by Peter Kusnic
December 10, 2019
The $67.3 billion US private security services industry has seen a tremendous amount of consolidation in recent years. Market leaders from ADT to Allied Universal are rapidly buying up smaller concerns – and in some cases other large ones – either to grow their market share in a particular segment or to expand the range of services they offer. The result on the national market has been mixed – with big players getting bigger and small and midsized entities increasingly feeling the squeeze.
Taking a closer look at specific corporate actions, the potential effects can become clearer to gauge. Below, we examine three leading players highlighted in the new Freedonia Group study, Private Security Services in the US, and what their recent mergers and acquisitions could mean for the industry going forward.
Allied Universal’s $1 billion acquisition of US Security Associates – theretofore a market leader itself – was major news in 2018. It solidified the company’s status as the largest security services provider in the US and one of the most important players in the global market as well. With guarding services as its core business, US Security Associates was a fitting addition for Allied Universal, substantially expanding its human resources capacity.
However, broadening its reach in guarding isn’t the only facet of Allied Universal’s growth strategy. Since 2017, the company has purchased a number of additional companies that focus on other services like consulting, systems integration, and security monitoring. In particular, strengthening the firm’s position in technology services has been a hallmark of recent activity, including:
For the most part, ADT has focused its acquisition strategy on increasing its share of the US commercial security market, including the acquisitions of:
However, the company is also increasing its penetration of the smart home security market via strategic partnerships and acquisitions. For example:
A leading provider of security integration services, Convergint made a number of key acquisitions in recent years in order to both increase market share and gain technical expertise. Among Convergint’s major purchases were:
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These and other trends affecting the US and global security markets are explored in a series of by the Freedonia Group, including the following recently published titles:
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