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Jamie Haenggi

Protection 1 buys Cam Connections

Cam Connections has loss prevention expertise, many ‘leading business customers’
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06/02/2015

LAKELAND, Fla.—Protection 1 announced today that it is buying Cam Connections, (CCI) a full-service integrator based here. The acquisition comes in the midst of Protection 1 being acquired by Apollo Global Management, but it’s still closing deals on its own.

Apollo lands Protection 1, ASG

Whall: Combined company will be ‘a force in the marketplace’
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06/01/2015

NEW YORK—Apollo Global Management is about to take one giant leap into security with its May 19 agreement to acquire Protection 1 and ASG Security.

Apollo lands Protection 1, ASG

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Wednesday, May 20, 2015

Apollo Global Management is about to take one giant leap into security with its May 19 agreement to acquire Protection 1 and ASG Security.

Under the agreement, the combined companies will operate under the Protection 1 brand, with Protection 1 CEO Tim Whall at the helm.

Security Systems News reported on the proposed deal last week. Here's that story.

I had a chance to interview Protection 1 CEO Tim Whall, CMO Jamie Haenggi and ASG's CEO Joe Nuccio last night. I was looking for details about how the new management might be structured, but that will have to wait until the deal is closed. The earliest possible closing date would be July, Whall said.

The May 19 announcement did not include proposed terms of the agreement, though $2 billion has been reported by Rueters.

Whall said that the “combination of Protection 1 and ASG instantly gives both companies a wider footprint where they each did not have one and a greater density in the markets where we overlap. There is a definite benefit for the customers as well as the employees. And given our like-minded approach to the operations, the combination will be a force in the marketplace."

Haenggi added that “the combination of the two companies creates a $40 million recurring revenue and over $600 million entity, with more organic growth and acquisitions on the horizon. It has never been Protection 1’s or ASG’s goal to be the biggest—it has always been both companies aim to be the best both for our customers and our employees.”

Whall, Haenggi and Nuccio all spoke about the benefits of having a private equity group the size of Apollo (this group manages $163 billion) involved in the security industry. When Apollo gets involved, other funds take notice, Whall said.

That means more resources for Protection 1 and potentially for other security industry companies.

I spoke with Michael Barnes, a partner in the consulting and advisory firm Barnes Associates, who is advising Apollo. I asked him about the people at Apollo who are behind the deal. Barnes said while Apollo is a huge fund with many employees, "the team that has been focused on the security alarm industry and driving these deals is relatively small. They are very smart and they cycle through tough decisions quickly. They should make a great partner for P1 and ASG."

How might the group from Apollo work with managment? Barnes said, "From what we can tell, their philosophy seems to be to pick the best horse and jockey and then let them run. To extend the analogy, I am sure they will influence things like what races they enter, but as long as they are winning they will likely just focus on making sure they have the needed resources and otherwise stay out of their way."

I posed the same question to the folks at Apollo in a couple of calls last night, but they declined comment.

Whall, Haenggi and Nuccio also spoke about how the new Protection 1—with the staff, expertise and client base and geographic coverage that ASG brings—will be uniquely positioned in the industry.

Haenggi said that Apollo has been studying the industry for some time. They liked that Protection 1 has "not only has the national footprint, but also the breadth of services and markets serving residential, commercial and national accounts," she said.  "Back in the day, there was ADT that had the size and breadth. Today, there is no one serving across all of these segments with the size of Protection 1. We are in a position to take that lead but do it with a decidedly ‘Protection 1 approach’ to business."

Barnes concurred with Haenggi, saying P1, especially with ASG added, is the largest industry player with "a business model on which most of the industry was built. That is, having a large commitment to specific geographic markets and a broad range of product and services aimed at virtually the entire spectrum of customer types—everything from low-cost, entry-level residential systems, including a DIY offering, all the way up to large-scale systems for the commercial and institutional segments.

Both companies also know how to acquire and consolidate smaller companies, Barnes noted. "This robust approach is in contrast to virtually all of the other large, national players, who are more narrowly focused, such as Tyco, Stanley and Diebold on commercial markets, and ADT, Vivint, and Monitronics primarily on the residential market."

What does Tim Whall say about Protection 1's expansion plans? Will it expand beyond the U.S. market? “I think it's safe to say that Protection 1 will hold not just a U.S. footprint, but a North American footprint," he said.

Asked about possible aspirations for a global presence, Whall laughed and said: “Well, before we talk international, let’s get this deal signed first and over the line—we’ll see how international we get, but I certainly would not rule out lots of growth from Protection 1 over the next several years.”

Private equity is no stranger to security, especially in the past two years. Recent deals include: Vivint to Blackstone, SAFE to ICV Partners, ACA to Norwest Capital, and most recently, Ackerman to Imperial Capital, Barnes noted. However, this deal stands out, he said.  "I can’t remember an investor like Apollo making a first step into the industry, on this scale, doing two transactions at the same time, and particularly with such a good fit between the two."

