Information on Brinks Home Security Systems

Brinks home security systems were bought by ADT Security Services in 2010.

Details of the Merger

Brinks Home security spun off into a separate entity from Brink's company in 2008. The Brink's Company had the residential and commercial security installation business which was Brinks Home Security/Broadview security. The other aspect of the Brink's Company is the well known cash transport business. Brinks Home Security was rebranded as Broadview Security in June 2009.

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Brinks/Broadview was bought by ADT in 2010 for $2 billion. Broadview security has been rebranded as ADT. The merger brings together about 6 million accounts, with about 1.3 million accounts, coming from Broadview/Brinks.

The Brinks/Broadview accounts have been known for low attrition rates. Their customers were less likely to switch or stop their security services.

To make the consolidation work, ADT will most likely consolidate monitoring operations and make cuts in administrative back-end positions.

About ADT

With the merger, ADT now has about 40-50% of the residential security services market. They are the main player within the industry. ADT already has a strong presence within the commercial security market.

ADT is owned by Tyco International Ltd. Tyco is a diversified and global company. Tyco is a leading provider of security products and services, fire protection, valves and controls, and other industrial products. Tyco has about $187 billion in sales.

What does the merger mean for new and existing Brinks customers?

Brinks home security systems had the highest ratings regarding customer attrition in the industry. Their customers were satisfied with the services of the company. Brinks had a low percentage of customers who switched to another security company.

There is a possibility that past Brinks customers will not get the same level of service as before. Even if ADT is committed to taking care of their customers, Brinks had different strategies and tactics in working with their customers that were successful. ADT will most likely continue to operate based on the same customer principles as before.

Concerns of Merger

There are also concerns regarding the potential outcomes of the merger and the possibility of disrupting operations and customer service.

First, ADT will most likely be consolidating alarm monitoring operations. Brinks had two centers within the US and the previous ADT had five.

If ADT has the right systems in place, consolidating operations should not be a problem. They need to ensure that their computer systems are well integrated. They also need to make sure that they have enough personnel to handle the monitoring.

Second, ADT will be cutting administrative personnel to ensure that they get a return on their investment. Most of the cuts will be in positions where customers will not be affected. Hopefully, there will not be any cuts in customer service personnel.

Increased Competition?

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There has been major consolidation at the top of the home security market. ADT is the 'top dog' within the market.

But this can also be a boon to both consumer and smaller security companies. There will be consumers who do not want to use ADT's services and they will be looking for other companies to use.

There is also an opportunity for smaller companies to provide innovative security services. They are nimble and agile enough to provide these types of services more quickly than a huge company like ADT can.