ADT Inc., SDM’s 2017 Dealer of the Year, announced it has entered into a definitive agreement to acquire Boca Raton, Fla.-based Red Hawk Fire & Security, a commercial fire, life safety and security services and portfolio company of Comvest Partners, for $317.5 million in cash.
This transaction accelerates ADT’s growth in the commercial security market and expands the company’s product portfolio with the introduction of commercial fire safety related solutions. It is the latest in a series of acquisitions made over the last year to drive commercial growth and build on ADT’s foundation of customer service. Revenues from the combined company’s business customers are expected to represent approximately 25 percent of total revenue.
Red Hawk works in the design, installation, integration, monitoring and servicing of commercial fire, security and life safety solutions. Red Hawk represents one of the few last independent large national commercial integrators, offering mission-critical solutions across its 45 district locations, and is expected to generate approximately $300 million of revenues in 2018. In recent years, Red Hawk has demonstrated double-digit revenue growth across a diverse set of customers, markets and geographies.
“Commercial security is one of the core pillars of ADT’s growth strategy and today’s announcement marks a significant step in our concerted efforts to expand our commercial business with the critical capabilities and services that our customers expect,” said ADT President and incoming CEO Jim DeVries. “Red Hawk’s exceptional portfolio of commercial fire and security solutions complements ADT’s existing commercial business, positioning us to provide a superior customer experience at a local and national level. We are excited to welcome the talented and experienced Red Hawk team to the ADT family while expanding our geographic reach, service capabilities and product offerings. Having long admired Red Hawk, we are confident that combining the strengths of our two companies will allow us to deliver increased value to our customers and shareholders.”
“We are delighted to join a company with ADT’s resources, growth potential and shared commitment to providing high quality customer service and innovative solutions to customers,” said Red Hawk President and CEO Michael McWilliams. “We look forward to our future with ADT, which we are confident will help us to achieve our next phase of growth.”
“It was a rewarding and collaborative experience working with Michael McWilliams, Mark Foley, Red Hawk’s CFO, and the other members of Red Hawk’s senior management team to build Red Hawk into a market leader from our original acquisition, and Red Hawk is positioned to continue to thrive under ADT’s leadership,” said Roger Marrero, the Managing Partner of Comvest Partners.