Subscribe to

Blogs

Linear-IEI deal goes final

 - 
Tuesday, October 9, 2007
I don't have a link to a release, as it was only emailed to me via Word file and I can't find anything official on the web, but Linear has now confirmed that the deal agreed to in May to acquire International Electronics, known as IEI, has been consummated. However, the release doesn't indicate whether the initial financial terms remained the same. Anyhoo, here's the relevant piece of the release, if you're interested: The Home Technology Group of Nortek, Inc., a group of home and commercial convenience and security electronics companies lead by Linear LLC, a wholly-owned subsidiary of Nortek, has made a move to significantly strengthen its presence in the access control industry with the purchase of International Electronics, Inc. IEI, headquartered in Canton (Boston area), MA. IEI has been in the security and controlled access systems business for over 30 years. The two companies have very much in common with their line offerings but very little actual product overlap. The IEI line ranges from its Door-Gard stand-alone and entry-level access control products to its flagship product, eMerge, a browser managed integrated security management system. Linear has traditionally been in access control for perimeter security, including telephone and gate entry. Linear Chairman Grant D. Rummell noted the opportunity for synergy arising from the complementary Linear and IEI product lines. “IEI is a market leader in access control stand alone keypads, locksets, and systems access control products and this will greatly broaden the over-all Linear offering,” he said. “At the same time,” Rummell pointed out, “IEI’s experience and innovation in the areas of access control software adds substantially to our systems depth.” IEI President and CEO John Waldstein stated: “We look forward to the added market presence the association with Linear affords us and the opportunity for growth it provides. Being part of a strong access control and security industry leader allows us to continue to broaden our access control offerings as well as continuing to assure our commitment to excellence in service and support.” Plans call for IEI to continue at its Canton, MA, facility and to maintain and expand the IEI brands. Don't they know that all we care about is what they paid for IEI?

Zebra Technologies buys proveo, Navis is next

 - 
Tuesday, October 9, 2007
If you're like me, when you think Zebra, you think printers, but the company is rapidly becoming much more than that, turning itself into a major player in the RFID market. This week, Zebra announced an intent to buy Navis, a California-based manufacturer of RFID solutions directed at the maritime market, having been the first to provide automated container terminal operating systems in 1988, which improve velocity and visibility of cargo movement. Considering the SAFE Port Act and its mandates, this seems like a wise investment of $145 million (to be paid in cash). Add this move to the 200 patents the company bought in the first part of this year, and a secondary announcement this week of the acquisition of proveo AG for $16.3 million, getting into the business of tracking ground service vehicles at airports, and Zebra is looking like a force in tracking important things in two rapidly growing large security verticals. Clearly a company to pay attention to. Trackings things as a service could provide a tidy RMR. Oh, and Zebra expects $60 million a year in revenue from Navis going forward.

A kinder, gentler Johnson Controls

 - 
Monday, October 8, 2007
Have you seen this new Johnson Controls logo? It looks like it was designed by the elves of Lothlorien. And I consider that a compliment. If they're going to work this enviro theme, they might as well have a warm and gentle logo that makes people think they're the green type right away. I mean, look at this old logo. What were they selling, Slinkies? I think more and more companies and municipalities are going to be attracted to Johnson Controls' holistic approach to building management, which encompasses everythign from HVAC to security. It's a pretty easy sell when you guarantee by contract that your client will be able to pay for new security systems with the money saved on energy costs. I'd link to the full story, but JC uses a frame set I can't link directly to, so here's the first paragraph of the deal they made with a city and county in Montana: The City of Laurel has recently completed, and Flathead County has recently begun making infrastructure improvements enabled by energy savings performance contracts with Johnson Controls, Inc. These projects benefit both businesses and residents by saving the city and county more than 25 percent of their existing energy budget. Johnson makes them think they're saving money, but really they're spending more money with Johnson Controls. Brilliant. Oh, and it's good for the earth and all that, too. Sweet.

Who's the mystery buyer?

 - 
Friday, October 5, 2007
Pure Technolgies, a publicly traded manufacturer based in Calgary, announced this week it intends to sell its video subsidiary, PureTech Systems, which landed a big contract with the Port of Halifax earlier this year. The buy, apparently is a U.S. company and the price tag is $3.25 million. Seems fairly cheap, really. But who's the buyer? Pure ain't saying: Pure didn't name the purchaser, but said it was an advanced sensing technology firm whose principal market is Homeland Security. That kind of sounds like iCx, I guess, but it could be anybody, really. What does "advanced sensing technology" mean, anyway? Analytics? Sweet motion detection? Chemical detection? Who knows? Anyway, since the deal apparently closed Oct. 1, why doesn't the purchaser want to be named? What's the big secret?

