ADT To Merge With Brink's/Broadview
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ADT, already the largest alarm company in North America, is about to get even bigger. ADT's parent corporation Tyco International has announced it will be aquiring Broadview Security (formerly Brink's) for a reported $2 Billion U.S. in cash and stock. All existing Broadview accounts (commercial and residential) will be rebranded as ADT. The transaction still needs to be approved by Broadview shareholders and government regulators, but should be official by mid-2010. So the question is: how will this affect authorized dealers and clients of the two companies?
Authorized/Sub Dealers:
It is reported that stockholders are pleased with the buyout, and analysts agree it will benefit both companies. However, those who may not be pleased are Broadview's authorized dealers. It seems like only yesterday (June of 2009, in fact) that Brink's officially split from its parent and rebranded itself Broadview Security. Despite an extensive ad campaign, dealers no longer had the instant name recognition they enjoyed with the name Brink's. Now another major change is imminent, although (this time) name recognition should not be an issue.
Another potential problem (for ADT and Broadview dealers alike) will be geographic overlapping of sales territories. There may not be a large enough customer base in certain areas to accomodate more than one ADT dealer.
It is reported that stockholders are pleased with the buyout, and analysts agree it will benefit both companies. However, those who may not be pleased are Broadview's authorized dealers. It seems like only yesterday (June of 2009, in fact) that Brink's officially split from its parent and rebranded itself Broadview Security. Despite an extensive ad campaign, dealers no longer had the instant name recognition they enjoyed with the name Brink's. Now another major change is imminent, although (this time) name recognition should not be an issue.
Another potential problem (for ADT and Broadview dealers alike) will be geographic overlapping of sales territories. There may not be a large enough customer base in certain areas to accomodate more than one ADT dealer.
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The Top 5:
Here are the top 5 security companies in the U.S. by recurring monthly revenue and number of subscribers (Figures From 2008):
ADT: $223 Million (Recurring Monthly Revenue), 5 Million (Subscribers).
Brink's/Broadview: $40.5 Million, 1.3 Million.
Protection One: $26.7 Million, 1.8 Million.
Monitronics: $19.1 Million, 528,000.
Stanley CSS: $16.7 Million, 285,000.
Thanks to: sdmmag.com
Here are the top 5 security companies in the U.S. by recurring monthly revenue and number of subscribers (Figures From 2008):
ADT: $223 Million (Recurring Monthly Revenue), 5 Million (Subscribers).
Brink's/Broadview: $40.5 Million, 1.3 Million.
Protection One: $26.7 Million, 1.8 Million.
Monitronics: $19.1 Million, 528,000.
Stanley CSS: $16.7 Million, 285,000.
Thanks to: sdmmag.com
Existing Broadview Clients:
It is not yet known how the merger will affect customers of Broadview Security. Will there be any change in monitoring rates or the availability of services? Will the switchover require one or more service calls? Since ADT already has six monitoring centers in North America (four in the U.S., two in Canada) will either of Broadview's monitoring centers in the U.S. be shut down?
According to Paul Fitzhenry of Tyco Investor Relations, these and many other issues are to be covered in an "integration planning process" set to begin in late January or early February 2010. Once the deal is official (between April and September 2010), issues covered during this process can be implemented. We will update this article as new information becomes available.
Update: April 27/10
The deal has passed antitrust regulations, and is expected to be official by May 19/10. An executive "steering committee" and senior integration team have been assembled, and some preliminary meetings have been held to organize the integration.
It is not yet known how the merger will affect customers of Broadview Security. Will there be any change in monitoring rates or the availability of services? Will the switchover require one or more service calls? Since ADT already has six monitoring centers in North America (four in the U.S., two in Canada) will either of Broadview's monitoring centers in the U.S. be shut down?
According to Paul Fitzhenry of Tyco Investor Relations, these and many other issues are to be covered in an "integration planning process" set to begin in late January or early February 2010. Once the deal is official (between April and September 2010), issues covered during this process can be implemented. We will update this article as new information becomes available.
Update: April 27/10
The deal has passed antitrust regulations, and is expected to be official by May 19/10. An executive "steering committee" and senior integration team have been assembled, and some preliminary meetings have been held to organize the integration.
Comments From Broadview/ADT Employees:
(Added Feb 25/10) I have worked for Brinks/Broadview Security for 14 years. I have enjoyed the time until I was told Broadview is being bought by ADT...
We the employees know deep in our hearts that this buy out from ADT will end 90% of our careers. ADT does not care about the Broadview employees or its customers.TYCO/ADT is trying to create a monopoly by taking exclusive control of the home security industry. Our only hope is the US goverment takes action to stop this takeover from a company from a different country aka TYCO. Please Mr. Obama help the Brinks/ Broadview employees...Thank you.
