Access Control Technology - Experts & Thought Leaders

Convergint Technologies has announced the acquisition of New Jersey-based Access Control Technologies (ACT), bringing further electronic security systems experience to Convergint's deep breadth of service capabilities. Convergint controls ACT’s security solutions Headquartered in Clifton, NJ, ACT provides integrated security solutions involving access control, video surveillance, identity management and alarm monitoring to over 1,000 customers in New York, New Jersey, Connecticut, Delaware and eastern Pennsylvania. All 38 ACT colleagues, including leaders Joe Liguori and Remo Cinquino, will be joining Convergint. ACT's leadership and service-oriented focus are exactly what we look for when evaluating whether an organisation is a cultural fit for Convergint Nation" "ACT's leadership and service-oriented focus are exactly what we look for when evaluating whether an organisation is a cultural fit for Convergint Nation," said Ken Lochiatto, CEO of Convergint Technologies. "We know our customers will benefit greatly from their professionalism and expertise, and we welcome them to Convergint." Strategic growth structure Convergint has strategically grown its service footprint across the United States, Canada, Europe and Asia Pacific through strong organic growth and the completion of 18 acquisitions since early 2016. Convergint's growth strategy is driven by its company mission of being its customers' best service provider. It seeks out companies whose service-first culture mirror its own, as is the case with ACT. "Our two organisations possess a strong alignment of strategic philosophies with respect to customer satisfaction," said Joe Liguori, Senior Managing Partner of ACT. "Making the decision to join Convergint was an easy one. We look forward to the prospect of being a part of Convergint Technologies' growth and adding to their capabilities."

The partnership between Cortech and ACT will provide end users with an added value solution Cortech Developments’ main software product, Datalog 5, now offers full integration with ACTpro Enterprise software designed by access control provider ACT. Mitigating risk The partnership between Cortech and ACT will provide end users with an added value solution that optimises security across large estates incorporating multiple sites and buildings. Commenting on the integration, Jason Blundell, Head of Sales at Cortech Developments, said: “The ACT collaboration demonstrates how interoperable systems mitigate risk, provide sustainable cost reduction, improve efficiency and deliver greater situational awareness.” ACT and Cortech are achieving interoperability that provides cause and effect across an unusually wide range of building systems through data merging. Facility management James Mc Alister of ACT said: “The alliance with Cortech is another example of constituent parts of facility management coming together. We’re committed to wide-ranging data solutions so working with a leading SMS provider was a logical step. ACT now offers a broader suite that can be used on complex and multiple sites.” Both Cortech Developments and ACT operate across sectors including education, healthcare, retail, utilities, transportation and government with a particular focus on high-security environments and CNI. Cortech solutions are deployed in 27 countries and ACT exports to over 40 countries.

ACTpro 4000 two-door controllers can extend to 16 doors via ACTpro door stations CBES have installed IP access control systems from ACT at Asda stores and distribution centres across the UK. The roll-out has already covered 500 sites all of which are networked to Asda’s corporate headquarters in Leeds.ACTpro 4000 door controllersAsda are benefiting from ACTpro 4000 two-door controllers which can extend to 16 doors via ACTpro door stations. In turn, up to 250 of the controllers can be networked via a PC interface. The ACT hardware offers low bandwidth and auto-discovery for easy installation and maintenance, alongside features such as timed anti-passback and counting areas.The Asda sites are using ACT’s software platform, ACTpro Enterprise, which distinguishes between different user types such as installer, security guard or system administrator so as to factor out accidental system changes and minimise maintenance. ACTpro Enterprise gives users a familiar web-browser experience using hyperlinks, ‘backwards’ and ‘forwards’ buttons and powerful search functionality.MIFARE contactless smart cardTypically, an Asda staff member might present their MIFARE contactless smart card to a reader in order to access a secure area of the site. The ACT software then grants or denies access according to the user’s privileges which can be defined according to seniority, job profile, time of day and day of the week. "The ACT software has allowed uniformity by being able to function with Asda’s existing smart cards" Asda managers are benefiting from integration of access control with CCTV and intercoms through use of the Sky-Walker Integration Platform from Belgian developer Entelec which manages disparate data types to provide a true PSIM system. At a large site such as a distribution centre, a staff member seeking an access privilege outside their user profile in terms of location or time of day might identify themselves through intercom and receive instructions. Similarly, the Entelec software can trigger CCTV recording in an unusual situation.IP-enabled building management systemRob Cox of CBES, said: “The main benefits for Asda are central monitoring from headquarters and integration of access control with CCTV and any other IP-enabled building management system in use at the stores. Crucially, the ACT software has allowed uniformity by being able to function with Asda’s existing smart cards. This has produced both financial and time savings in terms of the intrinsic value of the cards themselves and the avoidance of any re-keying of data.”CBES operate in construction, security, mechanical & electrical and risk management. The company has also installed ACT access control systems at the £225m Tunbridge Wells Hospital in Kent. The CBES security systems division uses disciplines such as access control, CCTV, perimeter protection, intruder detection and security tagging. As well as retail and healthcare, the division is active in education and the automotive industry. CBES has won many RoSPA awards, is NACOSS Gold certificated and holds relevant BSI/ISO certification in all its operational areas.

