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Devcon Security

ADT to acquire Devcon Security for $148 million

ADT looking for more acquisitions
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07/31/2013

BOCA RATON, Fla.—The ADT Corp. announced this morning that it plans to acquire Devcon Security from Golden Gate Capital for $148.5 million. The deal—ADT’s first major acquisition since spinning off from Tyco International last fall—brings 117,000 accounts and $3.6 million of RMR. The transaction is expected to close in early August, Naren Gursahaney, ADT CEO, said during an investor call today.

Richard Ginsburg named CEO of Central Security Group

Former Protection 1 CEO will take CSG national
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07/08/2014

TULSA, Okla.—Super-regional security company Central Security Group today named Richard Ginsburg as CEO. Ginsburg, who as CEO of Protection 1 grew it into one of the top three security companies in the country from 2001 to 2010, said he wants to grow CSG into a “significantly larger company.”

Guardian hires another Devcon exec

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Wednesday, April 16, 2014

I wrote recently about Barry Bruce becoming Guardian Protection Services’ new senior VP of corporate sales. Bruce formerly was VP of national sales for Devcon Security, the residential security company that ADT acquired last summer.

Now Warrendale, Pa.-based Guardian has hired another former Devcon VP, Guardian announced today.

Michael Brand, who was VP of sales at Devcon, joined Guardian on April 3 to become director of Guardian’s southern region, assuming responsibility for all sales and operations, the company said. The region includes branches in Austin, San Antonio, Tampa, Charlotte and Philadelphia.

Brand was hired by Devcon in 2010 and then worked for ADT after it bought that company. “During his tenure,” Guardian said in a news release, “Mr. Brand held the positions of area manager, regional director and vice president of sales, including responsibilities for sales and field operations for the residential, commercial and HOA (home owners association) business segments.”

Before he joined Devcon, Brand worked for Brink’s, where he was general manager for that company’s Deerfield, Fla. branch, the news release said.

His previous experience includes leading New Jersey and Massachusetts branches of Enterprise Rent-a-Car, and being a sales training coach with AT&T’s broadband division, according to the news release. It said Brand has a B.A. in communication from Hofstra University.

In a prepared statement, Bruce praised his new (and former) colleague: “I have worked with Mike Brand in the past and have great confidence in his capabilities. I have no doubt he will help us achieve new levels of success in our southern region.”

 

ADT adds 100,000 customers in fiscal 2013 and its Devcon buy boosts its RMR, but attrition climbs to 13.9 percent

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Wednesday, November 20, 2013

Just about one year after The ADT Corp. split from Tyco International and became a stand-alone, publicly traded company, the company reported today that its RMR climbed 4.7 percent in Q4 and that the rise was helped by its acquisition of Devcon Security this summer.

Boca Raton, Fla.-based ADT, which officially became independent Sept. 28, 2012, reported its Q4 and fiscal year 2013 results today. It added 100,000 subscribers in 2013, bringing its total customer based to 6.5 million, the company said.

ADT also reported average revenue per user (ARPU) had climbed to $40.31, an increase of 3.7 percent, and said that helped increase RMR. The company also said its ADT Pulse overall take rate was at 32 percent in Q4, up from 13 percent last year due to new customers and price escalations to existing ones.

In the earnings call, ADT CEO Naren Gursahaney said, "We recently passed the 500,000 mark with Pulse customers. Just to put that into perspective for you, if Pulse was a stand-alone business, it would be the sixth largest security provider in North America. While this a major milestone for us, it still only represents about 8% of our total customer base, so we still have a tremendous opportunity to further grow our Pulse customer base."

Gursahaney also said that in Q4, "Net attrition increased by 10 basis points sequentially and 40 basis points year-over-year to 13.9 percent, with more than 100 percent of the increase attributable to higher relocation disconnects as a result of the continued recovering in the housing markets." The company is launching new programs to address attrition, which it plans to announce soon, he said.

The company’s revenue increased in Q4 by 4 percent to $846 million from $812 million, higher than the $843.8 million analysts expected. EBITDA was $431 million in Q4,  up 7.5 percent compared to the previous year.

