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Allied Universal announces rebrand of Staff Pro to Allied Universal Event Services

Allied Universal, a security and facility services company in North America, recently announced the rebrand of Staff Pro to Allied Universal Event Services. Staff Pro was obtained through the company’s acquisition of U.S. Security Associates back in 2018. This new Allied Universal Event Services business is recognised as industry-leading crowd management, event staffing, and consulting company and now has a new logo, tagline, positioning, and web presence. In addition to offering experienced and trained professionals, managers and personnel to every type of venue and event imaginable, Allied Universal Event Services focusses on-site security and a comprehensive suite of advanced technology and risk management solutions. Backed by Allied Universal, this new brand is able to boast an expansive portfolio of industry-leading security solutions, expertise, and technological resources. Single-source solution for event security Allied Universal Event Services' is the pioneer within the entertainment industry “We took this opportunity to rethink how our event services brand should be positioned in the marketplace as a one-stop solution,” said Steve Claton, regional president-Southwest at Allied Universal Event Services. “We are proud to be ahead of the curve in a rapidly evolving industry, and Allied Universal Event Services will now illustrate just how far our company has come.” Through the combined capabilities of Allied Universal, the company's event services division is now a single-source solution for everything from temporary staffing, consulting and security for all events. Allied Universal Event Services' is the pioneer within the entertainment industry providing innovative and expert guest management solutions. In addition, the event services team has a successful formula for addressing convention and trade show's complex challenges from a security and staffing perspective. The Allied Universal Event Services logo encompasses the visual identity of the highly recognised corporate brand of Allied Universal. This new brand’s emphasis on providing a full suite of products and top-notch customer service to clients on a national scale is highlighted in the new tagline Preferred by Clients and Loved by Guests.

Allied Universal finalises the acquisition of U.S. Security Associates and its subsidiaries

Allied Universal, a security and facility services company, finalises its acquisition of U.S. Security Associates (USSA), 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. As a result of the acquisition, Allied Universal is now an organisation with approximate annual revenues of $7 billion and over 200,000 security professionals. The acquisition also increases Allied Universal’s national presence and customer service capabilities and enhances Allied Universal’s presence in Canada. It also expands its footprint to Central and Latin America and the United Kingdom. With this acquisition, Allied Universal enters the consulting and investigations business as well as event staffing, enhancing its unparalleled and comprehensive security offerings to its customer base throughout its service areas. Domestic operations “I look forward to working with the USSA team, which has evolved over the years as a leader in security. Together we will bring unprecedented value to all of our customers with an array of combined offerings and concepts,” said Steve Jones, Chief Executive Officer of Allied Universal. Richard Wyckoff, who previously served as President and Chief Executive Officer of USSA, will act as a consultant during the integration process. Transition of U.S. Security Associates’ domestic operations is expected to be completed by the second quarter of 2019.

Allied Universal acquires U.S. Security Associates

Allied Universal, global security and facility services company, announced that it has reached an agreement to acquire U.S. Security Associates (USSA) from Goldman Sachs Merchant Banking Division (GSMBD), further building on its position as a major global player in the security services industry. This transaction includes the acquisition of Andrews International, the global arm of USSA. USSA has operations in the United States and internationally, with revenues in excess of $1.5 billion and more than 50,000 employees Allied Universal takes over USSA Based in Roswell, Georgia, USSA has operations in the United States and internationally, with revenues in excess of $1.5 billion and more than 50,000 employees. This acquisition is expected to increase Allied Universal’s national presence and customer service capabilities and will also enhance Allied Universal’s presence in Canada, as well as expand its footprint to Central America and the United Kingdom. USSA also provides Allied Universal with a sizable consulting and investigative division and event staffing business, StaffPro. The combined organisation will provide unparalleled and comprehensive security solutions to its customer base around the globe. “I am excited to welcome the USSA team to the Allied Universal family,” said Steve Jones, Chief Executive Officer of Allied Universal. “USSA has evolved into one of the leaders in the security industry over the years and provides a unique suite of security solutions to a wide array of clients across industry verticals. This transaction aligns with our long-term growth strategy of acquiring scalable businesses with significant potential when combined with the Allied Universal platform. I look forward to collaborating with the USSA team to maximize the value that together we will bring to our customers and in identifying new ideas in the security space,” said Jones. Allied-USSA business integration The transaction further bolsters Allied Universal’s position as a leading provider of security officer services" Richard Wyckoff, President and Chief Executive Officer of USSA, praised his team and embraces the partnership. “This merger with Allied Universal is a testament to the hard work and dedication of the men and women of USSA. We have focused on world-class customer service by providing innovative manpower and technological solutions to our clients. The industry has taken notice. I am very proud of what our team has accomplished and very excited that integrating our business with another industry leader will mean more growth opportunities and career advancement potential for our associates,” said Wyckoff. “This transaction further bolsters Allied Universal’s position as a leading provider of security officer services. We have been proud to support the Allied Universal team as they have grown the business organically and through strategic and transformative acquisitions such as this one,” said Chandler Joel Reedy, Managing Director of Warburg Pincus, a principal shareholder of Allied Universal. “We are excited to combine USSA with Allied Universal, which has a large and diverse portfolio of customers both in the U.S and internationally. Allied Universal will be exceptionally well positioned to continue to deliver unmatched service to its thousands of clients.” As one of the two principal shareholders of Allied Universal, Wendel is supporting the company’s continued growth as the industry continues to evolve" Wendel North America Wendel North America CEO David Darmon said, “As one of the two principal shareholders of Allied Universal, Wendel is supporting the company’s continued growth as the industry continues to evolve. This is consistent with our original investment thesis and we think will further enhance the company’s leadership position.” The transaction is expected to close by late third quarter of 2018, subject to customary regulatory approvals. Financial advisors to Allied Universal for the transaction included Barclays, Citi, Credit Suisse, Deutsche Bank, HSBC, Moelis, Morgan Stanley and Societe Generale. Cleary Gottlieb Steen & Hamilton LLP provided legal counsel to Allied Universal. Financial advisors to U.S. Security Associates included Goldman Sachs and KeyBank. Fried, Frank, Harris, Shriver & Jacobson LLP provided legal counsel to U.S. Security Associates. Terms of the deal were not disclosed.