One of the biggest recent security divestitures in the news was the sale of Mercury Security to HID Global, which occurred around a year ago. The seller in that transaction was ACRE (Access Control Related Enterprises), also the parent company of Vanderbilt and ComNet. We recently spoke to founder and CEO Joe Grillo, a 30-year industry veteran, about the mergers and acquisitions (M&A) market, ACRE’s future, and new opportunities opened up by the Mercury sale. Q: What’s new with ACRE? Grillo: We have an opportunity to have organic growth and to have some scale on a global basis to be a decent size player" ACRE is a company I founded in 2012, and since then we have had six acquisitions and one divestiture. We’ll never focus on ACRE as a brand, but we currently have more visibility of ACRE as a parent company with our two strong brands, ComNet and Vanderbilt. Last year was a very busy year [with the sale of Mercury Security to HID Global] because it takes as long to sell a brand as to buy one, maybe more so. Q: What’s next? Grillo: What you are seeing from us this year is that we are again in a buying mode. No announcement yet, but we expect one by the end of the year. We are well-funded, have great partners, and see an opportunity to continue to grow acquisitively as our highly fragmented space of access control continues to consolidate. From the standpoint of ACRE, with the ComNet and Vanderbilt brands, we are also doing more integration on the backside – not what the customer sees. We will continue to grow toward a $200 million business. We were there when we owned Mercury, and we will get there again. We have an opportunity to have organic growth and to have some scale on a global basis to be a decent size player. Because ACRE are owned by a private equity company, we are brought into every opportunity: ComNet is a good example" Q: Do you see the M&A market being more competitive – more companies looking to acquire? Grillo: There’s a lot of money chasing not-so-many deals, so evaluations can get expanded. But as interest rates creep up, it is definitely a challenge to find the right valuation, the right financing and the right strategic fit. It is a very strategic market. Q: There have been some big acquisitions lately. Were you guys involved at all in evaluating those opportunities? Grillo: Because we are owned by a private equity company, we are brought into every opportunity. An example of that was ComNet. I would not have been aware that the founder passed away two years ago and that there was this opportunity to own the business. So we look at everything; anything that’s out there we look at. The biggest recent announcement in our world was S2 (being sold to UTC/Lenel), and, yeah, we looked at that. It didn’t fit our profile – it was too expensive. Great business, and it’ll be interesting to see how it fits into the UTC environment. There was also Isonas [which was recently sold to Allegion], but the size didn’t add enough scale, but I like the technology. ComNet sells communication networking solutions and products, which is more attractive than video systems for ACRE Q: So what are you looking for in an acquisition? Grillo: It’s hard for us to find something that moves the needle, and you have to find that right balance. Is it something we can digest and have the financing for, and also is there room on the back end? We are private equity-owned, so we know there will be an exit for our investors, too. So we have to find the right balance, good valuations, the right size and digestible. If you look at our acquisitions, we have done two “carve outs.” The Vanderbilt name didn’t exist until we bought the business from Ingersoll Rand, and then we bought the [intruder] business from Siemens. That’s how Vanderbilt came about. You get a lot of value when you carve out a business, but there’s a lot of work. In the case of Mercury or Access Control Technology (ACT) that we acquired; they were growing and profitable but they stretch your finances a lot more. So you have to find the right mix in there. Q: Does video interest ACRE at all? Grillo: We have to find the right balance, good valuations, the right size and digestible"ComNet is our video play. ComNet sells communication networking solutions and products, and 70 to 80 percent of that is used for video systems. But unlike cameras, which don’t interest us, it’s actually good margins, highly specialised repeat business and with good channel partners. So where are we going to play? Cameras – no (because of commoditisation). We have some recorder technology (from the Siemens acquisition) and we have the communication networking technology (with ComNet). On the software side, we have looked at a lot of the VMS companies, and a lot of them have been on the market. But the valuation expectations can be high because they are software companies. And we really believe in partnering as a good thing, too. If we integrate to Milestone or Salient or some of these companies, we will never lose an access control client because they chose a particular VMS. Q: ACRE is also looking to grow organically, isn’t it? Grillo: From a technology perspective, we are a product company and we are continuing to bring new products to the market with the ComNet communication