ADT Acquires DIY Home Security Company LifeShield
ADT hopes the addition of LifeShield’s technology will enhance its ability to reach U.S. households that don’t have professionally installed and monitored home security.
BOCA RATON, Fla. — After spending the past few years beefing up its cybersecurity and commercial divisions, it looks like ADT (NYSE: ADT) is now doing the same for its DIY sector with the acquisition of wireless security company LifeShield.
The addition of LifeShield’s technology to ADT’s security and automation solutions and expertise increases ADT’s ability to address the approximately 80% of U.S. households who do not have professionally installed and monitored home security, the company said in an announcement.
“As more consumers look for real protection solutions that only ADT can provide, we look for companies that share our passion for security, customer service, and innovation,” says ADT President and CEO Jim DeVries. “We are confident that LifeShield’s capabilities and approach, combined with the brand and scale of ADT, will create an opportunity for us to offer our services to a broader cross-section of U.S. households. Together with LifeShield we will be positioned to offer more solutions to a broader base of customers and create increased value for our shareholders as we seek to grow profitability through expanded, yet focused offerings.”
LifeShield CEO John Owens will continue in his current capacity. The transaction is valued at approximately $25 million.
“This combination unites the passion and commitment of two organizations that are focused on security,” says Mike Hagan, LifeShield Chairman, who will continue as an advisor. “Leveraging ADT’s significant experience integrating products, we look forward to working together to ensure a seamless transition and capitalize on the attractive market opportunities in the DIY segment. Together we will continue to advance our strategy to deliver the best security solutions to our customers at every stage of their lives.”
LifeShield spent last year adding a number of home automation products and capabilities to its lineup. As pro installation companies face increased competition from DIY security providers, this acquisition will give ADT the ability to offer pro services to those DIY customers.
Could pro security companies acquiring DIY companies be a new trend for 2019?
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