We the employees know deep in our hearts that this buy out from ADT will end 90% of our careers. ADT does not care about the Broadview employees or its customers.TYCO/ADT is trying to create a monopoly by taking exclusive control of the home security industry. Our only hope is the US goverment takes action to stop this takeover from a company from a different country aka TYCO. Please Mr. Obama help the Brinks/ Broadview employees...Thank you.
Comments From Broadview/ADT Customers:
(Added July 19/10) Had service from ADT for many years, but saw the quality of service steadily decline. A few examples:
Came out to replace a bad battery on sensor but refused to check the batteries on any other sensor.
Took over 3 weeks to respond to bad heat sensor leaving the attic unprotected from fire.
Felt so unsafe with a repair tech had to call male friend to come over to the house while ADT tech was there.
The worst was after Hurricane Ike ADT said it would be at least 6 months before a tech could come out to repair the system.
At this point I called Brinks (now Broadview) who came out within 2 days and had a new system installed and active. We had great customer service and had been happy with company. Imagine my horror when I found out that Broadview was purchased by ADT! The very company I ran away from! Therefore I cancelled service with Broadview and went with a local company. They came right out and used the existing equipment (except for a new control panel). Now of course came the letter from Broadview demanding $517.00 termination fee! Called Broadview and they were very flippant about it and said you gotta pay. Said we could call all the attorneys we wanted but would still have to pay.We felt we contracted with Broadview, NOT ADT so felt we should not have to pay the fee, Broadview said it does not matter. Be warned! Go with a local company! Read the contract before signing!
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(Added July 11/10) I have been a very satisfied Brinks/Broadview customer for 13 years. My monitoring rate and extended service agreement rate has not been increased even once in those 13 years. I recently learned of the ADT buyout...
I have grave concerns with the ADT takeover and have not made a decision on whether to wait and see what happens or start looking for an alternative. I would like to hear from other customers and see what they are planning to do. Broadview is a BBB Accredited Business with an A+ Rating for both national and local business offices. My own experience with Brinks/Broadview, I would also rate as A+. ADT is not a BBB Accredited Business, and has a local Tempe, Arizona business office Rating of C-. I contacted Broadview about any changes ADT might be making to my account, and was provided the following which doesn't make me feel any less concerned:
Dear (Customer Name),
Thank you for your recent email concerning the merger of Broadview Security and ADT.
Although you have come to trust the Broadview name, the strength of the company is really the people behind it. Our dedicated employees continue to be committed to helping provide for the safety and security of our customers, as they have been for the last 26 years. This dedication to our customers will not change as we transition into The New ADT. As the two most trusted names in monitored security combine, we will continue to provide the level of service based on our dedication to safety, service, and "Creating Customers for Life". Once the integration is complete, we will all benefit from ADT's more than 130 years of experience. We look forward to continuing to exceed your expectations and to providing you the quality service that has kept us at the forefront of the security service industry.
As we complete the integration with ADT, your current contract with Broadview Security will not be affected, as both parties will continue to be bound by the terms of the Broadview Security Protective Service Agreement. Over time, the ADT brand will appear on your bill and our communications with you. In the short term, the billing and payment process you are accustomed to will not change. We will abide by all the Terms & Conditions of the contract that we have with each and every Broadview Security customer.
After the transition is complete, your service will reflect the combined strength of our two companies, and will be provided to you by the nation's number-one security company, The New ADT. We look forward to continuing to provide you with outstanding service.
Thank you for looking to us to help protect the people and things that matter most to you.
Sincerely,
Broadview Security
Customer Care Department
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(Added June 12/10) My wife & I live in Baltimore...
Before we met, I had Brink's for 10 years and was very pleased with the service and price (no rate hikes for 9 years! What other service could say that?). When we met, my wife had ADT. After a few instances with triggering her alarm, I found that company to be a joke. They do not call the account holder when alarm is triggered and occasional call the police when the alarm was triggered (we both pay a $20 city fee for false alarms). I am very disappointed Broadview is joining ADT. It appears their focus is on their stockholders and slick TV ads rather than on the customers who keep the lights on. I will be looking into alternatives.
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Added May 18/10) Hi There, I was just visiting your website and noticed the section about the ADT and Broadview merger. I have known about it since January, and have been regularly searching for updates on it, as I am a Broadview customer...
I called in today about canceling a service call to install two medical panic buttons and asked them about the merger, the woman I spoke to, Gloria said "We are now a Tyco International company and will be officially be called ADT in the next 2-3 months..." she then continued to say "You will receive notifications from our combined companies and will receive new yard signs/decals when we become ADT... We expect the integration to be very smooth..." When I asked about service calls she said "We don't expect many service calls, like I said, it should be very smooth."
