S2 Security Corporation US - Experts & Thought Leaders

LenelS2, global provider of advanced access control systems and services, is slated to showcase three new user interface (UI) options for Lenel Network Video Recorder (LNVR) customers at the International Security Conference & Exposition (ISC) West event, taking place in Las Vegas in April 2019. The company will also introduce new cloud-based offerings to enable customers’ cloud journeys and other key partnership integrations. LenelS2 is a part of Carrier, global provider of innovative heating, ventilating and air conditioning (HVAC), refrigeration, fire, security and building automation technologies. Video-assisted mobile monitoring Magic Monitor tightly integrates with video management software from Milestone LNVR customers can now use OnGuard Monitor for video-assisted mobile monitoring, OnGuard Surveillance for lightweight video viewing and Magic Monitor for unified security management. Using OnGuard Monitor and OnGuard Surveillance as complete browser-based solutions, customers can make video viewing available to all appropriate employees without installing UIs at each workstation, while ensuring permissions are enforced.       Magic Monitor joined the company’s product portfolio in the fall of 2018 when Lenel acquired S2 Security, forming LenelS2. Magic Monitor’s unified UI expands OnGuard’s capabilities with the addition of digital signage and internet-streamed TV. The integration of OnGuard data into Magic Monitor allows the display of events and alarms, LNVR video, cardholder photo verification at selected doors and interaction with the OnGuard hardware tree, as well as cardholder search and management. Additionally, Magic Monitor tightly integrates with video management software from Milestone, which maintains a long-standing and recently expanded distribution relationship with LenelS2. Integration with OnGuard security platform “When integrated with the OnGuard platform, the easy-to-install and customisable Magic Monitor software empowers customers’ operations centers, as well as controls messaging across their facilities for safety, informational or marketing purposes,” said Jeff Stanek, president, LenelS2. “The combination of Magic Monitor, OnGuard Monitor, OnGuard Surveillance and Milestone XProtect, ensures we have a unified security and video solution for every customer application.”  LenelS2 also announced convenience enhancements to its BlueDiamond mobile credentialing solution. BlueDiamond Pathways and a new Phone as a Badge (PhaaB) feature enables authorised users to enter offices and meeting rooms while leaving their smartphones in a pocket or bag. Cloud Deployment Guide LenelS2 has added support for hosting OnGuard in the Amazon Web Services (AWS) cloud environment Expanding on the ability to host OnGuard in the Microsoft Azure environment, which began with OnGuard version 7.4, LenelS2 has added support for hosting OnGuard in the Amazon Web Services (AWS) cloud environment. LenelS2 is also releasing a Cloud Deployment Guide providing operational and logistics details for decision-makers who will be deploying OnGuard in an Infrastructure as a Service (IaaS) or Platform as a Service (PaaS). In addition to the new product features above, several new OnGuard system partner integrations were also announced. Support for the latest Bosch B-series control panels and XR-series boards from DMP enable OnGuard users to monitor alarms and the status of intrusion devices, as well as leverage OnGuard’s ability to arm and disarm alarm systems. Also, OnGuard now supports integration with CertiPath TrustVisitor, a state-of-the-art visitor management platform designed specifically for federal agencies using an approved OnGuard HSPD-12/FIPS 201 physical access control solution. TrustVisitor enables users to know in real time exactly who is in any facility. IC-Edge intelligent communications platform The integration of Zenitel’s new intelligent communications platform, IC-Edge, provides OnGuard users with a simple and powerful way to incorporate voice communications into customers’ unified security strategy, enabling better decision making and faster incident response through unrivaled sound quality, interoperability, security and ease of use. “We are very excited to work with respected industry leaders like Bosch, DMP, CertiPath and Zenitel,” said Stanek. “Our OnGuard open architecture design enables users to tailor intrusion, visitor management and communications technology to meet their specific needs.” Lenel’s new integrations and products will be on display from April 10-12 at ISC West 2019, in booth #18019 in the Sands Convention Center in Las Vegas.