Much of ADT’s total revenue is recurring revenue, the report said. RMR was $777 million in Q4. The company also said small business RMR growth for fiscal 2013 was 7 percent, up from 3 percent in 2012.

Just before its Nov. 20 earnings report, ADT announced this week it was defending its turf by suing Utah-based Vision Security for the second time over Vision’s alleged deceptive sales practices. The new lawsuit comes shortly after Vision and Security Networks, of which Vision is an affiliate, “settled with ADT for $2.2 million and agreed to a permanent injunction [from] engaging in similar practices,” according to an ADT news release.

Vision told me it denies ADT's allegations and intends to fight them.

The AP reported ADT’s shares closed at $42.81 yesterday, Nov. 19. Shares are down 8 percent for the year to date, the AP said.

Gursahaney predicted positive results for fiscal 2014, with revenues and RMR climbing 4 percent to 5 percent. "I'm confident the momentum we have built, coupled with the improvement programs we have implemented to address our challenges, will position us for continued revenue growth and operational improvements in 2014," he said.

Need lower attrition? Balance price and value

Analyzing customers’ habits can be the key to long-term retention, says Devcon’s Brandon Savage
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05/07/2013

YARMOUTH, Maine—When it comes to alarm services, customers can choose packages ranging from a Pinto to a Ferrari. If you’re lucky, they’ll pony up for a Ferrari. But will they get their money’s worth by putting it through its paces?

Pro 1 dives into summer sales with Pinnacle buy

Pro 1 acquires ‘select’ Pinnacle assets, saying it wants to integrate Pinnacle’s ‘seasonal selling model’ with Pro 1’s ‘brick-and-mortar’ approach
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01/28/2013

ROMEOVILLE, Ill.—Protection 1 is getting into the summer-sales market by buying some of the assets of Pinnacle Security, one of Utah’s leading door-knocking companies.

Devcon Security on the block?

Company CEO: Devcon’s private equity owner considering sale due to favorable market and interest from potential buyers
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11/14/2012

HOLLYWOOD, Fla.—Devcon Security, a super-regional based here that has been rapidly downsizing this year after a period of aggressive expansion, could soon be up for sale.

Devcon’s new operations center to shut its doors in September

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Wednesday, August 8, 2012

I reported this summer that Devcon Security, a Hollywood, Fla.-based super-regional, was planning to shut down its new 23,000-square-foot national operations center in Irving, Texas by the end of the year.

Now it appears the closing will take place next month. Devcon plans to close the facility Sept. 5, laying off 197 employees, according to a report this week by the Dallas Business Journal. The facility opened in February 2011.

CEO Steve Hafen previously told me that closing the center was part of a company plan to reduce expenses and strengthen the company’s finances for future profitability and growth.

The company also is closing branches nationwide, a reversal of a rapid expansion it had recently undergone. In the past 18 months, Devcon, acquired by San Francisco-based Golden Gate Capital in 2009, transformed itself into a national player with more than 50 branches around the nation.

Hafen previously told me: “Devcon has experienced many changes over the past 18 months, including an aggressive growth initiative and subsequent streamlining of some branch operations.” He said then a reduction in the company’s workforce was anticipated.

The business journal reported that Devcon issued a statement saying that it “has aimed to, and has already made progress on, helping displaced employees transition into new opportunities through job fairs and résumé assistance programs. Devcon Security believes that these changes, while challenging, will strengthen the company and enable more opportunities for those in the industry long term.”

Devcon closing more branches

Reductions in company expenses and streamlining are designed to ‘set the stage for future success,’ CEO says
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07/11/2012

HOLLYWOOD, Fla.—Devcon Security—a super-regional based here that grew to a national player in the past year and a half—is downsizing to reduce expenses and strengthen the company’s finances for future profitability and growth, according to Devcon’s new CEO, Steve Hafen.

Devcon moves to ‘streamline,’ ‘trim’ after rapid growth

After recently expanding to 50 branches nationwide, Devcon now plans more strategic growth, according to new CEO
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04/11/2012

HOLLYWOOD, Fla.—After a rapid expansion during the past 18 months, Devcon Security is streamlining its business but is still planning to grow nationwide, according to the company’s new CEO, Steve Hafen.

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