A Busy Year: Rapid Mergers & Acquisitions Suggests More To Come In 2019

Discussed in this SecurityInformed.com Security Beat article:

A rapid string of M&A transactions going into 2019 suggests that it will be a a busy upcoming year of companies buying other companies in the physical security industry.

Joe Grillo, CEO of ACRE, previously hinted at upcoming M&A activity for his company by the end of 2018, foreshadowing ACRE’s late-year announcement to acquire access control company Open Options.

Market research firm Memoori forecasts that the value of acquisitions could decline marginally in 2019 in terms of value, but increase in number, based on their charting data of physical security deals over the last 18 years.

Jim McHale, Managing Director of Memoori, says there have been four cycles of increase and decline in activity, often exaggerated by billion dollar deals in one year such as the merger of Johnson Controls and Tyco valued at $165Bn in 2016.

“ACRE has been a major contributor and has completed some 10 acquisitions. In general, the access control business has been slow to move to open systems, and hopefully we can expect this trend toward openness to continue as it will give additional growth to the business.” – Jim McHale, Managing Director of Memoori

Get more insights in Memoori’s report “Major Trends in the Global Access Control Market 2018”.

Read the original Security Informed article.