ADT Corporation (NYSE: ADT) provides monitored security systems, monitored life safety systems and building automation systems to homeowners and small- and medium-sized businesses throughout the United States and Canada. The company’s home security offerings include around-the-clock burglary and emergency monitoring services, real-time networked video solutions, and automated lighting and climate control capabilities. Additional security offerings for businesses include video surveillance, access control, and intrusion detection services. In the health and life safety category, ADT Corporation provides in-home and on-the-go emergency response services and remote health monitoring. ADT serves over 6 million customers, making it the largest monitored security and home automation company in North America.
ADT Goes Private, Then Public
On Feb. 16, 2016, ADT Corporation was acquired by private equity funds managed by then Apollo Global Management LLC, now incorporated (NYSE: APO). Since the company was bought, the security company saw a loss of $296 million on $3.2 billion in revenue during the first 9 months of 2017. On January 18, 2018, the company raised $1.47 billion in its US IPO, priced at $14 a share, well below Wall Street’s expectations of $17 to $19 per share. Other private security firms will surely be watching the early days of the ADT stock.
Stanley Convergent Security Solutions
Stanley Convergent Security Solutions, Inc. is a wholly-owned subsidiary of Stanley Black and Decker, Inc. (NYSE: SWK), an industrial and household tool manufacturer and security company. Stanley CSS provides a full range of monitored security solutions in the U.S., Canada and across Western Europe. A similar range of services is also marketed throughout Latin America under the Stanley Security Solutions brand. Stanley Black and Decker reported revenue of $492 billion in its 4Q 2020 financial statement for its security segment, which includes Stanley CSS and Mechanical Access Solutions, its access-control hardware business.
Stanley CSS designs and installs a full range of customizable security solutions for businesses and institutions of all sizes. It offers fire and intrusion monitoring services, managed access control solutions, video surveillance capabilities and a whole host of emergency response solutions. In the home security category, Stanley CSS offers burglary and emergency monitoring services with video surveillance options. Stanley CSS counts more than 300,000 commercial and residential customers in North America.
Vivint, Inc. is a smart-home technology company providing monitored security and home automation services to homeowners primarily in the U.S. and Canada. Vivint provides burglary and emergency monitoring services, including indoor and outdoor networked video surveillance capabilities. Its smart-home services include remote access control and remote climate and lighting control capabilities, as well as locally installed cloud storage solutions. Vivint is a wholly-owned subsidiary of the privately held holding company APX Group Holdings, Inc. It reported revenue of $332.5 million for 4Q 2020. At the close of the year, the company had more than 1.69 million subscribing customers.
Tyco International PLC (NYSE: TYC) is a global fire protection and security company, and it is the former corporate parent of ADT Corporation. ADT became an independent publicly-traded company after the completion of a 2012 spinoff from Tyco. As a result of the spinoff agreement, ADT Corporation owns the rights to the ADT brand in the U.S. and Canada, while Tyco holds the rights to its use in all other jurisdictions.
While Tyco has not competed in the home security market in North America since the ADT spinoff, it does compete against its former subsidiary in the business security market through it’s North American integrated solutions and services division. The operating unit designs, installs, and monitors integrated electronic security systems, and fire detection and suppression systems for business, institutional and governmental customers of all sizes. It offers security and emergency monitoring services, video surveillance services, access control solutions, and other related security services. The unit reported nearly $30 billion in sales in the fiscal year 2017.