Security and protection services provider
The ADT Corporation
) recently sealed the acquisition of Reliance Protectron, Inc. -
one of the largest security monitoring and installation companies
in Canada. ADT acquired the Canadian firm from Reliance Comfort
Limited Partnership, a portfolio company of investment funds
managed by Alinda Capital Partners - one of the world's largest and
most experienced infrastructure investment firms.
With the deal, ADT has strengthened its Canadian presence to better
serve over 800,000 local customers with the best of products and
solutions along with superior customer service in the security
industry. In addition, the strategic buy will offer a steady
revenue stream to ADT as Protectron reportedly has higher levels of
customer retention than other major players in North America.
Post-acquisition, the Canadian firm will continue to use the
Protectron brand under ADT ownership.
ADT believes monitored security and home/business automation
services remain grossly under-penetrated in North American
households. In addition, rising concerns about crime and security
issues (especially by an aging population), increasing customer
interest in lifestyle and business productivity, and technology
advancements are likely to support the higher penetration of
interactive services and home/business automation. As such, the
company envisions significant growth potential and intends to
capitalize on this opportunity by leveraging on its efficient
operating model and lower technology costs over time. These would
then enable the company to considerably reduce the cost of basic
installation and services, thereby making it affordable for a wider
market acceptance by a larger portion of households and businesses.
Headquartered in Boca Raton, FL, ADT offers electronic security
products along with a wide range of interactive home and business
automation and monitoring services for residences and small
businesses in the U.S. and Canada.
ADT's electronic security and home/business automation solutions
primarily include installation and monitoring of residential and
small business security and premises automation systems. These
products are designed to detect intrusion; control access; react to
movement, smoke, carbon monoxide, flooding, temperature and other
environmental conditions and hazards; and address personal
emergencies, such as injuries, medical emergencies or
ADT currently carries a Zacks Rank #3 (Hold). Other stocks that are
worth considering in the industry include
Huron Consulting Group Inc
), each carrying a Zacks Rank #2 (Buy).
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