UTC Climate, Controls & Security has agreed to acquire S2 Security, a developer of unified security and video management solutions. UTC Climate, Controls & Security is a provider of fire safety, security, building automation, heating, ventilating, air conditioning (HVAC) and refrigeration systems, and is a unit of United Technologies Corp. Enhanced service capabilities "This move is well aligned with our strategic focus to grow our core business and increase innovation," said Alex Housten, VP & General Manager, Fire & Security Products, a part of UTC Climate, Controls & Security. "We look forward to providing enhanced service capabilities and offerings for our customers, and accelerating our access control and video-centric solutions for intelligent buildings across the globe." John Moss, Founder and Chief Executive Officer, S2 Security said, "Considering the complementary customer bases and product portfolios of our two companies, this is a natural step that will benefit our customers, employees, and channel partners." The acquisition is subject to customary closing conditions and regulatory approvals.

S2 Security, the developer of complete enterprise security solutions, announces S2 Magic Monitor Version 6.1. With a range of media options that now includes Internet-streamed TV as well as enhancements to Magic Monitor Forensics, S2 Magic Monitor Version 6.1 is the most flexible, versatile solution for security operations and enterprise-wide communication. “Broadcast television plays a critical role in situational awareness as well as entertainment,” said John L. Moss, CEO, S2 Security. “Whether you’re seeing an important world event unfold or watching the ball game in the cafeteria, Magic Monitor does it.” Provides numerous enhancements Version 6.1 introduces Internet-streamed TV, enabling users with a YouTube TV account to display a wide variety of content in S2 Magic Monitor. Users can push TV streams to an external Magic Monitor, further expanding digital signage capabilities throughout the enterprise. In addition, Version 6.1 provides numerous enhancements to Magic Monitor Forensics that make locating and sharing information about recorded video easier than ever. The Forensics timeline now visually differentiates types of recorded content. Users can add visual bookmarks as well as descriptive text to bookmarks. This feature can be utilised to make notes, create reminders or relay information to another team member reviewing the footage. Users can also aggregate, search for and edit bookmarks, which simplifies navigation back to the video once it has been located.

Consolidation persisted in the physical security industry in 2018, and big companies such as Motorola, Canon and UTC continued to make moves. Also among the mergers and acquisitions (M&A) news in 2018 was a high-profile bankruptcy (that ended well), continuing consolidation in the integrator market, and the creation of a new entity called “LenelS2.” Here’s a look at the Top 10 M&A stories in 2018: 1. Motorola acquires Avigilon Motorola Solutions announced in February that it had entered into a definitive agreement to acquire video surveillance provider Avigilon in an all-cash transaction that enhances Motorola Solutions’ portfolio of mission-critical communications technologies. Avigilon products are used by a range of commercial and government customers including critical infrastructure, airports, government facilities, public venues, healthcare centers and retail. The company holds more than 750 U.S. and international patents. 2. UTC Climate, Control & Security buys S2 Security UTC Climate, Controls & Security agreed in September to acquire S2 Security, a developer of unified security and video management solutions. UTC subsequently combined S2 with its Lenel brand to create LenelS2, “a global leader in advanced access control systems and services” with “complementary strengths.” 3. Costar Technologies acquires Arecont Vision after bankruptcy Arecont Vision, the provider of IP-based megapixel camera and video surveillance solutions, announced in July that the acquisition by Costar Technologies, Inc. of its assets had been approved by the bankruptcy court. After the closing of the sale, the company began operating as Arecont Vision Costar, LLC and is part of Costar, a U.S. corporation that designs, develops, manufactures, and distributes a range of products for the video surveillance and machine vision markets. 4. Allegion acquires access control company ISONAS Allegion plc, a security products and solutions provider, agreed in June to acquire ISONAS through one of its subsidiaries. ISONAS’ edge-computing technology provides access control solutions for non-residential markets. ISONAS' devices – like its integrated reader-controllers – utilise power over ethernet, making them easy to install and cost effective as they utilise existing customer infrastructures. The company is based in Boulder, Colo. 5. HID buys Crossmatch for Biometrics HID Global announced that it had acquired Crossmatch, a provider of biometric identity management and secure authentication solutions, from Francisco Partners. Crossmatch’s portfolio of products includes biometric identity management hardware and software that complement HID’s broad portfolio of trusted identity products and services. 