Security Sales & Integration February 2022 - 25

acquisition company (SPAC) on the NYSE,
valuing the company at $927 million. The
company has developed a collective defense
solution that delivers machine-speed visibility
of potential threat campaigns targeting
participating industry peers, as well as a suite
of technologies providing real-time threat
monitoring and analytics. SSI
THOMAS MCCONNELL is a Managing
Director of investment banking firm
Capstone Headwaters where he focuses
on mergers, acquisitions and capital
raise transactions in the physical and
cybersecurity industries. PATRICK
HASHMALL serves as an M&A Associate at
the company.
SMART HOME STOCKS GAIN 20% IN 2021
PUBLICLY TRADED companies
engaged in the smart
home market finished with
another strong year in 2021 in
which the average smart home
stock price rose a solid 20.1%.
The 2021 growth in the CE Pro
Smart Home Stock Index was
led primarily by companies
engaged in the security space,
likely driven up by high demand
due to increased crime
rates across the nation. (CE
Pro is an SSI sister publication.)
The top smart home stock
growth companies were:
▶ Allterco (up 254%)
▶ Napco Security (up 91%)
▶ Johnson Controls, owners
of brands such as DSC,
Simplex, Tyco, Kantech,
Visonic, Exacq, Sensormatic,
American Dynamics
and others (up 75%)
▶ Wesco, parent company
of distributor Anixter (up
68%)
▶ Alphabet, parent of Google
and Nest (up 65%).
Overall, 31 companies had
stock gains in 2021, while 19
saw their stock fall. That is a
much more mixed bag than
has occurred over the past
two year. In 2020, only 16
companies had stock price
decreases and in 2019 there
were just eight companies
with lower share prices.
The 20% smart home
stock growth rate in 2021 is
on par with the overall stock
market. The smart home
stock index has now risen
for three consecutive years.
The 2021 gain of 20% was
preceded by a 34.5% gain
in 2020 and a 19% increase
in 2019. The last year smart
home stocks fell overall was
in 2018 when they were
cumulatively down 19%.
The list of publicly held companies
is dynamic with some
new companies added and
others dropped as companies
buy into the smart home
space, sell their smart home
assets or diminish their role in
the market. For 2021, the CE
Pro Smart Home Stock Index
includes 50 companies. Among
the additions this year are:
▶ European brand Allterco
Robotics and its Shelly smart
home brand were added as
the company entered the
U.S. market. The company
has been on the Bulgarian
stock exchange for years and
debuted as a public company
on the Frankfurt exchange in
November 2021.
▶ Security giant ASSA
ABLOY, based in Sweden, and
parent of key brands such as
HID Corp., August, Life Safety
Power, Medeco, Sargent,
Securitron and many others,
is now being tracked due to
its acquisition of smart door
lock makers Yale, Kwikset and
Baldwin.
▶ Snap One, makers of 20
market-leading brands in the
smart home space from the
CE Pro 100 Brand Analysis,
went public on July 28. The
company saw its stock rise
30% since that IPO.
▶ Synnex, the nationwide
distributor, purchased Tech
Data in 2021 to strengthen its
position in the pro AV space.
▶ Tuya, the global IoT
platform developer that now
has more than 100 million
devices worldwide using its
framework, debuted as public
stock last March.
Among the companies
dropped from the list are Office
Depot, Qualcomm, Stanley
Black & Decker, Intel, DSP
and Haier. As always, many of
the stock prices (rise or fall)
are not necessarily directly
reflective of the state of the
smart home market. Most of
the companies on the list are
highly diversified companies
engaged in multiple industries,
from automotive to commercial
security to elevators.
2021 Smart Home Stock
Big Winners, Losers
As noted, 30 stocks had
price gains in 2021. Of those,
26 had strong double-digit
securitysales.com
increases. That is down
from 32 companies that had
growth rates over 10% in
2020. Allterco Robotics was
the biggest gainer last year,
up a whopping 254%. The
company recently reported
51% Q4 sales growth, including
62% growth by its Shelly
brand of IoT devices.
Napco Security was a
big gainer last year, almost
doubling its stock price from
$26.22 per share to $49.98.
That gain was on the heels
of an 11% decline in Napco's
share price in 2020. Several
other companies that had
strong gains last year were
coming off poor years in 2020.
Belden, for example, rose 57%
in 2021 but was down 24% the
previous year. Canon, owners
of Axis Communications and
2N, rose 26% last year after
falling 29% in 2020.
On the losing side in 2021,
the biggest drop came from
Summit Wireless Technologies,
makers of the WiSA
high-definition wireless audio
standard. Last year the stock
fell 61% to $1.39 per share.
Other companies with big
drops in price were Philips
(-32%), IAC Interactive, parent
of ServiceMagic and HomeAdvisor.com
(-31%)
and TCL Holdings (-31%).
- Jason Knott
FEBRUARY 2022 Security Sales & Integration 25
http://www.meAdvisor.com http://www.securitysales.com
Security Sales & Integration February 2022

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