Security Systems News

APR 2016

Security Systems News is a monthly business newspaper that reaches 25,100 security installers, product distributors, central stations, engineers & architects, and security consultants. Our editorial coverage focuses on breaking news in all major se

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SECUriTY SYSTEMS NEWS April 2016 suppliers 51 FATHER KNOWS BEST The central station saw a person; your customer saw their son. With video verification in the app, your customers can instantly view live video in real-time allowing them to quickly cancel or verify an alarm from anywhere. Just one of the dozens of powerful features you will find in the Virtual Keypad App. Learn more at VISIT US AT ISC WEST IN LAS VEGAS | APRIL 6-8, 2016 BOOTH #23089 stations." Imperial Capital, which advised RSI on the deal, could not be reached for comment. Asked about the demand for video verifcation, IHS Research analyst Niall Jenkins said video verifcation is "one method for the central station operator to make a better decision on whether an alarm is genuine or not." RSI brings Honeywell technol- ogy "that facilitates an alarm- receiving [central station] operator to watch a short video clip when an alarm is triggered. The operator can then make a more informed decision prior to requesting police dispatch." Regarding the DIY market, Jenkins said that IHS is "forecasting the U.S. installed base to grow by 30 percent year-on-year in 2016." He added that consumers will have more opportunity to self-install security systems and still have a professional monitoring service. "Offering a video verification product as part of the DIY package will help differentiate the service from DIY smart home system com- petitors coming from the consumer market, such as Samsung and Panasonic," Jenkins said. In its announcement about the merger bid with UTC, Honeywell said it was suspending its bid "due to [UTC's] unwillingness to engage in negotiations." UTC said recently that a merger between the two would not pass necessary regulatory approvals. Honeywell said it "strongly dis- agrees with United Technologies' characterization of the regulatory and customer risks associated with the transaction. We remain confdent that the regulatory pro- cess would not have presented a material obstacle to a transaction." Honeywell also provided some information about the deal's history, saying that UTC had approached Honeywell about a merger in May, 2011 and in April, 2015. Honeywell said it approached the UTC chairman and CEO on Feb. 19 with hopes of continuing "amicable and quiet discussions of a combination." The news release said "we were told by them during the meeting that such a combina- tion would be fabulous, they would take it very seriously, and they would get back to us with ques- tions within a week in anticipation of their upcoming board meeting." I n a p re p a re d s t a t e m e n t , Honeywell's David Cote said, "We made a full and fair offer that would have greatly beneftted both sets of shareowners. Considerable value would have been added through the $3.5 billion of very achievable cost synergies (6 per- cent of UTX sales, 4 percent of total sales) and application of Honeywell man- agement prac- tices, especially our extensive software capa- bility and cost management that would support needed product reinvestment. It also would have created the opportunity to construct an excellent core growth portfo- lio. However, continuing to try to negotiate with an unwilling partner is inconsistent with our disciplined acquisition process." Cote continued, "We have a ter- rifc growth story for standalone Honeywell that we look forward to sharing at our Investor Day on March 2." I n re s p o n s e , U T C i s s u e d a statement in which it called ending merger conversations an "appropriate outcome given the strong regulatory obstacles, nega- tive customer reaction and the potential for a protracted review process that would have destroyed shareholder value." UTC said it will focus on its "key priorities—pro- gram execution, innovation, cost reduction and disciplined capital allocation." SSN Continued from page 1 Honeywell buys video verifcation company RSI Honeywell said it was suspending its bid to merge with UTC "due to [UTC's] unwillingness to engage in negotiations."

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