Insider News & Business: December 2013
The latest news from the Security industry for December 2013.
DTT, Los Angeles, increased its credit facility to $60 million through a round of funding led by Capital One. Capital One Bank served as the lead bank and agent in the transaction, and brought in CapitalSource to complete the funding. DTT is currently ranked No. 24 in SDM’s Top Systems Integrators Report, climbing from No. 34 in 2012.
Sam Naficy, president and chief executive officer of DTT told SDM that the capital will serve to accelerate the company’s growth in two new vertical markets it entered earlier this year: specialty (or small box) retail and convenience stores. The credit facility also will support the continued fast-paced growth of DTT’s core vertical: hospitality.
DTT delivers video analytics, loss prevention, business intelligence tools and the like through a proprietary cloud portal — MyDTT. “Our secret sauce is our ability to integrate video real time with point-of-sale analytics,” Naficy said. The company’s philosophy centers around encompassing all of the information needed to manage the business in one website vis-a-vis video, loss prevention, background checks of employees, case management for maybe a slip-and-fall or harassment claim, and more. DTT’s point-of-sale integration, business intelligence tools and analytics are proprietary tools the company developed in-house.
Naficy shared, “The capital will allow us to hire additional sales folks and additional installers. We’re probably going to double the sales department from about 80 today to about 150 this time next year.”
In August of this year, DTT opened a second office in Las Vegas to accommodate a significant increase in staff. When fully developed and staffed, the facility will employ approximately 500 people.
In addition to the synergies that exist between hospitality and specialty retail, such as location size, employees, point-of-sale terminals and others, Naficy commented that in specialty retail, DTT saw a very fragmented security market. “No one is really doing for these verticals what we’re doing as far as deliverables. There are a lot of hardware players that are selling cameras and a DVR, but no one really providing all the real-time analytics that we provide. We felt we could take those services we provided in hospitality and replicate it in these verticals through a shared services model.”
Naficy continued, “I am thankful to Capital One Bank for their continued support. They have served as our anchor in this transaction, and were able to bring in CapitalSource as part of the debt structure. These additional resources will help us to continue on our path to further growth.”
John Robuck, senior director, Security Finance, Capital One Bank, said, “We are pleased to support DTT as they bring their digital video surveillance solutions to new markets. This credit facility is a milestone for DTT, and we welcome the opportunity to partner with this industry leader as we continue to expand our commercial and specialty lending business nationwide.”
Robuck added, “Capital One became the primary lending relationship for DTT in 2012. They are a leading provider of intelligent video surveillance solutions, which is a growing and important sector of the security industry and of particular focus to Capital One. As evidenced by DTT’s impressive growth, we see abundant new business opportunities in the video surveillance sector.”
Will Schmidt, managing director of Security Lending Group at CapitalSource, said, “DTT has built an incredible platform and CapitalSource is pleased to support Sam and the company as they continue to expand the markets they serve.”
DTT was founded in 1999 by Naficy, leveraging the power of emerging digital technology to support the needs of a broad base of clientele. Since first launched, DTT has equipped, serviced and supported more than 30,000 clients. — By Sabrina Gasulla, Associate Editor
Jay Hauhn Discusses His Goals as CSAA’s New President
In October, Jay Hauhn, chief technology officer and vice president of industry relations at Tyco Integrated Security, was named the new president of the Central Station Alarm Association International. In a new podcast, Hauhn discusses two big projects he will take on as CSAA’s new president, the biggest challenges our industry faces in the monitoring space and how CSAA can help, cooperation among associations and more. Listen in at www.SDMmag.com/podcasts.
Safe Security Acquires 16,000 Accounts
SAFE Security, San Ramon, Calif., acquired from Alarm Funding Associates more than 16,000 CastleRock Security residential and commercial alarm monitoring subscriber accounts, representing approximately $650,000 of recurring monthly revenue (RMR).
