Security Systems News

OCT 2018

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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S ec U r I t Y SYS te MS N e WS Oct O ber 2018 Monitoring 19 close in the third quarter of 2018 and is subject to regulatory approv- als and other customary closing conditions. The two companies have worked together in a partnership, with Best Buy offering GreatCall products in its stores. "Our direct to con- sumer advertising would highlight 'Available at Best Buy stores,'" said Donnini. "I think the Best Buy folks believe—and I believe cor- rectly—with greater visibility and merchandising in their stores, they can accelerate the growth of the company." Hubert Joly, chairman and CEO of Best Buy, said in a prepared state- ment: "We know technology can improve the quality of life of the aging population and those who care for them." Joly continued, "Now, we have a great opportunity to serve the needs of these customers by combining GreatCall's expertise with Best Buy's unique merchandising, marketing, sales and services capabilities. We look forward to working closely with David and his management team and are excited by the oppor- tunities we have in the health space and the strengths we can bring to bear in this area, especially our experience with technology and serving customers in their home." Best Buy reached out to GTCR about purchasing GreatCall shortly after the beginning of 2018, however GTCR felt it was too soon after the company's purchase of GreatCall in mid-2017. "They had strategically identified senior products and ser- vices, as an area that was important to their customers, where they want to have a meaningful presence," Donnini said. "[Best Buy] found GreatCall to be … the best platform to really grow that strategic effort in their business," he added. According to Best Buy's announce- ment of the transaction, the deal is part of Best Buy's long-term capital allocation strategy to first fund operations and investments in growth, including acquisitions, and then to return excess free cash flow GreatCall to be acquired over time to shareholders through dividends and share repurchases, while maintaining investment-grade credit metrics. The acquisition is not expected to impact Best Buy's dividend strategy or its previously communicated plan to spend $1.5 billion on share repurchases during fiscal 2019. Donnini said that GTCR made its investment in GreatCall with the idea of growing the company, which expanded by about 20 percent across both RMR and customers in the 14 months of its ownership, he estimated. Goldman Sachs & Co. LLC and Allen & Company LLC are serving as financial advisors to Best Buy, and Simpson Thacher & Bartlett LLP is serving as legal advisor to the company. Raymond James & Associates Inc. is serving as financial advisor, and Kirkland & Ellis LLP is serving as legal advisor to the seller, GTCR. SS n dropping, he was able to then offer this service nationwide." EMERgency24 works to stay on the cutting edge of technology, Lehan said. "We want to always be able to offer the newest technologies as they're coming to market. … We do that by continually investing in people who have the ability and the vision to see how they could use technology to enhance our subscriber experience." All of EMERgency24's development is in house, Monteverde Jr. said. "We don't know what technology is going to be like a year from now, three years from now, five years—20 years from now," Monteverde Jr. said. "We envision ourselves being able to adapt, evolve with whatever technology comes up, and not be pigeon-holed in [focusing on one technol- ogy]. … We are flexible in our vision for the future." Lehan said: "We continue to look for new ways to give our alarm contractor custom- ers the ability to sell more services to their customers, which makes them more profitable. … That's how we've been successful for many, many years." SS n Continued from page 16 EM24 Continued from page 1 Like us on FACEBOOK Follow us on INSTAGRAM! @Security_Central Email: 1-800-560-6568

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