Michael K Houser's Blog

Acquisition gives ADT, which is owned by Tyco, a 35-percent share of security market.
Tyco Buys Brinks Home Security
By Julie Jacobson
January 19, 2010
Tyco International Ltd., owner of ADT, has acquired competitor Brink’s Home Security for $2 billion in cash and stock.

Tyco intends to combine the two businesses under the ADT name, the company said in a statement.

Brink’s, which now operates as Broadview Security, has more than 1.3 million recurring revenue accounts throughout North America with annualized revenue of approximately $565 million.

ADT has more than 7.4 million recurring revenue accounts globally and generated revenue of $7 billion in fiscal 2009.

ADT’s North American residential and small business operation, which is the most comparable to Broadview, has 4.8 million recurring revenue accounts and revenue of $2.2 billion in fiscal 2009.

ADT owns 29.7 percent of the North American security market, according to a 2007 study by Barnes Associates. Brink’s has a 4.9-percent market share. The next biggest players are Monitronics, a security dealer network, at 2.4 percent, and Stanley (formerly Honeywell Monitoring Services) with 1.4 percent.

Combined with Brink’s, the new ADT will have more than one-third of the market, but that is far from a consolidation of the industry.

The bulk of the security installation market — some 60 percent — is controlled by independent dealers, and that figure has remained fairly stable over the years, sources tell CE Pro.

Lehman Brothers estimates that this group consists of “more than 14,000 small and midsized regional players.”

Even though Tyco owns security manufacturer Digital Security Controls (DSC), ADT has not standardized on that product line. In addition to DSC, the security company installs products from GE Security and Honeywell.

Brink’s, over the years, has installed products from C&K Systems, which is now part of Honeywell. According to the CE Pro 100 report, Brink’s continues to use Honeywell products.

About the Acquisition

Tyco, based in Schaffhausen, Switzerland, said it is paying $42.50 per share for the Irving, Texas-based provider of home security services, representing a premium of more than 35 percent over Brink’s stock, which closed Friday at $31.42.

The acquisition price amounts to 42 times the amount of Brink’s monthly recurring revenue, which is on the high-end of the industry norm, but not off the charts, according to security industry experts.

Brink’s shareholders will have the option to receive $42.50 per share, a combination of cash and Tyco stock or shares of Tyco alone. Tyco expects the deal to close in the second half of its fiscal year, which began Sept. 26, 2009.

Tyco executives announced deal to purchase Broadview for $2 billion, merge it with ADT Security Services. Is this a good thing or this like Microsoft and computer software? Love to hear your thoughts.

Once reserved for crowded malls and brick-and-mortar stores, shopping for the holidays has experienced a dramatic shift to online retailers. Unfortunately, it’s also a lucrative season for phishers and fraudsters, who use the jump in online traffic to illegally obtain the identities of unsuspecting online shoppers. To help, Entrust Inc. provides easy security tips to help customers remain safer while shopping online during the holidays.

“The holiday season is unsurprisingly lucrative for online phishers,” said Entrust President and CEO Bill Conner. “And while they do employ sophisticated techniques for obtaining consumer identities, simple awareness can be a shopper’s most valuable tool in having a safer and more secure online experience.”

Know Phishing Tactics. Consumers can’t be expected to identify every advanced trend in phishing. But they can be aware of common red flags that could signify a potential phishing attack, which may include suspicious URLs, misspellings and urgent requests for banking or personal information.

The SSL Standard. Secure Sockets Layers — more commonly known as SSL — helps ensure that Internet transmissions are encrypted and the identity of the organization has been verified. Consumers can verify if a site uses SSL via the “https:///” in the address bar instead of the standard “http” format.

Look for the Green Bar. Some online retailers have even deployed advanced EV SSL, which turns most browsers’ address bars green during secure transactions. EV SSL is the highest level of security on the Web today.

Find the Golden Lock. One of the main security features of basic SSL, consumers should become familiar with looking for the gold padlock within their browser — especially during the checkout process or when supplying personal information. This indicator should also be present when “https:///” is displayed before your site’s URL in the address bar. Want further assurances? Double-click the gold padlock. Within the dialog box, you’ll be able to verify the name of the company before completing the transaction.