networking business and the access control business. And in Europe, we have a third leg of the stool, which is the very successful intrusion and burgular alarm business we acquired from Siemens (SPC products now sold under the Vanderbilt brand). That business continues to do well and is now one of the highest performing segments in our portfolio.The intrusion and burgular alarm continues to do well and is now one of the highest performing segments in our portfolio" Q: But you don’t have to own a company to make it part of your solution. Grillo: An important word is integration. We have to integrate to all the wireless locks. We have to integrate to the VMS systems. But we don’t have to own them. Q: How has the Mercury Security divestiture impacted the rest of your business? Grillo: It has opened up the opportunity for us to look at Mercury partners as possible acquisition targets without worrying about conflicts with the very good business of Mercury. We have more flexibility now compared to the Mercury era. Q: How will the economic cycle impact the security market? Grillo: Interest rates are a much bigger issue than the overall economic cycle. We talk a lot about it with our owners – clearly interest rates are tightening up. If you go out to do acquisitions or to borrow money to do something with your business, it will be tougher than it was two years ago, and it may get worse in the next two years. Security is less impacted by the economic cycle than some industries.

The year of 2016 ended with Vanderbilt finalising the acquisition of Access Control Technology Ltd., which strengthened the company’s product portfolio and introduced an entirely new market segment to partners and customers in Ireland and the United Kingdom. ACT brings an existing cloud-based access control solution to Vanderbilt, thereby complementing the existing product mix. This new technology adds significant value to our customers in Europe, and we plan to deliver it to our customers in North America very soon. Integrated security approach Along those lines, the access control market is seeing a sizable shift from a siloed approach to that of an integrated solution that combines video surveillance, access, analytics and cloud-based functionality that can better serve organisations of all sizes, from small- and mid-size establishments, to enterprise facilities with global footprints. Today's modern organisations require manufacturers and integrators to add more value to installations by combining critical systems, such as access control with human resources programmes, to eliminate standalone systems and data points, and increase the efficiency of operations. Rise in cloud-based systems In the coming year, we will see a rise in cloud-based systems, as these types of solutions are growing at an incredible pace globally. The cloud forms a massive part of the overall IT landscape and spending in this type of infrastructure is set to grow exponentially over the next few years. Cloud-based access control in particular offers users the benefit of remote control over systems, flexible monitoring and an integrated approach to security. Network latency and cybersecurity are other key concerns going into 2017, as we’ve seen a number of critical data breaches wreak havoc on both private entities and government agencies. Stakeholders have already been asking the question, “Is my data secure?” and today’s integrators and manufacturers will have the burden of proof in assuring them that safety is at the core of the products they sell. See the full coverage of 2016/2017 Review and Forecast articles here

Merger and acquisition activity has become a familiar topic in the physical security market. In 2016, SourceSecurity.com covered M&A news involving some of the industry’s largest companies, including high-profile names such as Tyco, Honeywell, Hikvision, ADT, and Ingram Micro. Here’s a look at the top 10 M&A stories in 2016, as covered by SourceSecurity.com:   1. Johnson Control and Tyco merge Johnson Controls and Tyco announced their merger into one company with annual revenue of $32 billion. Johnson Controls, a global multi-industrial company, combined with global fire and security provider Tyco to create a leader in building products and technology, integrated solutions and energy solutions. Johnson Controls previously had a small presence in the physical security market, but their products have mostly centred around building controls, HVAC and energy storage technology. For its part, Tyco’s focus on video, access control and alarm systems has expanded to consider those systems in the context of broader building systems. The trend toward convergence in the building market is the common ground for these companies, and a major driver in their decision to merge under the name Johnson Controls. 2. Honeywell acquires Xtralis and RSI Video Technologies Industry giant Honeywell agreed to acquire Xtralis, a global provider of aspirating smoke detection and advanced perimeter security technologies and video analytics software, for $480 million from funds advised by Pacific Equity Partners and Blum Capital Partners. Honeywell saw Xtralis' systems as complementing their growing Security and Fire business. A month or so later, Honeywell also acquired RSI Video Technologies, provider of the Videofied Intrusion Detection System, for $123 million. Upon completion of the acquisitions, both would become part of Honeywell Security and Fire. Honeywell also made headlines for a deal that didn’t happen. It seems Honeywell wanted to merge with UTC, but UTC declined because of “insurmountable regulatory obstacles and strong customer opposition.” 