“These accounts fit very nicely into our United States and Canada footprint,” said Paul Sargenti, SAFE’s president and chief executive officer who founded the company in 1988. “With this acquisition we have more than doubled our account base since 2012. We are well equipped to assimilate them and look forward to providing the highest standard in security services to these new subscribers.”
Sargenti commented, “The CastleRock Security acquisition highlights the beginning of SAFE’s 25th year in the security alarm industry. SAFE is firmly positioned as a full-service alarm company and this purchase complements our other growing revenue channels.”
The addition of this RMR to SAFE’s existing portfolio parallels the organic growth from its dealer program, SAFE Dealer Network.
Cory Mims, a managing director of ICV, said, “SAFE has completed several acquisitions that complement its organic growth and we continue to benefit from a robust pipeline of high-quality companies from which to select quality accounts. We are very pleased with the continued growth of SAFE. ICV will continue to support the management team as they build the company into a leading provider of security alarm monitoring services.”
Earlier this year, SAFE Security purchased 35,000 security alarm monitoring subscriber accounts from Utah-based Pinnacle Security, representing approximately $1.6 million of RMR. Additionally, the company successfully completed the refinancing of its senior credit facility with a new $130 million senior credit facility led by Bank of America to provide additional borrowing capacity for acquisitions. In addition to Bank of America, debt financing for the Alarm Funding transaction included U.S. Bank, Bank of Montreal, Madison Capital, and OneWest Bank.
Sargenti concluded, “Major operational changes in the past few years, combined with a steadfast management discipline have resulted in an intelligent growth and expansion potential that SAFE is well able to handle. We are grateful for the support given to us by our partners at ICV Capital Partners and our lender group led by the Bank of America and consisting of U.S. Bank, Bank of Montreal, Madison Capital, and One West Bank, for this and Pinnacle Security account acquisitions earlier this year.”
Per Mar Acquires 2 Indiana Companies
Per Mar Security purchased the assets of two Indiana security companies, Centech Security Systems Inc., of Valparaiso, Ind.; and S&L Services Inc., of Walkerton, Ind. The accounts will be serviced from the Per Mar branch office in Mishawaka, Ind.
Per Mar, headquartered in Davenport, Iowa, is a full-service security provider offering a full range of electronic security, fire alarms, monitoring services, guard service, investigations and employment screening. Per Mar also offers interactive systems and services to control alarm systems, heating and cooling systems, cameras and lighting from subscribers’ computers, smart phones, tablets or Web browsers — making its services ideal for today’s mobile lifestyles. Per Mar is in its 60th year of delivering service and security to customers throughout the Midwest.
Executives of both Centech and S&L Services were assisted by Steve Rubin of Davis Mergers and Acquisitions Group in the transactions.
Milestone Invests in Training
Milestone Systems, Beaverton, Ore., is purchasing all outstanding shares of the surveillance training, certification and consulting company Connex International, based out of Minneapolis. Milestone was already a majority stakeholder in Connex from an initial investment in July 2010.
For years the Connex teams have set up, managed and performed Milestone channel partner training in many languages with proven success across all regions. In recent years, Connex added rigorous certification testing and documentation of Milestone Solution Partner integrations with the XProtect® open platform, such as access control, analytics, geo-spatial positioning, video synopsis, 360-deg. camera view de-warping, network video storage and more.
Milestone is now fully investing in these dedicated resources, supporting the need for continued education in the physical security sector to further enable the trend from analog to IP technology.
“Our international ecosystem of competent distributors and resellers is key to the Milestone strategy for continued growth. To further accelerate, globalize and align our efforts to strengthen the training of this ecosystem, Milestone has decided to fully acquire and include Connex in the core of our business operations,” said Lars Thinggaard, president and chief executive officer, Milestone Systems.
The aim for the initial transition in the fourth quarter of 2013 will be to continue the existing training operations while building out the global capacity including plans for launching self-paced online certification courses for channel partners. In addition to the Milestone Knowledge Program, the professional consulting services provided by Connex to key Milestone partners will be incorporated into Milestone’s core business framework.
