In this issue:
COPS Monitoring Expands its Reach in Maryland
AT&T, Verizon Take on Legislation at the State Level in 2013
IR to Spin Off Security Products Businesses
Distributor Holds to ‘Buy and Build’ Strategy
Z-Wave Interoperability Lab Celebrates First Anniversary
Inaugural SECURE+ Awards TBA at ESA Leadership Summit
New Program for Sports Venue Security Design
Burglary Rate Sees An Uptick, Crime Still Declining
ADS’s Mahler Retires
Companies You Should Know
Taking the Next Step to Success in 2013
Security News Briefs
COPS Monitoring Expands its Reach in Maryland
COPS Monitoring, Williamstown, N.J., a provider of wholesale alarm monitoring services, acquired AlarmWATCH, Hunt Valley, Md. With the addition of AlarmWATCH, COPS Monitoring gained between 135,000 and 150,000 subscriber accounts, said Jim McMullen, president and chief operating officer of COPS Monitoring. The company now provides services to more than 3,500 independent alarm dealers, who represent nearly 800,000 subscribers nationwide.
McMullen told SDM that the company is permanently on the lookout for quality companies to acquire. This will continue in 2013. In the case of the AlarmWATCH acquisition, the benefits to COPS came down to expanding its footprint into an area it did not do much business in and finding a company that already had a great reputation with its customers.
One of the advantages of acquiring a company that already does things well and takes good care of its customers is having the ability to take a close look and “learn from them and take best practices,” McMullen added.
But that goes both ways. McMullen related that AlarmWATCH had been dealing with some two-way voice challenges for several weeks. COPS’s New Jersey technical team worked with the Maryland team and was able to look at the issue and find the problem quickly.
“We believe that our companies are much stronger together than they were apart,” said Bob Lepczyk, president of AlarmWATCH. “Over the past 22 years, AlarmWATCH has been dedicated to providing alarm monitoring that exceeds our alarm dealers’ expectations. With 34 years of experience, leading-edge technology, and professional staff, I am certain that COPS Monitoring can bring even more resources and solutions to the table and help our dealers reach the next level.”
McMullen said that COPS is looking for 100 percent employee retention. The newly acquired accounts will be monitored from the Maryland central station with the existing AlarmWATCH employees. AlarmWATCH’s vice president of operations, Gail Schreiner, will stay on to manage that team. COPS Monitoring operates five other central stations in New Jersey, Florida, Arizona, Tennessee and Texas.
In the coming months, COPS will be carefully analyzing the Hunt Valley, Md., operations. Determinations to be made include the adoption of services and best practices in other facilities, whether the central station will continue to run on the same software platform or be changed to COPS’s proprietary automation software, and more. McMullen said that dealer feedback often plays a part in this stage of an acquisition.
“We’re excited about welcoming the AlarmWATCH dealers and employees to the COPS Monitoring family,” McMullen said. “AlarmWATCH has built a solid reputation for exceptional service. We’re looking forward to expanding on this by offering AlarmWATCH dealers the added reliability of multi-site monitoring and by introducing them to MPower, our advanced dealer access and alarm database management software as well as other services to help grow their business.” — By Sabrina Gasulla, Associate Editor
AT&T, Verizon Take on Legislation at the State Level in 2013
The Electronic Security Association (ESA) warned that there have been significant actions by state legislatures at the end of 2012 that should put ESA chapters, members and industry supporters on high alert as 2013 state legislative sessions begin. Most notably, AT&T is waging an intense lobbying effort in Michigan to create a separate licensing structure for security systems that is tilted in its favor — one that does not conform to standard industry requirements, such as background checks, training and others.
AT&T is lobbying to carve out a separate licensing scheme for security systems, and AT&T has “convinced” state legislators it has “new technology” that requires this change.
AT&T has indicated that its efforts will be repeated in other states. ESA learned that AT&T has supported pre-filing amendments to the newly passed Arizona licensing law.
Verizon is also active in state legislation, supporting deregulating Pennsylvania’s telephone industry. ESA expects other states to face similar challenges and urges all chapters to be vigilant.
ESA will address this issue at the 2013 ESA Leadership Summit, Feb. 18-21 in Orlando, Fla., including the Government Relations committee, the Board of Directors, and the Chartered Chapter meeting.
IR to Spin Off Security Products Businesses
Ingersoll Rand’s board of directors unanimously approved a plan to spin off its commercial and residential security products businesses, which will be combined to form a new global company.
The announcement came less than one year after Ingersoll Rand (IR), Davidson, N.C., sold its security integration business in a guarded transaction. The buyer, Kratos Defense & Security, reportedly paid $20 million for the integration business, but its public announcement of the acquisition did not name the company.
