Just these past few months, our industry has seen some of the most relevant news regarding acquisitions and mergers, an obvious outcome of the current economic state. Here's a brief recap on prominent acquisitions making headline across the board:
Effective January 20, 2010—Protection One, a national security installation and monitoring firm, has hired J. P. Morgan to provide advice on a possible sale of the company.
Effective January 20, 2010—Samsung Techwin America, Ridgefield Park, N.J., and GVI Security Solutions, Carrollton, Texas, are establishing a strategic partnership following news that the Samsung Techwin and Samsung Electronics Video Security Products businesses are being merged effective January 1, 2010, due to the acquisition of the Samsung Electronics Company's Video Security Products business by Samsung Techwin. Both the Techwin and Electronics names will be dropped for the surveillance product line and the company will go to market strictly as Samsung.
"This is very good news for our customers and the video surveillance market in the Americas," emphasizes Steve Walin, CEO of GVI. "It is only natural, therefore, that we enter into a strategic partnership with Samsung Techwin America, replicating a similar symbiotic relationship we had with Samsung Electronics. Our SAMSUNG | GVI Security name will change to SAMSUNG SECURITY."
Effective January 19, 2010—Tyco International, owners of the ADT business, is purchasing Broadview Security, formerly known as Brink's Home Security.
Effective January 12, 2010— Two network video surveillance industry pioneers are coming together. DVTel, Ridgefield Park, N.J., a leading provider of intelligent security solutions over IP networks, announced their decision to acquire ioimage, Denton, Texas, a leader in intelligent video appliances. The decision to acquire ioimage is central to DVTel’s on-going strategy to innovate end-to-end, IP-based physical security solutions.
Effective January 1, 2010—SecurNet, Atlanta, Ga., made a full transition and officially changed its name to ADS Security (ADS) after it was acquired by Nashville-based ADS on February 15th, 2008. SecurNet customers will have access to enhanced ADS services such as wireless monitoring and mobile messaging alerts, as well as to a new Web site, www.adssecurity.com, offering a customer portal with online bill pay in 2010.
Effective December 8, 2009—After first announcing the mutual definitive agreement in October 2009 for GVI Security Solutions, Inc., Carrollton, Texas, to be acquired and taken private by investment funds managed by GenNx360 Capital Partners, now, the two companies look forward to positive gains for the year ahead.
According to Steven Walin, chairman of GVI Security Solutions, provider of video security surveillance solutions featuring the Samsung Electronics line of products, GenNx360 Capital Partners will in essence be the ‘parent company’ of GVI.
“As a private company, GVI can focus on long term goals and objectives,” explained Walin. “Our new board will have significant experience and knowledge in the security industry. GenNx360 Capital Partners resources and expertise are a major asset for GVI and our customers.”
During the tender off period, an affiliate of GenNx360 Capital Partners, a private equity firm focused on sponsoring buyouts of middle-market industrial companies, offered to purchase for cash all of the withstanding shares of GVI common stock at a price of $0.38 per share, without interest and less any applicable withholding taxes for a total equity value of approximately $11.6 million. Now, the parties will complete a second-step merger in which any remaining shares of GVI common stock will be converted into the right to receive the same price per share paid in the tender offer.
GenNx360 Capital Partners will form a GVI Board of Directors that will be comprised of Lloyd Trotter, Steve Walin, Joe Restivo and 2 outside directors with security industry experience.
“GenNx has committed to leaving existing GVI management in place, thereby ensuring continuity of customer-service standards and practices so for the most part, not much will visibly change as public shareholders are replaced by the GenNx360 Capital Partners fund,” explained Walin. “However, as a result of having a financially strong and experienced partner, GVI and their customers, channel partners and suppliers will benefit. Investments in new, expanded and improved sales, marketing and service programs will be made that will enhance the value of doing business with GVI. The market will see the results beginning in 2010.”
According to Lloyd Trotter, a founder and managing partner at GenNx360 Capital Partners, they with GVI management are developing a multi-faceted strategic plan centered around growth that will leverage their abilities while working closely with Samsung.
“We know that GVI is a well-run company, with outstanding employees, customers and partners,” said Trotter. “We believe that with our experience and resources we can help the team be even better. GenNx360 Capital Partners will also make additional investments in the security industry that will be complimentary to GVI.”