Partnership Promotes Central Station Excellence
Bold Technologies and the Central Station Alarm Association will continue their partnership on the CSAA Five Diamond Program. For the past four years, Bold Technologies provided a sponsorship program for central stations that wish to seek Five Diamond Certification.
The CSAA Five Diamond Program is a balanced certification program and has become the gold standard for central station excellence. The CSAA Five Diamond program was founded on the following five principles:
- Commitment to random inspections and quality criteria standards by a nationally recognized third party such as FM, Intertek (ETL), or UL
- Commitment to highest central station levels
- Commitment to ongoing job-related training
- Commitment to raising industry standards through CSAA Membership and participation in its activities
- Commitment to reducing false dispatches
To become a CSAA Five Diamond certified central station, every operator must complete the CSAA Central Station Operator Level I Online course.
For central stations that purchase Manitou and would like to obtain their Five Diamond Certification, Bold Technologies will pay for each operator to take the CSAA Operator Level I course. Chuck Speck, vice president of Bold Technologies commented, “Bold is dedicated to advocating the betterment of the industry and we can think of no better way to do that than by supporting central stations’ continuing education and industry involvement.”
Speck continued, “We are proud to partner with the CSAA for this sponsorship program. Our Manitou software and the CSAA Five Diamond Program is a winning combination of innovative technology and professional development so alarm companies can achieve higher levels of performance and productivity.”
For information, visit www.boldgroup.com/partners/CSAA/FiveDiamond or contact Chuck Speck at 1-800-255-BOLD.
Sonitrol Assists Police in Apprehension Every 111 Minutes
Sonitrol, Orlando, Fla., reached a milestone by assisting in its 170,000th documented apprehension since 1977, when the company began documenting apprehension statistics. According to Sonitrol, the company’s record of success in assisting law enforcement in the apprehension of intruders is attributed to the nearly 50 years of dedication and advancement of the company’s unique, impact-activated, audio intrusion detection technology. Sonitrol provides businesses and homeowners with 100 percent volumetric wall-to-wall, floor-to-ceiling protection — monitored and verified in real-time — allowing for a quicker response by law enforcement.
The 170,000 documented apprehensions over the last 36 years — or approximately one apprehension every 111 minutes — is a result of a mutually beneficial relationship between local law enforcement agencies around the country and Sonitrol’s professionally trained operators.
Robert Stack, assistant chief of police, Lexington, Ky., said, “The audio verification provides us the ability to respond more quickly and tactically to an in-progress break-in. Any time we have real-time information, it affects how fast an officer responds and how they approach the situation. And, as far as officer safety is concerned, it makes a huge difference.”
Bruce Winner, director of the Sonitrol brand, added, “Sonitrol is extremely proud of its track record, and we think the apprehension statistics speak for themselves. It’s one thing to have video surveillance and remote monitoring on your phone or tablet, and we do that, but with Sonitrol you have a live, professionally trained operator monitoring your facility 24-7, ready to listen-in when your system is armed.
SIA Leaders Receive Awards at ISC East
Distinguished members of the Security Industry Association (SIA), Silver Spring, Md., received awards during the SIA annual membership meeting at the ISC East exposition.
The 2013 award honorees included:
- Rob Zivney, senior consultant at Identification Technology Partners, 2103 Chairman’s Award for years of dedication to identity management for SIA.
- Laurie Aaron, executive vice president and chief marketing officer at Building Intelligence Inc, 2013 Chairman’s Award for helping to forge bonds with ASIS International, supporting SIA’s education interest group and recruiting SIA members.
- John Hunepohl, director of education for ASSA ABLOY Door Security Solutions, 2013 Committee Chair of the Year Award for his work as SIA education committee chair and his support of the Certified Security Project Manager® program, SIA’s efforts to launch a learning module system and other initiatives.
