s growth in the commercial security market and expands the company’s product portfolio with the introduction of commercial fire safety related solutions. It is the latest in a series of strategic acquisitions made over the last year to drive commercial growth and build on ADT’s strong foundation of superior customer service. With the addition of Red Hawk, ADT will have an increased geographic footprint and enhanced customer service capabilities across the nation. Revenues from the combined company’s business customers are expected to represent approximately 25% of total revenue. Red Hawk is a pioneer in the design, installation, integration, monitoring and servicing of commercial fire, security and life safety solutionsOffers Mission-Critical Solutions Red Hawk is a pioneer in the design, installation, integration, monitoring and servicing of commercial fire, security and life safety solutions. Red Hawk represents one of the few last independent large national commercial integrators, offering complex, mission-critical solutions across its 45 district locations and is expected to generate approximately $300 million of revenues in 2018. In recent years, Red Hawk has demonstrated double-digit revenue growth across a diverse set of customers, markets and geographies, leveraging its strong local presence backed by its nationwide footprint and differentiated fire and security expertise. Expanding Business And Service Capabilities “Commercial security is one of the core pillars of ADT’s growth strategy and today’s announcement marks a significant step in our concerted efforts to expand our commercial business with the critical capabilities and services that our customers expect,” said ADT President and incoming CEO, Jim DeVries. We are excited to welcome the talented and experienced Red Hawk team to the ADT family while expanding our geographic reach"“Red Hawk’s exceptional portfolio of commercial fire and security solutions complements ADT’s existing commercial business, positioning us to provide a superior customer experience at a local and national level. We are excited to welcome the talented and experienced Red Hawk team to the ADT family while expanding our geographic reach, service capabilities and product offerings. Having long admired Red Hawk, we are confident that combining the strengths of our two companies will allow us to deliver increased value to our customers and shareholders.” Providing High-Quality Customer Service “We are delighted to join a company with ADT’s resources, growth potential and shared commitment to providing high quality customer service and innovative solutions to customers,” said Red Hawk President and CEO Michael McWilliams. “We look forward to our future with ADT, which we are confident will help us to achieve our next phase of growth.” “It was a rewarding and collaborative experience working with Michael McWilliams, Mark Foley, Red Hawk’s CFO, and the other members of Red Hawk’s senior management team to build Red Hawk into a market leader from our original acquisition, and Red Hawk is positioned to continue to thrive under ADT’s leadership,” said Roger Marrero, the Managing Partner of Comvest Partners. Strategic And Financial Benefits Of Transaction Substantial increase in scale to accelerate ADT’s commercial growth: The combined commercial business will have substantially increased scale with an expanded commercial technician work force that will allow the company to meet growing customer demand across the U.S. and provide enhanced customer service capabilities. This transaction creates the opportunity to leverage the capabilities of both organizations to create a more robust and differentiated commercial security offering in a highly fragmented industry. Introduction of fire safety solutions: This transaction expands ADT’s product portfolio with the introduction of Red Hawk’s fire safety solutions, allowing the company to become a single destination for both fire and security needs at the commercial level. The company intends to leverage Red Hawk’s fire safety solutions and expertise to help capture new business opportunities with new and existing customers. Compelling long-term financial benefits: Given the strong financial and operating profile of Red Hawk’s business – which, similar to ADT’s growing commercial and multi-site businesses, has a very attractive net customer acquisition cost and retention characteristics – the acquisition is expected to be accretive to free cash flow generation, before taking into account meaningful expected cost benefits. The completion of the transaction is subject to customary closing conditions, including regulatory approvals. The transaction is expected to close by the end of the fourth quarter 2018.
The purchase strengthens the company’s existing fire and security services operations in New Jersey, Philadelphia and Delaware Red Hawk Fire & Security LLC, a leader in fire, life safety and electronic security services recently announced its first acquisition since becoming an independent company with the purchase of Systems Sales Corporation. The purchase strengthens the company’s existing fire and security services operations in New Jersey, Philadelphia and Delaware. Red Hawk Fire And Security Services To Get A Boost Red Hawk was formed as an independent, unified fire and electronic security services brand with a national footprint to serve commercial customers after the acquisition by a Comvest Partners sponsored private investment fund of the U.S. fire and security operations of United Technologies Corporation (UTC) in April of 2012. Since then, Red Hawk has focused efforts on successfully growing its commercial client base in the government, healthcare and education markets. Serving customers in the New Jersey and Philadelphia metropolitan area since 1981, Systems Sales Corporation has built a solid reputation providing and servicing critical life safety systems including fire alarm, security, nurse call and communications systems. “This is a great fit for Red Hawk as we bring on a company that expands and complements the strong teams we already have in place in the region. The combined expertise, local insights and excellent customer relationships Systems Sales brings to the table will reinforce our capabilities in this important area of the country,” said Red Hawk CEO and President Michael McWilliams. Systems Sales Corporation President, John Ventrella, views the acquisition as a win–win for all parties involved especially current employees and customers of both Red Hawk and System Sales. “This will open the way for us to increase in scale by leveraging Red Hawk’s resources and reach as the highly trained and experienced Systems Sales employees work in tandem with Red Hawk teams to continue developing innovative solutions to best serve our combined portfolio of clients,” said Ventrella. Systems Sales Corporation offers a wide range of products and services and has been recognized numerous times with the Edwards System Technology Distributor of the Year Award. “We look forward to blending the strengths of both organizations as we complete this very positive step to build upon our growth and further strengthen our position as the preferred service provider in the fire, life safety, security and banking industry,” McWilliams added. Terms of the transaction have not been disclosed.