Alarm.com to Acquire Two Business Units from Icontrol Networks
June 23, 2016 – Tysons, VA – (GLOBE NEWSWIRE) — Alarm.com Holdings, Inc. (ALRM), the leading platform solution for the connected home and business, today announced that it has entered into a definitive agreement to acquire two business units, Connect and Piper, from Icontrol Networks.
Connect, based in Redwood City, California, provides an interactive security and home automation platform that powers several service providers’ solutions including ADT Pulse® with over 1.6 million subscribers. Piper, based in Ottawa, Canada, designs, produces and sells a Wi-Fi-enabled video and home automation hub.
The market for Internet of Things (IoT) services for both residential and commercial applications is rapidly expanding. With a growing number of companies and new devices entering the category, technology will increasingly define the space and enable the more than 15 thousand independent security dealers in the U.S. to participate in the smart home and business opportunity. The Connect and Piper units from Icontrol offer technology infrastructure, talent, key relationships and new hardware devices that are expected to complement the Alarm.com platform and help accelerate innovation to keep Alarm.com’s service provider partners ahead in a dynamic market.
“This acquisition will enhance our research and development scale so that we can continue to deliver long-term value to our partners through innovative technology,” said Steve Trundle, President and CEO of Alarm.com. “We look forward to welcoming the Icontrol team and to building upon the solid relationships within their customer base.”
The transaction purchase price is approximately $140 million. Alarm.com expects to fund the transaction with a combination of cash on hand and debt available under the Company’s credit facility. Alarm.com expects the acquisition to contribute to revenue growth and be EPS accretive on a non-GAAP basis for the full-year 2017. Alarm.com expects to provide further details on the anticipated financial contribution from the acquired operations following closing of the transaction. The transaction is expected to be completed by the end of 2016 and is subject to customary closing conditions, regulatory approvals as well as the closing of Comcast’s acquisition of Icontrol’s Converge business unit announced separately today.
Raymond James acted as the financial advisor to Alarm.com on this transaction.
Alarm.com is the leading platform solution for the connected home and business. Millions of people depend on Alarm.com’s technology to monitor and control their property from anywhere. Centered on security and remote monitoring, our platform addresses a wide range of market needs and enables application-based control for a growing variety of Internet of Things (IoT) devices. Our security, video monitoring, intelligent automation and energy management solutions are available through our network of thousands of professional service providers in North America and around the globe. Alarm.com’s common stock is traded on the Nasdaq under the ticker symbol ALRM. For more information, please visit www.alarm.com.