- Steve Van Till, president and chief executive officer of Brivo Systems, 2013 Volunteer of the Year Award for his support of SIA standards and advancement of the OSDP Access Control specification, availability as a panelist for SIA Education@ISC and Securing New Ground© and many other efforts.
AT&T Digital Life Exceeds Market Introduction Goal
AT&T announced that in November it launched Digital Life, its new security and home automation offering, in six new markets: Bridgeport, Colorado Springs, Memphis, Mobile, New Haven and Pensacola. AT&T Digital Life® seeks to makes customers’ lives easier by simplifying the management of their home, according to the company. Digital Life offers security, convenience and peace of mind, in a customizable and easy-to-use experience from smartphones, tablets or PCs, the company stated.
Digital Life ended the year having launched in 58 markets across the United States, eight more than its initial goal of 50 cities by 2014. Customers in these markets can receive a live demo and purchase Digital Life in company-owned retail stores.
With Digital Life, customers can use their existing home broadband provider and any wireless phone service.
Digital Life recently achieved the “CSAA Five Diamond Certification,” testifying that 100 percent of Digital Life central station operators have achieved proficiency and certification by passing the CSAA Central Station On-Line Operator Training Course.
For information, visit www.att.com/digitallife.
Digital Version of SIA Technology Insights Released
The digital version of SIA Technology Insights is now available on the Security Industry Association (SIA) website.
SIA Technology Insights provides vendor-neutral analyses of emerging security technologies from industry leaders. Produced with the end user in mind, the publication is intended to help chief security officers, security directors and others learn about technological developments and trends and identify possible security solutions for their enterprise.
The nine articles in the first edition include examinations of IP video, video analytics, securing a networked security system, privacy issues and other topics.
The digital version can be downloaded at www.securityindustry.org/techinsights.
Hard copies can still be obtained by contacting Ron Hawkins, SIA’s manager of member information and partnerships, at email@example.com.
ScanSource Conference Offers Fuel for the Mind, Business Growth
When heavy rains and massive flooding near Austin, Texas, in October threatened to cause ScanSource Inc. to cancel its partner conference outing to The Salt Lick, an open-pit venue, ScanSource brought The Salt Lick’s BBQ to the conference instead. A big Texas BBQ spread, games, a pistol shootout — even Armadillo races — were set up in the Hilton Austin Hotel’s ballroom for conference attendees to enjoy. Given the flooding situation, it was more than anyone expected — but that’s just the way ScanSource does things.
The company’s annual Partner Conference, themed “Fuel” this year, traditionally has supported its Point of Sale (POS) and Barcode business unit resellers. However, this year it was opened up to include physical security resellers. “This is really the first time a lot of our security partners have gotten exposure to the bigger ScanSource Inc., and so it’s great for them to see the size, scale and resources [of ScanSource] — and all of the different opportunities, services and tools, and the potential partnerships that are available to them,” described Tony Sorrentino, president of ScanSource Security. As one example, Sorrentino mentioned that some of ScanSource’s security customers and POS customers had met at the conference and agreed to swap leads or get involved with each others’ projects in the retail space. (See Editor Laura Stepanek’s live interview with Tony Sorrentino at www.SDMmag.com/video.)
“What makes us unique in this industry are centralized distribution, our knowledgeable sales reps, all of the resources that we have available, and the sheer size and scale of our company and the partnership opportunities,” he said.
Throughout the day-long conference, the approximately 500 attendees got to hear about many of these services, including two big ones: marketing and financial support. “A lot of people think, I can’t do this deal because it’s too big, or my credit is bad. Well, we have a lot of different vehicles to help them close opportunities,” Sorrentino explained.
During the conference the distributor introduced All-Access ScanSource, a program that opens new channels of access for real-time data integration, such as price and availability, the ability to create an order, and access to order status.
Other conference highlights
Christy Thompson described how the company has reorganized to take advantage of worldwide opportunities that are being driven by trends such as mobility/bring-your-own-device and managed services.
