Re: ADT-Broadview reaction

[mleuck <m.leuck@xxxxxxxxx>]

On Jan 29, 7:26=A0am, tourman <robercampb...@xxxxxxxxx> wrote:
> 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 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 & Knu=
pp
> > > 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....

They can't keep the Brinks name which was why they renamed to
Broadview. It will be a gradual consolidation with the installation
and service arms staying exactly like they are now and ADT slowly
absorbing the administrative side.