6. BriefCam announces acquisition by Canon BriefCam, a global provider of video synopsis and deep learning solutions, announced its acquisition in May by Canon Inc., a global digital imaging solutions company. The addition of BriefCam to Canon’s network video solutions products portfolio complements the Canon Group’s previous acquisitions of Axis Communications and Milestone Systems. 7. Allied Universal acquires U.S. Security Associates Allied Universal, a security and facility services company, finalised its acquisition of U.S. Security Associates (USSA) in October, further building on its position in the security services industry. This acquisition includes Andrews International (including its Government Services Division and Consulting and Investigations and International Division) and Staff Pro. 8. Johnson Controls acquires Smartvue Corp. Johnson Controls announced in April that it had acquired Smartvue, a global IoT and video provider that empowers cloud video surveillance and IoT video services. The addition of the Smartvue cloud-based video platform will enhance Johnson Controls’ offering of an end-to-end, smart cloud-based solution that can provide superior business data and intelligence to customers and added value to partners. 9. ADT acquires Red Hawk Fire & Security (and others) ADT Inc.’s acquisition of Red Hawk Fire & Security, Boca Raton, Fla., was the latest move in ADT Commercial’s strategy to buy up security integrator firms around the country and grow their footprint. In addition to the Red Hawk acquisition, announced in mid-October, ADT has acquired more than a half-dozen security system integration firms in the last year or so. 10. Convergint Technologies continues to acquire Convergint Technologies announced in August the acquisition of New Jersey-based Access Control Technologies (ACT), bringing further electronic security systems experience to Convergint's service capabilities. 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. And it continues: Convergint announced acquisition of SI Technologies, Albany, N.Y., in November and Firstline Security Integration (FSI), Anaheim, Calif., in December. (And Convergint itself was acquired in February by private equity group Ares Management.)

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.

More good news for exhibitors on the second day of the Global Security Exchange (GSX) in Las Vegas. Brisk attendance continued early in the day, and then slowed somewhat in the afternoon, but most comments from exhibitors were positive. Exhibitors such as Lenel were “thrilled” with the show, and noticed the steady, good traffic and lots of sales leads. Lenel’s position at the front of the hall probably helped. New developments in mobile credentialing are a big trend at GSX, and Lenel’s BlueDiamond mobile credentials are traveling on a new path, so to speak. The access control company is introducing the idea of “Pathways” as a way of automatically signaling intent to a Bluetooth-enabled smart phone to open a door. A recognisable “pathway” is programmed into the phone, based on signals from nearby readers and locks and also geolocation signals. The system recognises when a user travels along the pathway and automatically signals the correct door(s) to be opened along the way without the user having to touch his smart phone.A recognisable “pathway” is programmed into the phone, based on signals from nearby readers, locks and also geolocation signals Providing a lightweight alternative “When you trigger a pathway, it’s signalling intent to open the door,” says Greg Berry, Vice President Mobile Credentialing, Global Security Products, for United Technologies, parent company of Lenel. “Pathways are customised to a user’s needs and are the common places you are going all the time.” A user who walks the same path daily to the door of an office will find that door opens automatically. Previously using mobile credentials has been “slightly more work than using a badge,” says David Weinbach, Manager of Identity and Product Innovation for Lenel. “Now with Pathways, it’s less work than using a badge.” Specifically, a user no longer has to take out his phone and push a button to signal intent. “Rather than trying to emulate the badge, you create an experience that is better than the badge,” adds Berry. “We want to change the paradigm and turn the market on its ear.”New browser-based clients are being released with each new version of OnGuard software Other news from Lenel includes the release of more mobile and browser-based clients for OnGuard to be used for greater convenience alongside the Window-based clients. Providing a “lightweight” alternative enables some of the functionality of the Windows client in a format that is easy to access on the go. New browser-based clients are being