Re: ADT-Broadview reaction

[tourman <robercampbell@xxxxxxxxx>]

On Jan 29, 8:07=A0am, nick markowitz <nmarkow...@xxxxxxxxx> wrote:
> On Jan 28, 7:13=A0pm, Jim Rojas <jro...@xxxxxxxxxxxx> 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 numbe=
r
> > two Broadview Security for $2 billion.
>
> > Now that the dust has settled and folks have had some time to reflect o=
n
> > the deal, the reaction to last week's announcement seems to be a
> > positive, if not surprised, one. How the two biggest national players i=
n
> > 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 the
> > grand scheme, it's good for the industry.
>
> > "We've seen periods or cycles of consolidation in the industry over the
> > 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 Systems=
,
> > Atlanta. "The result is that the industry has always gotten stronger. S=
o
> > 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 along
> > with it, too.
>
> > "For the rest of the industry, it's good. It's just one less competitor
> > 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, says
> > Lessing Gold, a partner with the legal firm Mitchell Silberberg & Knupp
> > 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....