Consolidation changing the face of the security market

Consolidation is a dominant trend in the security marketplace. Large companies typically swallow up smaller companies as a means of expanding both their technology portfolios and their geographic reach. Sometimes a big fish is swallowed up by an even bigger fish.  

Despite the pandemic and resulting economic challenges, the security market has continued to be a desirable environment for both big players and startups, which then provide abundant acquisition targets for the larger companies.

Acquisitions of Motorola

Motorola Solutions has been among the most acquisitive of the larger players, recently adding several smaller companies to their growing portfolio. Just this year, Motorola has acquired Ava Security, a video security and analytics company; Calipsa, another analytics company; and Videotec, an Italian provider of ruggedized video solutions for critical infrastructure applications.

Video solutions that help to enhance safety and streamline operations while supporting customers

In one announcement, Motorola chairman and CEO Greg Brown stated the goal of acquisitions is “to support our customers’ evolving security needs by expanding our portfolio of intelligent video solutions that help to enhance safety and streamline operations.”

Previously, Motorola Solutions acquired Envysion, a video analytics company for the retail market. On the access control side, Motorola acquired Openpath Security, a cloud-based, mobile access control provider, in 2021. Motorola entered the video surveillance business back in 2018 with the acquisition of Avigilon for around $1 billion. Also now a part of Motorola are IndigoVision and Pelco, among others.

ACRE's mergers and acquisition

Another company active in the mergers and acquisition market has been ACRE (Access Control Related Enterprises). The company began with a spinoff from Ingersoll Rand in 2012 to become Vanderbilt Industries.

As ACRE, the parent company has been active both in acquisitions and divestitures over the next decade. Vanderbilt grew with the acquisition of Siemens’ Security Products in 2015. ACRE owned Mercury Security, a manufacturer of OEM hardware used by access control companies, from 2013 until it was sold to HID Global in 2017.

The acquisition of Razberi enhances the ComNet portfolio while providing complementary technologies

ACRE’s more recent access control acquisitions are RS2 Technologies (in 2019), Open Options (2018), Feenics (2021), and Matrix Systems (2021). They acquired ComNet, a manufacturer of video and data transmission equipment, in 2016.

The acquisition of Razberi (in 2020) enhances the ComNet portfolio and provides complementary technologies to the access control brands.

Acquisition of ACRE

ACRE itself was acquired by European investment firm Triton in 2021, and Joseph Grillo, the company’s founder and CEO, announced his retirement in 2022.

His knowledge of the security and access control markets helped to drive the company’s growth, including 11 successful acquisitions in all.

Securitas acquiring Stanley Security 

The acquisition of Stanley Security is transformational for both Securitas and the security industry

Stanley Security has also made headlines. In December 2021, Securitas signed an agreement to acquire the Electronic Security Business from Stanley Black & Decker for $3.2 billion in cash.

Securitas President and CEO Magnus Ahlqvist says, “the acquisition of Stanley Security is transformational for both Securitas and the security industry.”

Allegion plc, global security products and solutions provider, later signed an agreement to acquire Stanley Access Technologies and assets related to the automatic entrance solutions business from Stanley Black & Decker, Inc. for $900 million.

Acquisition by HID Global, ADT Inc. & Allied Universal

HID Global has acquired Vizinex RFID, thus increasing its presence and relevance in key vertical markets, including healthcare/medical, manufacturing, oil and gas, data centres, etc. and adding a key technology to HID Global’s RFID tag portfolio.

ADT Inc. recently expanded its geographic reach with the acquisition of Key-Rite Security, a locally owned and operated security provider specializing in access control, surveillance, intrusion, and intercom systems in Colorado and for customers across the United States.

Allied Universal continues its strategic growth with the acquisition of Attenti Group, an electronic monitoring company

Allied Universal has acquired Star Protection Agency, the largest Hawaiian-owned and veteran-owned security company in the state. Although Star is primarily a guard patrol service, with workers at 125 sites throughout the state, it provides a range of security technology and consulting services.

Internationally, Allied Universal continues its strategic growth with the acquisition of Attenti Group, an electronic monitoring company. Allied Universal will integrate Attenti Group with G4S Monitoring Technologies, to create Allied Universal Electronic Monitoring Services.

SALTO Systems making acquisition news

Also internationally, SALTO Systems has made acquisition news by investing in Bluefield Smart Access, thus strengthening their portfolio of access control solutions. SALTO Systems is a manufacturer of electronic access control and operating system solutions, designed to provide a seamless, keyless and mobile experience for modern buildings.

Also joining the SALTO Group is Cognitec Systems, a face recognition company. The goal is to strengthen their research, development and market reach while working with SALTO on new technologies for expanding biometric markets.

SALTO strategically selected Cognitec Systems to meet market requests for adding face recognition and artificial intelligence (AI) technologies to the company’s electronic access control and ticketing solutions.

Acquisitions by MOBOTIX and Resideo Technologies 

Resideo Technologies, Inc. entered into an agreement to acquire First Alert, Inc., a provider of home safety products

Further, on the international scene, MOBOTIX has reached an agreement to acquire Vaxtor Group, Tres Cantos, Spain, an artificial intelligence (AI) based video analytics provider, specializing in Optical Character Recognition (OCR) and Deep Learning technologies.

On the residential system's front, Resideo Technologies, Inc. entered into an agreement to acquire First Alert, Inc., a provider of home safety products, from Newell Brands Inc. for $593 million in an all-cash transaction.

Established in 1969 and based in Aurora, Illinois, First Alert offers a strong omnichannel presence serving end-users directly through retail and e-commerce channels and professional contractors through relationships with distributors and home builders.