Please visit: http://investors.tyco.com/phoenix.zhtml?c=112348&p=irol-newsArticle&ID=1427152&highlight for the press release.
Came out to replace a bad battery on sensor but refused to check the batteries on any other sensor.
Took over 3 weeks to respond to bad heat sensor leaving the attic unprotected from fire.
Felt so unsafe with a repair tech had to call male friend to come over to the house while ADT tech was there.
The worst was after Hurricane Ike ADT said it would be at least 6 months before a tech could come out to repair the system.
At this point I called Brinks (now Broadview) who came out within 2 days and had a new system installed and active. We had great customer service and had been happy with company. Imagine my horror when I found out that Broadview was purchased by ADT! The very company I ran away from! Therefore I cancelled service with Broadview and went with a local company. They came right out and used the existing equipment (except for a new control panel). Now of course came the letter from Broadview demanding $517.00 termination fee! Called Broadview and they were very flippant about it and said you gotta pay. Said we could call all the attorneys we wanted but would still have to pay.We felt we contracted with Broadview, NOT ADT so felt we should not have to pay the fee, Broadview said it does not matter. Be warned! Go with a local company! Read the contract before signing!
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Added July 11/10) I have been a very satisfied Brinks/Broadview customer for 13 years. My monitoring rate and extended service agreement rate has not been increased even once in those 13 years. I recently learned of the ADT buyout...
I have grave concerns with the ADT takeover and have not made a decision on whether to wait and see what happens or start looking for an alternative. I would like to hear from other customers and see what they are planning to do. Broadview is a BBB Accredited Business with an A+ Rating for both national and local business offices. My own experience with Brinks/Broadview, I would also rate as A+. ADT is not a BBB Accredited Business, and has a local Tempe, Arizona business office Rating of C-. I contacted Broadview about any changes ADT might be making to my account, and was provided the following which doesn't make me feel any less concerned:
Dear (Customer Name),
Thank you for your recent email concerning the merger of Broadview Security and ADT.
Although you have come to trust the Broadview name, the strength of the company is really the people behind it. Our dedicated employees continue to be committed to helping provide for the safety and security of our customers, as they have been for the last 26 years. This dedication to our customers will not change as we transition into The New ADT. As the two most trusted names in monitored security combine, we will continue to provide the level of service based on our dedication to safety, service, and "Creating Customers for Life". Once the integration is complete, we will all benefit from ADT's more than 130 years of experience. We look forward to continuing to exceed your expectations and to providing you the quality service that has kept us at the forefront of the security service industry.
As we complete the integration with ADT, your current contract with Broadview Security will not be affected, as both parties will continue to be bound by the terms of the Broadview Security Protective Service Agreement. Over time, the ADT brand will appear on your bill and our communications with you. In the short term, the billing and payment process you are accustomed to will not change. We will abide by all the Terms & Conditions of the contract that we have with each and every Broadview Security customer.
After the transition is complete, your service will reflect the combined strength of our two companies, and will be provided to you by the nation's number-one security company, The New ADT. We look forward to continuing to provide you with outstanding service.
Thank you for looking to us to help protect the people and things that matter most to you.
Sincerely,
Broadview Security
Customer Care Department
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Added June 12/10) My wife & I live in Baltimore...
Before we met, I had Brink's for 10 years and was very pleased with the service and price (no rate hikes for 9 years! What other service could say that?). When we met, my wife had ADT. After a few instances with triggering her alarm, I found that company to be a joke. They do not call the account holder when alarm is triggered and occasional call the police when the alarm was triggered (we both pay a $20 city fee for false alarms). I am very disappointed Broadview is joining ADT. It appears their focus is on their stockholders and slick TV ads rather than on the customers who keep the lights on. I will be looking into alternatives.
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Added May 18/10) Hi There, I was just visiting your website and noticed the section about the ADT and Broadview merger. I have known about it since January, and have been regularly searching for updates on it, as I am a Broadview customer...
I called in today about canceling a service call to install two medical panic buttons and asked them about the merger, the woman I spoke to, Gloria said "We are now a Tyco International company and will be officially be called ADT in the next 2-3 months..." she then continued to say "You will receive notifications from our combined companies and will receive new yard signs/decals when we become ADT... We expect the integration to be very smooth..." When I asked about service calls she said "We don't expect many service calls, like I said, it should be very smooth."
Please visit: http://investors.tyco.com/phoenix.zhtml?c=112348&p=irol-newsArticle&ID=1427152&highlight for the press release.
Do You Work For Or Represent An ADT or Broadview Dealer? Are you a customer?
We welcome your opinions on the merger. You can use the review submission page to send us your comments. They will be published on this page as we receive them.
We welcome your opinions on the merger. You can use the review submission page to send us your comments. They will be published on this page as we receive them.