Commercial Integrator + Security Sales Sept/Oct 2023 - 65

UP FRONT
IN DEPTH | NEWS | ANALYSIS
| RESEARCH | PEOPLE
ADT Selling Commercial Business
to Private Equity Firm GTCR for $1.6B
IN DEPTH
BOCA RATON, FLA.
- Smart home and
small business security giant ADT Inc. has
entered into a definitive agreement to sell
its commercial security, fire and life-safety
business unit to private equity firm GTCR
for $1.6 billion, subject to customary
purchase price adjustments.
GTCR is no stranger to the commercial
security industry, buying electronic security
alarm monitoring company Protection
1 in 2010 among its many transactions.
ADT Commercial was formed through
ADT's 2017 merger with Protection 1, a
prior GTCR investment. GTCR will partner
with former P1 executives Tim Whall, an
SSI Industry Hall of Famer, and Dan Bresingham
as part of thr ADT Commercial
acquisition.
" This transaction is mutually beneficial
for ADT and ADT Commercial, which will
benefit from GTCR's support and expertise,
positioning the business to continue
providing best-in-class solutions and
services to its customers, " says ADT President
and CEO Jim DeVries in the company
announcement. " We thank the entire ADT
Commercial team for their hard work and
look forward to seeing them grow. "
Bresingham, president of ADT Commercial,
says the unit " has been instrumental
over the last several years building
our commercial business success and
bringing a depth of value, experience and
knowledge to our customers.
" We are excited to partner with GTCR,
an organization that supports our mission
and shares our passion to build this
business to become the premier service
provider in the commercial security, fire
and life safety industry, " he says in the
announcement.
ADT sold its commercial security, fire and life-safety business unit to private equity
firm GTCR for $1.6 billion. The deal is expected to close in the fourth quarter of 2023.
The transaction has been approved by
ADT's board of directors and is expected to
close in the fourth quarter of 2023, subject
to customary conditions, including regulatory
approvals, according to the company
announcement.
" ADT Commercial has established itself
as an innovative leader in providing the
critical safety services that businesses
need to protect their day-to-day functionality, "
says David Donnini, managing
director and head of business & consumer
services at GTCR, in the announcement.
" We are very proud to once again
partner with the leadership team of ADT
Commercial to continue to invest in the
platform and deliver the solutions its
customers have come to expect, " he says.
" ADT has done a tremendous job in further
developing this segment in recent years
and we are excited to help drive the business
forward in its next chapter of growth. "
Industry Reaction to the Sale
Security industry consultant Peter Giacalone
says he saw this move coming for ADT.
" Based on the direction of the ADT marketing
in recent times, it appeared that
they may have focused on residential, " he
tells SSI. " Spinning the commercial business
off was a logical next move.
" Spinning it off the GTCR along with the
'A' team of [former ADT CEO] Tim Whall
and Dan Bresingham was a natural move.
They are world-class operators with an impeccable
reputation for excellence, " he says.
Alarm industry lawyer and SSI Industry
Hall of Famer Ken Kirschenbaum agrees
with Giacalone that this move was a long
time coming.
" From my perspective, ADT seems
to have concentrated its efforts on the
residential side, " he says. " I have not heard
from any clients who have competed
against ADT Commercial. "
Kirk MacDowell, president of MacGuard
Security Advisors, has faith in Whall and
Bresingham to lead the former ADT commercial
unit into the future.
" They have worked together and led
Protection One and they were a focused,
direct, and a well-meshed senior team
then and well see that same focus applied
to this new spinoff, " he says. SSI
Sept/Oct 2023 | Commercial Integrator+Security Sales & Integration
65
COURTESY ADT
Commercial Integrator + Security Sales Sept/Oct 2023

Table of Contents for the Digital Edition of Commercial Integrator + Security Sales Sept/Oct 2023