Know Your Path. Tempting offers often arrive in your e-mail inbox. If something looks out of place, however, don’t click on the links — especially if they’re not from a vendor or organization you currently have a relationship with. Instead, navigate to the site yourself to avoid scams and to validate the offer from the organization.

Seek the Seal. Respectable organizations will display the site seal of their SSL certificate provider either on their home page or during the checkout process. Take it a step further by clicking on the site seal to ensure it’s legitimate. Verify that the date and name of the organization are consistent with the site you’re visiting.

Update the Browser. If you’re using a newer computer, make sure you’re using today’s most advanced browsers like Microsoft® Internet Explorer® 8, Mozilla Firefox 3 and Apple Safari 4.0. They all feature more advanced anti-phishing tools (e.g., EV SSL) than older browsers — helping make it even easier for you to stay safe.

Card Security. Most online retailers will require the three-digit Card Verification Value (CVV or CV2) number from the back of your credit card. If they don’t, think twice about completing the purchase.

Be Weary of Wi-Fi. Whenever possible, it’s best to avoid online transactions when connected to a public Wi-Fi — particularly if it’s unsecured. You never know who could be listening.

Logical Logout. This may seem obvious, but log out of any Web session that store personal account or banking information. This simple practice is critical if using a public computer.

Avoid Browser Plugins. Sometimes the offer of a free toolbar for your browser may be too good to be true. Make sure you know who’s providing the plugins and that they’re not a clever disguise for something more nefarious.

Monitor Your Account. While it’s a good habit to keep an eye on your banking account throughout the year, take a closer look during the holiday season — particularly after purchasing products online. If your identity or account has been compromised, you may be able to limit fraud loss if it’s caught early.

Between December 24 and December 26, deaths, injuries and dollar losses caused by fires increase an average of 50 percent, 61 percent and 43 percent, respectively, according to the U.S. Fire Administration. Texas Mutual Insurance Company offers tips to reduce the chances of fire during the holidays.

Holiday lights:

* Do not overload electrical circuits. Follow manufacturer guidelines for the number of light strands connected to each other. Do not use multiple-plug adapters to increase the number of items you can connect to a standard electrical outlet.
* Inspect all electrical items before you use them. On light strands, look for broken or cracked light sockets, frayed or bare wires and loose connections. Make sure the ground prong on three-prong plugs is in place.
* If you use electrical cords or lights outside, make sure they are rated for outdoor use.

Trees:

* Make sure live trees are fresh, with no brown needles or dry limbs. Give them plenty of water.
* Spray live trees with a fire retardant. Tree vendors and local home improvement stores usually carry fire-retardant spray.
* Check the box and the safety tag on artificial trees to make sure they are flame-resistant. Do not place light strands on metallic trees.
* Do not place trees near fireplaces, furnaces, candles or other sources of heat. Also, avoid placing trees near room exits. If the tree catches on fire, you may not be able to get out.

Open flames:

* Place candles in holders that will not tip over, and keep them away from drapes, trees and other flammable objects.
* Put candles out before you leave home or go to bed.
* Have a professional chimney sweep inspect your fireplace annually, before you use it.
* Light fires with kindling and wooden matches only. Do not use flammable liquids.
* Always use a fireplace screen.

When a home fire occurs, heat and smoke build and spread quickly and silently, leaving families with as few as three minutes to escape. Fire safety and survival begin with preparation. Yet, according to a recent national survey from the nonprofit Home Safety Council (HSC), only 37 percent of respondents have taken any actions at home to prevent fires.

HSC is partnering with the National Fire Sprinkler Association (NFSA) to educate families that the best way to protect against a home fire is to have three things: working smoke alarms on each level of the home to warn of a fire, even late at night; a fire escape plan that the whole family has practiced; and an installed home fire sprinkler system to control a fire.

Most families know about the importance of smoke alarms and fire drills, but very few are familiar with home fire sprinklers. In fact, the Home Safety Council’s recent survey revealed that only eight percent of adults in major cities across America live in homes protected by fire sprinklers and 41 percent of those surveyed didn’t know that fire sprinklers were a safety option for their homes.