The separation of IR’s security products units will result in two standalone companies: Ingersoll Rand, a creator of comfortable, sustainable and efficient environments through its industrial, transport refrigeration, and heating, ventilation and air conditioning (HVAC) businesses; and the new security company, a global provider of electronic and mechanical security products and services, delivering comprehensive solutions to commercial and residential customers. Ingersoll Rand expects the spinoff, which is intended to be tax- free to shareholders, to be completed in approximately 12 months.
Michael Lamach, IR’s chairman and chief executive officer, said, “We believe the spinoff, which is the result of an in-depth review of strategic alternatives by our board and management, will allow both companies to enhance value by allocating capital and deploying resources in a more focused way, while preserving and increasing synergies within their businesses. At the same time, it will position the new security company to build scale and make the necessary investments for the future.”
Under the plan, IR’s existing commercial security business (currently known as the Security Technologies sector) will be combined with its residential security business (currently part of the Residential Solutions sector). This new company’s portfolio of brands will include Schlage, LCN, Von Duprin, Interflex, CISA, Briton, Bricard, BOCOM Systems, Dexter, Kryptonite, Falcon and Fusion Hardware Group.
The new company is expected to have annualized revenue of approximately $2 billion, based on 2011 revenues. The new security company is expected to generate strong free-cash flow and have the financial flexibility to take advantage of future growth opportunities.
According to IR, the new security company is also expected to have strong margins, as well as strong brand recognition and market-leading products and solutions, to set a solid foundation for future growth. The company will benefit from synergies in sourcing, technology, and assembly operations across the residential and commercial security markets. It also will have the opportunity to invest in key markets to take advantage of growing trends around increased security concerns, electronics connectivity, product life-cycle costs and rapid demand growth in emerging markets.
Execution of the transaction requires further work on structure, management, governance and other matters. Management is developing detailed plans for the board’s further consideration and approval. The leadership team of the new security company will be announced prior to the completion of the spinoff. Upon completion of the spinoff, the new security company will become an independent publicly traded company.
Distributor Holds to ‘Buy and Build’ Strategy
Tri-Ed / Northern Video Distribution, Woodbury, N.Y., acquired Security General International (SGI), a wholesale distributor of security and low-voltage products in the southwest United States.
Staying true to its “buy and build” growth strategy, Tri-Ed / Northern Video continues to expand its footprint in North America. The acquisition of SGI and its 13 branch locations established a presence for Tri-Ed / Northern Video in six new cities: Fort Worth and McAllen, Texas, Oklahoma City and Tulsa, Okla., Albuquerque, N.M., and Orange, Calif.
“We are very excited about our expansion in the Southwest market, and serving our growing customer base there,” noted Pat Comunale, Tri-Ed / Northern Video president and chief executive officer. “We welcome the entire SGI staff to the Tri-Ed / Northern Video team and look forward to meeting and exceeding the expectations of security professionals in our new locations.”
Z-Wave Interoperability Lab Celebrates First Anniversary
The Z-Wave Alliance, which oversees the world’s largest interoperable ecosystem for wireless home control products and services announced the one-year anniversary of its Interoperability Lab in Piscataway, N.J.
More than 700 products have been certified using the Z-Wave standard.
Z-Wave Interoperability Test Lab Manager Soren Blond Daugaard explained, “The lab is outfitted with movable test stands that can be used to simulate the most common types of construction and floor plans found in North American homes. Together with our library of Z-Wave products, this enables us to create a model of almost every conceivable network setup.”
Inaugural SECURE+ Awards TBA at ESA Leadership Summit
The Electronic Security Association (ESA) had its first open call for SECURE+ Award entries, which were accepted through December 2012 and were open to SECURE+ member companies. The awards will demonstrate how security systems with enhanced features have helped customers protect, control and connect their homes, families and businesses.
In its inaugural year, the awards program recognizes real-life examples of how qualifying SECURE+ members are making their customers’ lives not only safer and more secure, but simpler, more energy-efficient and more convenient. Winners will be announced at the ESA Leadership Summit, Feb. 18-21, 2013, in Orlando, Fla. in five SECURE+ categories:
- The Life Safety Award, showing how an integrated electronic security system with enhanced features has helped save a customer’s life or prevent a devastating loss.
- The Peace of Mind Award, recognizing the most dramatic use of an electronic security system using interactive or enhanced services and monitoring from remote devices combined with intrusion, fire and toxic gas detection.
- The Protect and Connect Award, exhibiting the best use of interactive services in an intrusion scenario including alarm activation during a robbery, burglary or break-in.
- The Sustainable Lifestyle Award, demonstrating the energy or resource conservation abilities of an integrated electronic security system with enhanced features.