released with each new version of OnGuard software. Cloud-hosted systems using Microsoft Azure are also among the plans for OnGuard, which ultimately will offer on-premises and cloud options. There’s not much comment from the Lenel folks about their parent company United Technologies’ plan to acquire S2 Security, which was announced days before the show. They would only say that the acquisition is waiting for regulatory approval, and that the expectation is that the two companies’ products will be complementary, given S2’s focus on the SMB (small and medium-sized business) market and Lenel’s strength at the enterprise level. The acquisition strategy is to grow both businesses. More details to come about the new combined company. Modern network infrastructure NVT Phybridge, a PoE connections company located near the back of the hall, also reported steady booth traffic on Day 2. “There are lots of customers and partners here,” said Steven Fair, Executive Vice President. “We are pleased with the quality of people, but not overwhelmed with the quantity.” FacePRO AI facial recognition is used for real-time searches of terror suspects or criminals throughout a location NVT Phybridge, which provides IP networking products for the telephony industry as well as security, is focused on networking concepts at GSX, in particular the changing requirements for network infrastructure in the age of IoT. We are pleased with the quality of people, but not overwhelmed with the quantity.” Fair uses the term “Modern LAN” to describe the new, changing requirements and in consideration of the specific networking needs of each edge device, whether cameras, sensors, or door access control devices. “Start with the edge device — what does it need from the network? What are its needs and have there been any innovations to enable you to connect to the network more economically?” asks Fair. There is also a green aspect to designing network infrastructure. Can existing equipment, such as coaxial or single twisted-pair cabling, be used, and thus save on disposal costs of the used cabling as well as lowering installation costs? Among NVT Phybridge’s offerings that can serve the changing networking needs in the IoT era is Smart Path PoE, which offers smart power, smart network access and secure connections. The CLEER family of products provides ethernet over existing coaxial cabling to enable easy transition from analogue to IP cameras. The PoLRE products supply ethernet and power to travel over a single unshielded twisted pair cable with reach over 400 metres. The products have been used recently to transition a series of cruise ships from analogue to IP video without having to replace cabling and spending only two days in dry dock for the installs. A new focus away from AI Panasonic is looking to apply AI-based capabilities to vehicle recognition in the near future, with the ability to identify vehicle characteristics Deep learning and artificial intelligence (AI) seem to be taking a lower profile at this show, perhaps signaling the end of the hype. Companies that mention AI point to specific products that use the technology and are currently available. For example, Panasonic is featuring its FacePRO AI-based facial recognition system. The system uses face images captured from video — grabbing up to 30 to 35 faces a second as video is recorded. The system saves the best of those face images, eliminating extensive duplication, as thumbnails, which are linked to the video footage where the faces appear. To find video in which a face appears, the operator merely drags-and-drops the thumbnail image and commands the system to “go fetch” video that contains that face. The system then produces a timeline showing where the face appears in the feed from each video camera on the premises, so an operator can track the movements of a suspect throughout a facility. The tool helps to simplify and shorten the workflow of locating a suspect in real-time and is affordable for a wider range of uses beyond the traditional airports or high-end applications.  The FacePRO software is offered on any Panasonic camera, and works with a separate FacePRO server that is integrated with the video recorder. The system can be added easily to existing systems and is useful for such applications as real-time searches for terror suspects or other criminals throughout a location. Panasonic is also looking to apply AI-based capabilities to vehicle recognition, too, in the near future, with the ability to identify vehicle characteristics such as color, type of vehicle and direction of travel. On the VMS side, Panasonic is transitioning its Video Insight software to a modular approach, tailoring solutions for a growing range of vertical markets, such as transportation and retail, all using “plug-ins” that enhance operation of Video Insight software. No additional license fees are involved That’s just a sampling of what I saw on Day 2 of the show. I have more to share in a final show report, including what I see tomorrow on the final (shortened) day.