“It’s definitely a concern that so many families are living without home fire sprinklers. They offer the ultimate fire protection and that can save lives,” said Meri-K Appy, Home Safety Council president. “Fire sprinklers are available for homes, but too often people don’t know to ask for them when they build or move. Many people believe the common myths about fire sprinklers, which may prevent them from wanting to install the system.”

To show home fire sprinklers in action, and help dispel common sprinkler myths, HSC and NFSA have developed online animations that simplify and demonstrate how the technology works. The “Living Room” of MySafeHome.org — the Home Safety Council’s free, virtual home safety tour — features animations comparing a fire burning in a home protected by sprinklers with one that is not. The interactive feature illustrates how quickly a fire grows out of control in the room without fire sprinklers, filling it with deadly smoke. In the home with fire sprinklers, the fire remains small and contained.

Home fire sprinkler systems are installed behind the walls like plumbing. Sprinklers are connected to a constant water supply, so they are always ready to extinguish fires. Only the heat of a fire will cause the sprinkler to flow — not smoke.

If a fire starts, the sprinkler closest to it quickly controls the fire, keeping it small until the fire department arrives. That quick response controls heat and deadly smoke. With a fire under control and confined to just the area of the room where it started, families have more time to get outside to safety — and survival.

“Smoke alarms are essential to alert people to a fire, especially when they’re asleep and most vulnerable,” Appy said. “But only sprinklers work automatically to control and even put out a fire when it’s small. They’re the very best protection a family can have against the tragedy of a home fire.”

If you are considering buying a home or moving to a new building, choose one with a fire sprinkler system, if possible. When building a new home or doing a major remodel of an existing home, consider having a home fire sprinkler system installed. Contact your local fire department for help finding a qualified home fire sprinkler installer.

Even with fire sprinklers, every family needs working smoke alarms and a well-rehearsed fire escape plan for full protection. Follow the Home Safety Council’s advice below to make sure your home is safe from fire.

1. Put smoke alarms inside or near every bedroom. Test them monthly to make sure they work.
2. Put new batteries in smoke alarms once a year, sooner if the alarm chirps.
3. Make a fire escape plan for your family. Find two exits out of every room. Pick a meeting place outside. Practice makes perfect — hold a family fire drill at least twice each year.
4. Always stay in the kitchen while cooking.
5. Keep BBQ grills at least ten feet away from other objects, including the home and any shrubs or bushes.
6. Only light candles when an adult is in the room. Do not allow children to keep candles or incense in their rooms.
7. Store matches and lighters in a locked cabinet, out of reach for young children.
8. Learn how and when to use a fire extinguisher.
9. Space heaters need space. Keep them at least three feet away from things that can burn, such as curtains or stacks of newspaper. Always turn off heaters when leaving the room or falling asleep
10. If you use gasoline, store only a small quantity in an approved gasoline container. Store it in an outdoor shed, away from your home. Never bring any amount of gasoline indoors.

The Los Angeles Fire Department offers Halloween safety tips.

Before Halloween

* Plan costumes that are bright and reflective. Make sure that shoes fit well and that costumes are short enough to prevent tripping, entanglement or contact with flame.
* Consider adding reflective tape or striping to costumes and trick-or-treat bags for greater visibility.
* Secure emergency identification (name, address, phone number) discreetly within Halloween attire or on a bracelet.
* Because a mask can limit or block eyesight, consider non-toxic and hypoallergenic makeup or a decorative hat as a safe alternative.
* When shopping for costumes, wigs and accessories, purchase only those with a label indicating they are flame resistant.
* Think twice before using simulated knives, guns or swords. If such props must be used, be certain they do not appear authentic and are soft and flexible to prevent injury.
* Obtain flashlights with fresh batteries for all children and their escorts.
* Plan ahead to use only battery powered lanterns or chemical lightsticks in place of candles in decorations and costumes.
* This is also a great time to buy fresh batteries for your home Smoke Alarms.
* Teach children their home phone number and to how call 9-1-1 (or their local emergency number) if they have an emergency or become lost. Remind them that 9-1-1 can be dialed free from any phone.
* Review with your children the principle of “Stop-Drop-Roll”, should their clothes catch on fire.
* Openly discuss appropriate and inappropriate behavior at Halloween time.
* Consider purchasing individually packaged healthy food alternatives (or safe non-food treats) for those who visit your home.
* Take extra effort to eliminate tripping hazards on your porch and walkway. Check around your property for flower pots, low tree limbs, support wires or garden hoses that may prove hazardous to young children rushing from house to house.
* Learn or review CPR skills to aid someone who is choking or having a heart attack.
* Consider safe party guidelines when hosting an adult or office party.
Fun Alternatives

* Find a special event or start one in your own neighborhood.
* Community centers, shopping malls and houses of worship may have organized festivities.
* Share the fun by arranging a visit to a Retirement Home or Senior Center.
* Create an alliance with college fraternities, sororities or service clubs for children’s face painting or a carnival.

