ADT Splits in Two to Better Focus on Customer Segments
ADT Security Services will split into two organizations to focus on its key customer segments — residential and small business, and commercial — following the closing of its deal to acquire Broadview Security (formerly Brink’s Home Security), according to ADT Worldwide President Naren Gursahaney.
ADT North America Residential and Small Business will be led by John Koch, who has served as president of ADT North America since 2006. ADT North America Commercial will be led by John Kenning, who joined the company earlier this year as group vice president for commercial security in North America.
“The business models to serve our residential-small business customers and our commercial customers are very different. By operating as two organizations we believe we will be able to sharpen the focus on the unique aspects of our customers in these two segments who require specialized solutions and services,” Gursahaney said during a media conference call.
ADT’s mega deal to acquire Broadview closed on May 14. The combined residential and small business organization in North America will generate annual revenues exceeding $2.8 billion, with more than 85 percent of that recurring monthly revenue. The ADT commercial organization will generate about $2 billion in revenue. All told, Gursahaney said, “making them the largest businesses in the North American security industry.”
In discussing his new role, Kenning said ADT’s 2008 acquisition of Security Services & Technologies (SST) has now been fully integrated into ADT’s commercial business.
“That integration has given us the capability across North America to be a leader and continue to grow our [market] share as our customers are demanding more complex solutions,” said Kenning, who previously served as senior vice president, global accounts, for Toronto-based Nortel.
Going forward, Kenning said he will focus on how solutions are delivered to customers in various phases of the business, including consulting and risk assessment. “Then we are going to look at the design phase, project management, implementation, delivery, servicing and monitoring for each of those customers over the next few years.”
The senior leadership team for the new residential and small business organization will comprise eight individuals who will report to Koch, including three top managers from Broadview. Former Broadview CEO Bob Allen has agreed to stay on in a consulting role.
Koch said his teams are working to integrate a unified product and services portfolio, lead generation tools, advertising and other operations. He also emphasized training would be a focal point in order to better assimilate “our sales reps, customer care reps and the entire technical workforce.”
“All of us will be working very hard throughout the summer to help continue the integration of Broadview into ADT,” Koch said. “This will be a gradual transformation and we will continue to look like different companies for the next 100 days or so.”
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