To attract private equity investors, Barnes said you "have to have all of the requisite pieces of the puzzle…size, capability, management, and growth. In addition, you generally have to have a strong overall industry opportunity, since one is effectively competing against all other possible investment opportunities." 

The long list of dealmakers involved in this transaction include: Financing is provided by Credit Suisse, Barclays, Deutsche Bank, Jefferies and RBC. Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal adviser to Apollo; Latham & Watkins LLP is acting as legal adviser to Protection 1; and Kirkland & Ellis LLP is acting as legal adviser to ASG Security. Morgan Stanley and Raymond James are acting as financial advisors to Protection 1 and Goldman Sachs is acting as financial advisor to ASG Security. Barnes Associates is advising Apollo.

Protection 1 hires new VP of residential field sales

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05/07/2015

CHICAGO—Protection 1 has hired Michael S. Fredricks to serve as vice president, residential field sales.

ASIS 2012, Pro 1 buys again, mobility and the financial vertical

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Wednesday, September 12, 2012

It’s been a busy two days for Amy Canfield (the new lead editor for our sister publication Security Director News) and I here in Philly at the ASIS show.

Since Sept. 10, the first day of ASIS, was Amy’s fifth day on the job, she accompanied me to most of my appointments that day. She did have a chance to speak to a group of end users at the Honeywell booth. Here’s her update on that  and she was flying solo on Day 2--check out her blog  for highlights of her day, including a tour of the security operation of the Philadelphia Convention Center with integrator Schneider Electric.

Here are some highlights from my conversations on the show floor on Day 1 and Day 2. Check back tomorrow for Day 3.

DIEBOLD
At the Diebold booth I met with Tony Byerly, who’d just completed his first 90 days as head of security at Diebold, along with Diebold IT chief Jeremy Brecher and Felix Gonzalez, who earlier this summer left Stanley to join Byerly’s senior staff as the newly appointed VP for strategic initiatives and business development in electronic.security.

Diebold was the first of several integrators I spoke to who said that one focus for them will be the financial services vertical. It’s not a surprise for Diebold, who's parent company is the largest ATM provider.

Byerly touted Diebold’s long history, the company’s reputation for steady, high quality service and technology know-how as advantages in the marketplace. He also noted the shifting competitive landscape and said Diebold stands out for a variety of reasons including the fact that “we’re a strategic in the space—we’re not backed by private equity.” He called Diebold the “nation’s only pure-play integrator,” pointing out that “we don’t have an adjacent manufacturing arm.”

Brecher talked about being “in the value position” with service and technology. “We invest time and resources to create solutions instead of packaging solutions,” he said. Diebold works to leverage a customer’s existing infrastructure, and customers have a “single method to connect to Diebold … a single customer portal … the entire web experience is easy to manage.”  
 
PROTECTION 1
Protection 1 had some big news. Click here to see the story about a big acquisition Pro 1 made. It’s a systems integrator with staff that's experienced and certified to work on networks. With the new staff/capabilities, Jamie Haenggi told me, Pro 1 will be taking on jobs it would have walked away from in the past.

STANLEY CSS
Stanley announced that John Nemerofsky is the new VP of Global Solutions, and that there's a new phalanx of vertical market leaders. There’s other news as well. Stanley is bringing together three business units: the CSS team, the Mechanical Solutions team, and the Security and Automatic Door team.

The teams would work together in the past, but it “would happen more through accident,” Nemerovsky told me. Now, there’s a “process where we’ll work together to pull together the best possible solution for the client.”

And there are specific solutions for each vertical market. This infrastructure will be appreciated by global accounts customers who “are looking for consistency in deliverables … the same deliverables, billing, systems they have in Chile [for example], that they have in New York City, Barcelona, Tokyo and Paris.”

Here’s the list of vertical market leaders: Paul Retzbach – Commercial Leader, Government; Chris Hobbs– Commercial Leader, Retail; Tom Benson – Commercial Leader, Banking; Paul Baratta–Commercial Leader, Healthcare; Rebecca Durham–Commercial Leader, K-12 Education; Eric Rittenhouse–Commercial Leader, Higher Education; Jerry Walker–Global Strategic Account and SSS Solutions; Eddie Meltzer–Global Strategic Accounts and SSS Solutions; Bob Stockwell–Technology Leader; Lance Holloway–Technology Leader; Beth Tarnoff–Marketing Leader; Ryan Fritts–Vertical eServices Leader

Look for more on this story next week.

TYCO
I also spoke with Renae Leary, senior director of global accounts for Tyco. Click here to read that story.