3. Ingram Micro acquired by Chinese Conglomerate Ingram Micro Inc. and Tianjin Tianhai Investment Company, Ltd. announced a merger agreement under which Tianjin Tianhai would acquire Ingram Micro for $38.90 per share in an all-cash transaction with an equity value of approximately $6 billion. Ingram Micro would become a part of HNA Group, a Hainan-based Fortune Global 500 enterprise group and a leader in aviation, tourism and logistics and the largest stockholder of Tianjin Tianhai. ADT holds the largest share of the U.S. residential security market, and a respectable small business presence 4. ADT Merges with Protection 1 ADT, the well-known home and small business security company, which traces its history back to 1874, agreed in 2016 to be acquired by private equity firm Apollo Global Management, and would merge with competitor Protection 1, a subsidiary of Apollo-owned Prime Security Services Borrower LLC. The announcement comes amid rapid changes in the residential security and home automation market, much of it driven by emerging Internet of Things (IoT) technology. ADT holds the largest share of the U.S. residential security market, and a respectable small business presence. Protection 1 began in 1991 when it was spun off from PacifiCorp., a power utility. It grew rapidly, largely through acquisition, into a full-service business and home security company. 5. Konica Minolta acquires majority shares of MOBOTIX Konica Minolta, Inc. entered into a share transfer agreement to acquire shares comprising about 65% ownership of German manufacturer MOBOTIX, developer of technologies including decentralised processing (edge computing) IP cameras, image data compression, and image data analytics. The deal was estimated at between $177 million and $265 million. Konica Minolta seeks to broaden the distribution of MOBOTIX products and solution services by leveraging its global direct sales network and after-sales support and services systems. 6. Hikvision acquires Pyronix Hikvision, the world’s largest video surveillance manufacturer, announced the acquisition of Pyronix, the UK-based intrusion alarm security firm. Hikvision planned to apply Pyronix expertise and know-how in intrusion detection systems to its leading position in the video surveillance market. The combined know-how of Hikvision and Pyronix seeks to bring new advancements and innovative products to the market, converging two security technologies in video surveillance and intrusion detection. 7. Merger creates AlliedUniversal brand AlliedBarton Security Services and Universal Services of America agreed to merge, combining to do business under the AlliedUniversal brand. The combined company offers clients localised response and national support using technology solutions and approximately 140,000 highly-trained officers. The combined company is expected to have total annual revenues of approximately $4.5 billion. AlliedUniversal brand offers clients localised response and national support 8. Acre acquires two companies ACRE, LLC, the holding company that owns Vanderbilt Industries and Mercury Security, made two more acquisitions this year. Through its subsidiary Vanderbilt, a global provider of state-of-the-art security systems, Acre acquired Access Control Technology Ltd (ACT), based in Dublin, Ireland. This purchase would enhance Vanderbilt’s strategic expansion plans for strengthening its access control business and product portfolio. Later in the year, Acre also announced plans to acquire Communication Networks LLC (dba ComNet), a manufacturer of video and data transmission equipment. The acquisition of ComNet builds on the ACRE family of companies, providing complementary communication technologies utilised across its access control, intrusion, video, and cloud-based product ranges. 9. Gemalto to buy 3M’s identity business Gemalto, a provider of digital security, agreed to acquire 3M's Identity Management Business for US $850 million; it will become part of Gemalto Government Programs. 3M's Identity Management Business is comprised of 3M Cogent Inc., which provides a full spectrum of biometric solutions with a focus on civil identification, border control and law enforcement, and 3M's Document Reader and Secure Materials Businesses. 10. Bosch and Sony partner up Although technically not a merger or acquisition, Bosch Security Systems and Sony signed a contract to establish a business partnership to collaborate in the development of products and solutions in the field of video security applications, beginning in 2017. Bosch will handle the sales and marketing globally for all of Sony’s video surveillance products (outside of Japan). The two companies will also pool their technology expertise, leveraging Sony’s imaging capabilities and Bosch’s analytics and networking strengths. See the full coverage of 2016/2017 Review and Forecast articles hereSave Save Save