Bribery and private security

 - 
Thursday, October 4, 2007
I try not to get too much into the guarding market, except for when it overlaps with systems integrators and installers, but this is a crazy story. Many security firms work with the GSA, and it seems as though the GSA isn't always on the straight and narrow. Here's the nut graph: According to court papers filed in the case, [Michael] Holiday, a former Montgomery [Maryland] police officer, plied a government contracting official with $100,000 in cash and paid for her $7,000 Caribbean cruise. In exchange, prosecutors said, the General Services Administration employee granted favorable treatment in the bidding process to Holiday's company. Holiday's firm, Holiday International Security, went on to acquire $130 million in government contracts. Pretty good return on that $107,000 investment, no? Among the agencies that awarded contracts to Holiday International Security was the Social Security Administration, which continues to use guards from the renamed company at its Woodlawn headquarters and several other buildings in the Baltimore region, federal officials said. ... The Silver Spring company, which changed its name to USProtect when it was sold in May 2003, provides armed and unarmed security guards for 18 federal agencies at 120 installations in 32 states and territories. So, I'm guessing the company won't now lose all of its contracts. While the prosecutor called the case the largest government corruption case in Maryland history, it's not clear that you can really ascribe all $130 million in contracts to the bribery. Theoretically, Holiday/USProtect were really providing the services, so maybe it's only the amount of the bribe that should be evaluated. That's semantics, though. In general, I love it when real life is just like the movies: Prosecutors allege that the former GSA contracting official, Dessie Ruth Nelson, 65, of Oakland, Calif., received a shopping bag filled with $35,000 in cash and an envelope stuffed with $10,000 from Holiday, in addition to the cruise, among other benefits. In turn, between 2000 and 2003, Nelson steered millions of dollars worth of contracts to Holiday's company, federal authorities charged. I mean, where did that happen? In her office? In a shopping mall parking lot? Did Holiday just waltz into the GSA with $35,000 in a shopping bag and hand it over like he had just picked something up at the grocery store for her? Oh, and I can't believe this paragraph was left for last: In addition to the bribery and tax charge, Holiday also admitted as part of his guilty plea that in April 2004, he sent a video file depicting a young girl engaging in sex with an adult male to an undercover FBI agent in New York. He could be sentenced to a maximum of 15 years in prison for bribery and 20 years for transporting child pornography. Holy smokes! So, the guy's involved with Maryland's largest-ever corruption case AND he's into kiddie porn? Does anybody else feel like this is bad PR for the private security marketplace? Wow.

Stanley Works to buy OSI Security Devices

 - 
Wednesday, October 3, 2007
In a deal that's been long rumored, Stanley Works announced it has entered into a definitive agreement to buy OSI Security Devices, make of Omnilock, for an unannounced sum. Things are very vague all around. According to a press release received at our offices, but posted nowhere else on the Web (otherwise I'd link to it), this was announced Sept. 25, and it was through one of Stanley's subsidiaries. Which one is unclear. Through Mullen PR, Stanley's agency, both parties have expressed zero desire to talk about the deal. "The OSI Security Devices acquisition will enable Stanley to provide a complementary offering to customers and OEM partners," said Philip Bradney, VP of BD, in the release. "It will enable us to offer a full solution, from mechanical to online security." Stanley Works couldn't do that before? Shows how much I know. I'm sure they'll both talk more after the deal goes final. One thing I'll definitely be looking into: The press release quotes OSI CEO Dick Rasmussen, and the web site mentions a Rick Rasmussen, as VP of sales and marketing. Now, are they the same guy? Father/son? Or could they be brothers both named Richard, like in the Bob Newhart show, where Larry had a brother Darryl, and another brother Darryl?

