Burglar at your window? ADT wants you to be armed and calm with its alarms. The company provides products and services used for fire protection, access control, alarm monitoring, medical alert system monitoring, video surveillance, and intrusion detection. It divides its security operations across four disciplines: Residential Security (provides burglar, fire, carbon dioxide alarms), Small Business (intruder detection and cameras), ADT Pulse (allows users to access and control security systems remotely), and Home Health (emergency response in the case of medical emergencies). ADT was a unit of conglomerate Tyco International until late 2012, when it was spun-off as a publicly traded company.
The security services company has about 6.4 million commercial, residential, and government customers, as well as sales and service offices in some 200 locations throughout North America.
ADT's applications include intrusion and fire protection, closed circuit television (CCTV), access control, computer security, and electronic article surveillance. Its residential products and services include fire and carbon monoxide detection, alarm monitoring, remote operation products, and home connectivity. In 2010 the company unveiled its ADT Pulse remote system, which not only provides off-premise security control, but accesses lights and thermostats.
For the year ended September 2011, ADT generated $3.1 billion in revenue with operating income of $693 million. The company signs customers to multi-year contracts which include automatic renewal provisions. This allows it to have a sizable portion of recurring revenue, which for 2011 accounted for 89% of its total sales.
ADT's blueprint for growth entails expanding its Residential Security operations by increasing its ADT Pulse adoption rates and through acquisitions. Its North American commercial business expanded in spring 2011 with ADT's acquisition of California-based Proximex, which sells technology allowing for faster deployment of first responders for security operations. Proximex's technology allows for communication between physical security and IT departments. The acquisition also brought Proximex's flagship product Surveillint, a business logic engine that integrates new and existing security systems.
The company expanded significantly in 2010 through former parent Tyco's $2 billion purchase of Brinks Home Security (dba Broadview Security), which brought more than one million customers and 10 locations in Texas to ADT. Tyco combined Broadview with ADT; reformed under the ADT name, the combined company moved to take a leadership position in the North American residential and commercial security industry.
In order to simplify its holdings, Tyco International officially spun-off ADT in October 2012. – less