- The SECURE+ I Love My Pet Award, acknowledging the best use of an electronic security system with enhanced features in caring for a beloved animal.
“This is an opportunity for SECURE+ companies to showcase the terrific job they are doing for customers needing security and who also want to use technology to connect and control every aspect of their busy lives. The awards are a compelling way to feature the enhanced and interactive services our members are providing to consumers and business owners across the country,” said Merlin Guilbeau, ESA executive director and chief executive officer.
For information, visit www.secureplusweb.org.
New Program for Sports Venue Security Design
NCS4 and SDM announced a new sports venue security design program called The Safety and Security Design and Construction Innovations (Innovations) program, which will include both an educational track and award, to debut at the NCS4 Annual Conference in July 2013.
The program will highlight excellence in system integration, architecture, engineering or construction (A/E/C) specifically related to the safety and security of spectators, property and infrastructure of spectator event facilities. The program will collect successful new construction and renovation projects that have had security and safety front and center in their planning and execution. The outcome will be a new educational track and award at the conference.
“A critical aspect of sports venue design is the forethought of the safety and security of all stakeholders including employees, fans and guests. The application of best practices and technology is a core element of successful security programs in our market. The Innovations program is a logical and exciting extension of our educational and recognition programs,” said Dr. Lou Marciani, executive director, NCS4.
From this outreach and submission program, all accepted submissions will be published and distributed at the Annual NCS4 Conference and on www.SDMmag.com. The conference will be held at Walt Disney World in Orlando, Fla. on July 16-18, 2013. Those chosen will become the new program track’s content at the NSC4 Conference by having those case studies presented. One submission will be selected as the best and named the first Golden Eagle Award recipient.
Laura Stepanek, editor of SDM, noted, “It is a privilege to partner with NCS4 and be involved in this exciting program. Many SDM subscriber companies are involved in the sports market. Their work on sports venues is innovative, hence the name of the new program.”
For information, visit https://www.ncs4.com/conference/awards.
Burglary Rate Sees An Uptick, Crime Still Declining
According to the 2011 edition of the FBI’s annual report Crime in the United States, part of the FBI’s Uniform Crime Reporting (UCR) program, that was released in Oct. 2012, the estimated number of property crimes in 2011 declined for the fifth consecutive year. Violent crimes also decreased, marking the ninth straight year that the collective estimates for these offenses declined.
While property crime, which includes burglary, larceny-theft and motor vehicle theft, decreased by 0.5 percent, the FBI found that estimated burglary offenses increased by 0.9 percent when compared with the 2010 estimate. This increase, however slight, marked the first year that burglary rates did not decrease since 2008. Burglary made up 24.1 percent of the estimated 9,063,173 property crimes committed in 2011. Both larceny-theft and motor vehicle theft declined.
These burglaries represent an estimated $4.8 billion in property losses suffered by their victims. The FBI estimated that the average dollar loss per burglary offense was $2,185.
The majority of reported burglaries involved forcible entry (60.6 percent) while 33.1 percent were unlawful entries (without force). Only 6.3 percent were failed forcible entry attempts. Without a marked change from 2010, residential burglaries accounted for 74.5 percent of all burglary offenses.
One of the noticeable changes in the nature of residential burglaries was that the number of burglaries that took place during the day increased by 4 percent (see chart below) while the number of nighttime residential burglaries decreased. A similar trend is observable in non-residential burglaries, with a marked decrease in nighttime burglaries.
In 2011, there were 18,233 city, county, university and college, state, tribal, and federal agencies that participated in the UCR Program. An interesting thing to note related the issue of law enforcement non-response to alarms is that the 14,633 law enforcement agencies that shared their staffing levels with the FBI reported that, as of Oct. 31, 2011, they collectively employed 698,460 sworn officers and 303,524 civilians, a rate of 3.4 employees for each 1,000 inhabitants. Their arrest rate for burglary was 95.6 per 100,000 inhabitants. — By Sabrina Gasulla, Associate Editor
ADS’s Mahler Retires
After 22 years with ADS Security (ADS), Nashville, Tenn., Mel Mahler announced his retirement and has stepped down as chairman and chief executive office (CEO). Mahler has assumed the role of chairman emeritus. John Cerasuolo, president and chief operating officer of the company since 2008, will assume the role of CEO, and also continue to serve as president. Bill Hunt, president of Elmhurst Corporation, the majority partner of ADS, will assume the role of chairman.