JOHNSON CONTROLS
I spoke to Tammee Thompson at Johnson Controls, who told me that ASIS is the show where she and others "take a break from making the quarter" (but only briefly she emphasized) to check out technology. She had an army of employees out scouring the floor “looking for the latest and greatest to pull into our technology stack.” Specifically, JCI is looking for access control solutions, VMS, PSIM and ID management solutions.

RED HAWK
I also had a chance to chat with Mike Snyder of Red Hawk. He said that the company is finishing up “moving the infrastructure [network and IT systems] out of UTC,” and officially began its rebranding as Red Hawk in the past couple of weeks.

Snyder also talked about focusing on the financial vertical market, saying that the next wave of retail banking will not be branch operations, but ATMs. He believes Red Hawk will have a leg up on the competition because his staff has deep experience in the financial sector, some originally coming from Mosler. The company also has a partnership with ATM provider NCR.

AXIS COMMUNICATIONS
At this show, Axis Communications was showing many new products and solutions, many targeted toward the fewer-than-16 channel market. (Look for a story next week about a visit I made to Axis H.Q in Massachusetts a couple of weeks ago.) When I asked Fredrik Nilsson about all the talk I was hearing about the financial vertical, he noted that Axis had an ATM with four cameras in its booth. Nilsson said that banking is a conservative vertical that is finally making the leap from analog to IP. “Education was the first, then retail, and now it’s banking’s turn.”

He agreed with Snyder’s point that the new wave of retail banking is moving from the branch to ATMs. "When was the last time you went into a bank branch?," he asked. "I refinanced my house online."

Coincidentally, Axis is also in the process of hiring a business development specialist for the financial vertical, he said.

AVIGILON
At the Avigilon press conference, the company introduced the new version of its software. Keith Maret said Avigilon took inspiration from Google, Apple and Facebook in the development of this software. The cool thing is that the software can respond to voice commands and body movements. COO Andrew Martz demoed this capability and it was like watching a command center staffer play squash on a Nintendo Wii. The command center screens zoomed and focused in response to voice commands and hand gestures. This feature is in the alpha phase. “We’re gauging the interest in it,” he said.

Maret summarized the features thus: crash-proof enterprise server management, where all servers are grouped together; a “collaborative mode” where more than one person can log into video feed and manipulate the video in real time; and intelligent virtual matrix that “allows you to turn video walls to life.”

HONEYWELL

At Honeywell, in addition to talking to the end user committee, I spoke with Scott Harkins about Honeywell’s emphasis on the “connected business," where the access, video and intrusion systems are tied into other systems such as: HR systems, radars [in super high-end port applications] POS for example. The emphasis of course, as we heard from nearly every manufacturer at the show, is on mobility. Honeywell’s newest ProWatch 4.0 access control has a new mobile offering that enables remote access from iPads,  phones and other devices. It’s also integrated with wireless locks, something Harkins is very excited about, because it’s so much cheaper to install, maintain and manage.

FOOTBALL

The traffic on Day 1 was the lightest I’ve seen in a while at an ASIS show. It picked up considerably on Day 2, but it was still moderate traffic to my eye.

Why? Well, there’s the economy of course. Things may be looking up, but one manufacturer told me that people who’ve got money in the bank are keeping it there. They’re still cutting corners on travel—making this a one- or two-day show, rather than three.

I also heard that having the show in Philly meant that tri-staters could take the train in for Day 2 and 3.

And, I understand there may have been some football-related reasons that folks weren’t here on Monday.

Football.

I can think of about 80 things I’d rather do [including laundry] than watch football on a gorgeous fall day, but if football will help roll back the expectation that people should travel to work events on Sundays, count me in.

Go Pats. Woo.
 

Protection 1 acquires IT-centric Integration Logistics

Pro 1 launches Integrated Systems Division
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09/11/2012

PHILADELPHIA—Protection 1 has added “deep IT and integrated systems knowledge” with the acquisition of Integration Logistics, a systems integrator based in Newark, Del., Jamie Haenggi, Protection 1 CMO, told Security Systems News.

Pro 1: ‘We’re excited to be part of the home automation space’

Company’s new P1 Life solution integrates security and home automation
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08/29/2012

ROMEOVILLE, Ill.—Protection 1 announced this week that it has launched a new integrated home security/home automation service called P1 Life.

Protection 1 acquires two commercially focused companies

'Siteview' App newest offering for national accounts customers
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08/22/2012

ROMEOVILLE, Ill.—Protection 1 acquired two commercially focused companies in August, deals that build density in Alabama and New Mexico and fit into Protection 1’s drive to grow its commercial/national accounts division into a $100 million business.

Protection 1 acquires retail-focused systems integrator

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03/19/2012

ROMEOVILLE, Ill.—Protection 1 on March 12 announced that it had acquired Camtronic Security Integration, a retail-focused security systems integrator based in Wilmington, N.C.

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