Insights & Opinions from thought leaders at U.S. Security Associates, Inc.

Top ten security industry mergers and acquisitions of 2018

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.)

ISCON Imaging’s IR technology addresses shrinkage at distribution centres

Most of us think of shrinkage in the context of the retail environment, where a host of video cameras, tamper-proof packaging, sensors and other technologies help control theft by customers and employees. However, the term shrinkage also applies to goods before they get to a retail store. Goods can be stolen at any stage of their manufacture and distribution, usually by employees, and there are fewer technology solutions geared toward theft along the supply chain. In fact, some distribution centres, even those operated by major players in the business, have no technology at the exits to screen employees and detect theft. Loss prevention personnel have to rely on their ability to detect “lumps and bumps” as the only deterrent. Detection of infrared (IR) heat signatures Providing a technology solution for this market is ISCON Imaging, which applies detection of infrared (IR) heat signatures to address the problem of shrinkage in manufacture and distribution centres. The technology, which comes in the form of a full body scanner or a handheld device (about the size of a metal detector), senses the temperature of an employee’s clothing and highlights any difference in temperature that might be caused by an object – such as a stolen cell phone – hidden under clothing. Because the system only detects the surface of clothing, there are no privacy issues. The system also uses a low-velocity heated airflow that destabilises temperatures and makes objects more visible (even if they have been hidden long enough for their temperature to be “normalised.”) "It’s a greenfield market, and a great fit for our technology, given the challenges and benefits an employee screening situation entails" The IR camera creates a high-resolution black-and-white image, which is transmitted to a fully automated screen that allows operators to zoom in and out (using their fingers, as with an iPhone), to add a time and date stamp, to tie the image to an employee’s ID card, and/or to save it for possible prosecution. It’s a novel application of IR detection technology, which is mostly used at a distance to determine the heat signatures of bad guys hiding in the jungle, for example. Refocus on B-to-B sales to distribution centres Begun as a startup in the aviation market, ISCON Imaging found it difficult to compete against large manufacturers selling to the government (TSA), and the technology is not as well suited to really high-volume screening like at airports. In the last couple of years, the company has been refocusing on B-to-B sales to distribution centres, which have needed such a solution to address their shrinkage problems. “It’s a greenfield market, and a great fit for our technology, given the challenges and benefits an employee screening situation entails,” says Bill Gately, ISCON Imaging's CEO. “I’m a big believer in focus, and we will focus on this before we get into other markets.” Because technology is new to the market, ISCON Imaging often helps end user customers implement their concepts of operation. “We do a lot to help them with equipment layout,” says Gately. Currently, the company targets the hundreds of large distribution centres in the United States – and the many more that are coming online in our age of Internet commerce. A differentiating factor of the technology is that it can identify the object being hidden. In contrast, a metal detector with a light and/or audible alarm only detects if an object is present – yes or no, but no additional information about what the object is. (The object also has to be metal; it can’t detect clothing, pharmaceuticals, and other items likely to be stolen.) Also, some other scanning technologies only show a “square” indicating a foreign object, rather than an actual image of the object. With little information to work with, loss prevention personnel either have to interrogate the offender or get them to agree to be searched. In addition to uses at entrance/exits, the hand-held units can be used to perform random security checks, for instance in a high-theft or high-value area of a distribution centre. “The reason we don’t have any health issues is that the camera is passive – it just looks at the heat your body is generating,” says Gately. “The only thing coming from the machine to you is hot air.” The system is so precise that it can detect even small objects like thumb drives and SIM cards that metal detectors cannot find. Employee safety "ISCON Imaging is “being dragged into” the workplace safety market because of the urgent need for screening technologies" The ISCON Imaging system also contributes to employee safety. Employees are screened when they come to work each day (to ensure they aren’t bringing weapons into the workplace, for instance), and again when they leave at the end of the day (to detect any stolen objects). If a weapon is detected, an operator can escalate a silent alarm to respond to the situation with a lockdown or other strategy. In fact, the radiation-free and non-intrusive personnel inspection system can help prevent workplace violence, an issue that can lead to liability lawsuits for employers. “Most companies aren’t screening employees on the way in,” says Gately. “That’s an area I think will drive this whole security movement very quickly.” Proliferation of active shooter drills, for example, is raising awareness among top management of the possible liability consequences of failing to prevent workplace violence. For instance, U.S. Security Associates recently paid a $46 judgment for failure to protect two Kraft employees who were shot and killed at work. Gately says “ISCON Imaging is “being dragged into” the workplace safety market because of the urgent need for screening technologies.”

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