“I have valued my relationship with Bill Hunt and the Elmhurst group since we became partners in 1991,” Mahler said. “It is very unusual for an investment partner to stay committed to a relationship for that many years and they are more committed today than ever. It was a moment of faith when they joined me as a partner since I had a very short track record in the electronic security industry at that time. I am pleased with the accomplishments of the senior team at ADS and am proud of the fact that I was responsible for hiring each of them. John Cerasuolo is ready to assume the role of CEO. The company is in good hands.”
Cerasuolo expects to continue strategic acquisitions to grow ADS, which operates in seven states and 15 markets in the southeast United States. Advanced technology will also play a critical role in the company’s growth.
“Technology is changing the way we serve customers in the security industry and ADS is well-positioned for the future,” said Cerasuolo. “We will continue to acquire quality companies across the Southeast and introduce new technology. We expect 2012 to be a record year for revenue and growth.”
In conjunction with the leadership changes, the company also announced that it had increased its line of credit with Bank of America from $25 million to $40 million.
Companies You Should Know
Terminus Products Inc., Christiansburg, Va., brings to market intrusion detection products and systems that consistently safeguard people and property, even in the most merciless of environments.
Shock detection systems from Terminus provide perimeter and physical barrier intrusion protection, allowing the sensors to alert customers to entry attempts while the activity is taking place, warding off intruders before they can get inside. In addition to their shock sensor offerings, Terminus also manufactures power panels for integrated security systems and an advanced elevator control panel.
Though the Terminus company name is only six years old, the products have been manufactured and honed since the 1980s. Terminus products were then owned by Litton Poly-Scientific.
Since then, the product line went through several redesigns, said Robert Burleson, manager of Terminus. “From a single contact sensor to a dual contact,” Burleson explained. “The sensors are now sealed to the environment. And the circuit boards were redesigned to move from feed-through component boards to the new surface-mount component boards.”
In late 2006, Litton spun off the product line and Terminus Products Inc., owned by Seibold Security Inc., Rochester, N.Y., was born. Terminus’s Virginia headquarters counts four dedicated employees that make and continue to support the product line. Two of those employees do the majority of the manufacturing.
Yet the scope of the solution is large. Terminus products are used to defend high-security locations around the globe and provide perimeter protection in application, spanning everything from residential security to businesses, financial institutions, correctional facilities, nuclear plants, mass transit hubs, and more.
Terminus remains committed to being a leading provider of early intrusion detection products, Burleson said. “We’re working on a new security processor that allows it to be connected through the network where you can configure the processes remotely and communicate with them remotely,” Burleson related, adding that ease of installation is a big focus for this development.
For information, visit www.terminusproducts.com. — By Sabrina Gasulla, Associate Editor
Taking the Next Step to Success in 2013
RS2 Technologies, LLC, Munster, Ind., a provider of access control systems, announced the details of its 2013 Dealer Conference, with a theme of “Take the Next Step to Success with RS2!” The conference will be held at the San Antonio Marriott Riverwalk Hotel in downtown San Antonio. As in previous years, the speaker for the event’s keynote luncheon will be Mark McCourt, group publisher of BNP Media’s Security Media Group, who will talk about the state of the security market in 2013 and will also discuss the challenges facing manufacturers, integrators and other industry stakeholders.
According to Dave Barnard, RS2’s director of dealer development, “This year’s conference will be a mix of some old and some very new features. In the ‘new’ category, we will be convening a pair of vertical market panels to discuss the specific challenges and opportunities of two of RS2’s key vertical markets. One will focus on the education market, while the other will focus on communications. Both panels will include end users from the market sector, integrators who work with those end users, and a few of our own RS2 sales managers, each of whom will bring his or her own unique perspective to the discussion. In the ‘tried and true’ category, we will once again include presentations and exhibits from our many sponsors, including ASSA ABLOY, Ingersoll Rand, Mercury Security, and many others.” Barnard added that BNP Media will serve as the conference’s official media sponsor.
RS2 will be demonstrating and conducting training on its new NExT Step network appliance, which provides users with an economical, reliable, and highly secure two-reader access control solution that requires no computer or software installation. It will also be demonstrating the Mobile Client feature of its Access It! Universal software, which allows users to manage their access control systems from mobile devices such as smart phones and tablets.
For information, call 877-682-3532 or contact your RS2 regional sales manager.
Security News Briefs
IndigoVision, Edison, N.J., added Paul Smith as senior vice president, United States, to its executive team. Smith comes with more than 10 years of experience managing sales teams in the IP video sector. The addition of Smith to the U.S. team follows on several new recruits to the IndigoVision North American sales and support team.
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DMP, Springfield, Mo., named David Gaskill as dealer development manager for the Northeast region, which includes Del., Md., southern N.J., and eastern Penn. He is responsible for developing new sales and providing on-going service to DMP authorized dealers throughout the region, helpi