Before Nightfall On Halloween

* A good meal prior to parties and trick-or-treating will discourage youngsters from filling up on Halloween treats.
* Consider fire safety when decorating. Do not overload electrical outlets with holiday lighting or special effects, and do not block exit doors.
* While children can help with the fun of designing a Jack O’ Lantern, leave the carving to adults.
* Always keep Jack O’ Lanterns and hot electric lamps far away from drapes, decorations, flammable materials or areas where children and pets will be standing or walking.
* Plan and review with your children the route and behavior which is acceptable to you.
* Do not permit children to bicycle, roller-blade or skateboard.
* Agree on a specific time when revelers must return home.
* Along with flashlights for all, older children and escorts should wear a wristwatch and carry coins for non-emergency phone calls.
* Confine, segregate or otherwise prepare household pets for an evening of frightful sights and sounds. Be sure that all dogs and cats are wearing collars and proper identification tags. Consult your veterinarian for further advice.
* Remind all household drivers to remain cautious and drive slowly throughout the community.
* Adult party goers should establish and reward a designated driver.

When Trick-Or-Treating

* A Parent or responsible Adult should always accompany young children on their neighborhood rounds.

Remind Trick-or-Treaters:

* By using a flashlight, they can see and be seen by others.
* Stay in a group, walk slowly and communicate where you are going.
* Only trick-or-treat in well known neighborhoods at homes that have a porch light on.
* Remain on well-lit streets and always use the sidewalk.
* If no sidewalk is available, walk at the farthest edge of the roadway facing traffic.
* Never cut across yards or use alleys.
* Never enter a stranger’s home or car for a treat.
* Obey all traffic and pedestrian regulations.
* Always walk. Never run across a street.
* Only cross the street as a group in established crosswalks (as recognized by local custom).
* Remove any mask or item that will limit eyesight before crossing a street, driveway or alley.
* Don’t assume the right of way. Motorists may have trouble seeing Trick-or-Treaters. Just because one car stops, doesn’t mean others will.
* Never consume unwrapped food items or open beverages that may be offered.
* No treats are to be eaten until they are thoroughly checked by an Adult at home.
* Law Enforcement authorities should be notified immediately of any suspicious or unlawful activity.

After Trick-Or-Treating

* Wait until children are home to sort and check treats. Though tampering is rare, a responsible Adult should closely examine all treats and throw away any spoiled, unwrapped or suspicious items.
* Try to apportion treats for the days following Halloween.
* Although sharing is encouraged, make sure items that can cause choking (such as hard candies), are given only to those of an appropriate age.

During the California gold rush R. U. Darby, a gold prospector, helped his uncle mine a vein of gold that his relative had discovered. It appeared at first that they had a prosperous find. Yet the vein soon disappeared, and Darby and his uncle searched frantically for the spot where it continued. Finally, they concluded their prospects were hopeless and sold their equipment to a junk dealer for a couple of hundred bucks.

The junk dealer consulted an engineer, who looked at the mine and did a little calculating. The engineer advised that the project failed because Darby and his Uncle were not familiar with “fault lines” in the earth’s core. The junk dealer quickly discovered the vein of gold just three feet from where Darby and his uncle had stopped digging and went on to make millions from the ore.

This story (which is illustrated in the classic Think and Grow Rich by Napoleon Hill) points out how important battles in life are often won by persistence. It reminds us that we can give up on a goal too easily and are sometimes much closer to hitting our mark than we realize.

Recently Greg Reid and Sharon Lechter released a book named “Three Feet From Gold” and held a seminar in Anaheim last weekend at The Grove. The event was fantastic and feature several speakers who had overcame similar events as R.U Darby in their life.

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