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May 7, 2014
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Think Protection

ADT Buys Protectron

There goes another one....

It's been announced that ADT, the 800-pound gorilla in the security world has acquired another major security company, Protectron for $500 million USD. A huge purchase for a company that needed a big buy.

Protectron is a Canadian home alarm company, located in Montreal but servicing all of Canada. They protect approximately 400,000 accounts from coast to coast and were the second largest home alarm company in the country (1st is ADT and 3rd is AlarmForce). They provide a standard home security system at a mid-level price, approximately $30/month for traditional monitoring and a few hundred up front for the system. A 3-year contract is required.

Protectron has been on the market for awhile, and ADT was a more than a happy buyer.

ADT is in an interesting position, as with the massive number of accounts ADT has, their organic growth through their direct sales and dealer programs isn't enough to overcome the attrition numbers. This makes them have to constantly acquire other alarm companies. With that said, Protectron was the perfect opportunity at a necessary time.

What's going to happen to Protectron after the acquisition is anyone's guess. ADT is saying they want to keep the Protectron brand alive. I'm not sure I believe this will be the case. ADT has a very strong brand, which Protectron did not, so it makes sense to just kill of Protectron and replace all existing lawn signs and stickers as soon as possible. The Protectron dealer program (contracts with dealers, etc) may prevent that from happening right away. Only time will tell.

For Protectron customers, they'll continue being serviced by Protectron for the time being. In future, though I'm sure they will transition to ADT, which may not be the best news for customers. I'm unaware if there's a clause in Protectron contracts saying if the company is acquired customers can get out of their contracts. I doubt that is the case, however, if customers do want to try then this is a valid time to look elsewhere.

The Canadian security landscape continues to change. We'll see what else 2014 has in store for us....