DUBLIN, February 17, 2016 /PRNewswire/ --
The global home security system is projected to grow at a rate of above 13% between 2015-2019, according to a report published on Research and Markets. There are several factors that can be attributed to this growth, such as an increase in home burglary rates and attractive insurance policies for residents who install security solutions.
Today, Apollo Global Management has announced it will acquire home-security monitoring company ADT Corp. for around $6.9 billion. The American company is planning to expand its home-security offerings by combining ADT with its existing security business, Protection 1. ADT currently serves more than 6.5 million clients, while Protection 1 serves an estimated two million .
Another recent report on the home security solutions market predicted growth at a rate of 8.7% between 2015 and 2020, with the overall market value expected to reach $47,542.52 million. It attributed this growth to the rise in crime rates and the technological advancements in various sectors such as sensors, biometrics, surveillance systems, communication technologies, and others.
Apollo said it will pay $42 a share in a statement released on Tuesday. The combined company is expected to generate $4.2 billion in annual revenue, according to reports. Both ADT and Protection 1 provide office security monitoring services, and a recent report on the global residential and commercial security market predicted growth at a rate of 15.16% over the period 2015-2019.
According to the report, growing adoption by commercial buildings is one of the major drivers in this market. Commercial buildings, which include retail stores and office buildings, are adopting security solutions to avoid instances of data theft and pilfering.
The deal is expected to be completed by June.
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1. Source: Bloomberg
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