3Q earnings round up

 - 
Tuesday, October 2, 2007
With a number of security firms posting earnings lately, I thought a Friday round-up might be interesting: • L1's business is finally rolling like they've promised. These strike me as particularly positive developments: Revenue for the third quarter of 2007 was $115.5 million compared to $39.8 million in the third quarter of 2006, an increase of $75.7 million or 190 percent. The Company had impressive organic growth of 32 percent for the quarter. The Company’s net income in the third quarter amounted to $1.5 million, or $0.02 per diluted share, compared to a net loss of $29.3 million, or $0.66 per diluted share, in the third quarter of 2006, which included asset impairments and merger-related charges of $22.8 million. It's certainly always better to make $2 million rather than lose $29 million. • Stanley's security segment sales are up 24 percent • UTC Fire & Security's organic revenue growth in the quarter was 4%, led by Lenel, the security businesses in the Americas, and Asia. • Honeywell's income is up 14 percent, but see these paragraphs: "People might be concerned whether there is the margin potential in ACS that the company has intimated," he said. The ACS business, representing nearly 40% of Honeywell's quarterly revenue, provides technology and services to improve efficiency in manufacturing and home and building climates, as well as provides products for security and fire detection. • Brink's third-quarter revenue was $817.0 million, up 15.2% (10% on a constant currency basis) from $709.5 million in the third quarter of 2006. Operating profit increased to $60.5 million, up 11.2 % from $54.4 million in the year- ago period. • Ingersoll Rand'srevenues from continuing operations for the first nine months of 2007 have increased approximately 9 % compared with the same period of 2006, and remember that: The Company's Bobcat, Utility Equipment, Attachments and Road Development business units are now being reported as discontinued operations. It's still a good time to be a security company, but not as good as it has been.

One last thing about ASIS

 - 
Tuesday, October 2, 2007
Sorry, I wasn't going to post on ASIS again, but a friend sent me this photo and I just couldn't help myself. Seriously, who was the drone that a: thought L. would be the name by which I'd like to be addressed, and b: mis-spelled "Samual"? Really, Samual? I mean, the name is only about 2,500 years old. You'd think people might be acquainted with it. But that's neither here nor there - people make typos. The big, giant, overarching question is this: Were they retyping the information submitted electronically via the web site? Have they not heard of cut and paste, or, say, a SQL server? Isn't this supposed to be a high-tech industry? Still, I shouldn't complain. It was quite the conversation starter: "So, L., are you having a good show?"

Getting home

 - 
Sunday, September 30, 2007
Normally, I'm a big fan of Jet Blue. I mean, who doesn't like to be able to watch football games in-flight on DirectTV? But getting home from ASIS on Thursday was an adventure. First, the plane was delayed out of Vegas. Rumors are that Dick Cheney was coming into town, and that disrupts everything. Then, when we get to JFK, the Blue tells 14 of us that we've missed the last flight up to Portland, so tough noogies. Sweet. Luckily, the regional rep for DSX not only was down with the plan to fly to Boston instead and drive up, but his fiancee actually drove down from Portland to pick us up. Completely cool. The result? I walked in the door at 4 a.m. I'm sure everybody coming back east had similar experiences. What a kick in the teeth. Anyway, I've got to say that ASIS really seemed to be hopping this year. Partnerships were being announced every minute. Analytics companies were slandering each other like there was no tomorrow. I'd love to hear which company you think has the best analytic bang for the buck. I sure had my head spinning listening to all the claims, most of which seemed to be backed up with little red and yellow boxes dancing across screens. Gotta say, Cernium did a nice job on that front, but ObjectVideo was in every booth, it seemed. How much business was done in Vegas? It's hard to say, obviously, but the aisles seemed busy and the front of the hall at times was very crowded. Those guys back in row 100? They might have been less than pleased with the flow. All in all, I think the show was worth my time and that those companies I did have a chance to speak with all took the opportunity seriously and had good stories to tell. There was very little smoke being blown, and that's as good a sign as any of a healthy industry. Now, back to work.

Fun with cool technology

 - 
Wednesday, September 26, 2007
Great morning for seeing innovators in the industry. 1. If you haven't seen Optellios before, and you're doing a lot of large perimeter work, you might want to check them out. Basically, they run fiber-optic cable along a fence line, either woven into the fence or buried underground, and then use the fiber as a sensor that can detect any vibration and tell you where it came from within about 10-20 feet. Plus, they've got the software that makes it so as soon as the alarm comes in, the PTZ points right at it. 2. Orsus now eschews the use of "command and control" and is going with "situation management," and they do seem to have some differentiators. First, they've got a cool feature where you can track the guard tours and make sure they check in where and when they're supposed to. Then, in real time, you get an alert when they're not where they're supposed to be. Second, they've got a function where you can run a class-room style debriefing that incorporates the video, notes, alerts, etc., that happened during an incident and break down how the response was handled and how it could have been handled better. That seems like something end users would want to do on a regular basis. 3. Everybody wants to work with Arecont right now. They don't have a lot of glitzy marketing, but people like their imaging and their price. 4. Tyco's Kantech brand has a new option for central stations who want to get into access control as a service. Developed for sister company ADT, they're now rolling it out for other centrals. It seems like a good way to drive that service revenue that everybody's looking for.

Pages