Acquisitions Abound: How 3 Leading Private Security Service Providers Are Reshaping the US Market

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.

1. Allied Universal solidifies market-leading rank in guarding & diversifies range of services

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:

• Securadyne Systems, a security systems integration company, in April 2019
• Midstate Security, an electronic security and monitoring services company, in August 2019

2. ADT shifts toward commercial space & piggybacks on rapid growth of smart home security market

For the most part, ADT has focused its acquisition strategy on increasing its share of the US commercial security market, including the acquisitions of:

• Protec and MSE Corporate Security – both of which are commercial security systems integration firms – in late 2017
• Acme Security Systems, Aronson Security Group, and Red Hawk Fire & Security in 2018
• Advanced Cabling Systems, a provider of security systems integration and other services, in January 2019

However, the company is also increasing its penetration of the smart home security market via strategic partnerships and acquisitions. For example:

• In 2019, ADT acquired two security technology firms: LifeShield, a provider of advanced wireless home security systems and associated services, and I-View Now, which focuses on video alarm verification technology and services.
• In October 2017, ADT and Samsung introduced a smart home security system that integrates ADT devices – including safety and security alarms – with Samsung’s SmartThings IoT platform.

3. Convergint expands share of security integration services segment

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:

• Commercial Systems Group, a major player in commercial life safety and security alarms, in September 2018
• Firstline Security Integration, a provider of custom security integration services, in December 2018
• Security Solutions & Management, a security services integration firm with a particular focus on the military and government markets in addition to other commercial sectors like healthcare, in March 2019

Want to Learn More?

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:

• Private Security Services in the US
• Safety & Security Alarms in the US – Scheduled to be published in December
• Global Security Services
• Smart Home Security
• Electronic Security Products: US Market Forecasts