Greg Dixon spoke about how today’s economic pressures are changing the reseller’s business model. He mentioned that ScanSource recently signed a new vendor, Intelisys, whose dozens of cloud-based offerings could be sold by security integrators to their customers for RMR.
Keynote speaker Jeremy Gutsche, author of Exploiting the Chaos and founder of TrendHunter.com, stimulated the integrators to consider what they do and then describe it in seven words. Gutsche said that when someone asked Steve Jobs what Apple does, he said, “We make buttons on a screen look so good, you’ll want to lick them.” Gutsche’s presentation provided fuel for the mind at a conference packed with intelligent insight.
For more information about the conference, visit www.scansource.com/fuel.
Samsung Customer Appreciation Party Hits All the Right Notes
On September 25, during the ASIS 2013 show in Chicago, Samsung brought customers and partners together for a night of music and fun at the House of Blues. Frank DeFina, senior vice president Sales & Marketing Samsung Techwin America, joined local band, Crash Martini, on stage and treated the packed room to a few dazzling guitar solos. DeFina commented, “We were so pleased that we could spend some time with our valued end users, dealers, and distributors. The House of Blues was a perfect venue that allowed for great interaction as well as some excellent entertainment. We hope to establish this as a yearly event.” Check out more photos from the event at www.SDMmag.com/media.
The Industry Gets Social
SDM’s subscribers were asked: “Does your company currently have a presence on social media websites such as Facebook and Twitter?”
Security companies are finding that social media sites help them spread brand awareness, build customer affinity, and create their “business personality.” Nearly half of dealers and integrators who participated in SDM’s Subscriber Market Forecast Study indicated they have a social media presence. Among the non-users, two-thirds said they plan to use social media next year.
smartHOMECEDIA EXPO Grows in Denver, Will Return in 2014
CEDIA EXPO 2013 experienced positive gains in attendance, exhibitor participation, and training registrations. More than 470 exhibitors and 17,900 attendees from 84 countries participated in the 2013 event in Denver. Professional and overall attendance both grew by 6 percent while new exhibitor participation grew by 20 percent and first-time attendees increased by 50 percent year over year. CEDIA Training also experienced record growth with over 6300 course registrations representing a 50 percent participation increase, according to numbers released by The Custom Electronic Design & Installation Association (CEDIA), Indianapolis.
CEDIA EXPO 2013 was described as “phenomenal,” “energized,” and “exceeding expectations,” CEDIA reported.
Other show highlights included the Opening Keynote, presented by Nest CEO and founder Tony Fadell, the New Solutions Village, which provided a platform for new products to make their debut into the industry, Rookie Row, high performance audio rooms, and a dedicated Security Solutions area.
For 2014, CEDIA EXPO will return to Denver September 10-13, with the tradeshow floor open September 11-13.
Vector Security, Pittsburgh, Pa., promoted Steve White to corporate vice president of business development to further its focus on growth in the complete managed infrastructure and business intelligence space. He is responsible for overseeing the operations of Vector Intelligent Solutions, the holding company for IRG and managing the alignment of the organization with Vector Security growth initiatives and culture.
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Honeywell Security Group — Canada named JP Lapointe as its new general manager. He oversees the alignment of all activities related to Honeywell’s security products business in Canada. In his new role, he is responsible for managing the Canadian sales, marketing, technical and customer support teams.
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Napco Security Technologies Inc, Amityville, N.Y., announced Fred Villalba, as vice president of Napco North America Intrusion & Fire. Currently based in the southeast, Villalba is charged with Napco’s sales of intrusion and fire products, including all distribution channels, with a special focus on the company’s commercial systems platform and interactive residential services.
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ADI, a major distributor of electronic products for security, fire protection, telephony, and audio-video applications, now offers NuVo whole home audio systems, including both wired and IP based products, to ADI customers in the United States. Officials said the distribution agreement was effective immediately.