“It is a struggle and we are spending a lot of money to make sure we can supply product,” Cook said. “There is a shortage of components across the board and honestly it is not stopping. I would love to tell everyone that 2022 is going to be great, but you are going to see some struggles.”

Meiter and Orbegoso both agreed, but quickly added labor issues to the mix.

“There are two big issues,” Orbegoso said. “One is supply chain and the availability of material, and the other issue is labor. That is really going to hit us. Not only do we need people to install, but people to manufacture. There is a huge labor gap and we can’t get people in fast enough.”

From there the conversation turned to technology, where the panelists set up many of the sessions for the rest of the day that touched on AI, convergence, cybersecurity, and cloud, along with how to turn these big trends into the all-important RMR.

“Cyber and cloud are the two scariest words in the industry,” Cook said. “The problem is IT people are taking more control of the budget and buying power and their first question is, ‘What are your cyber protocols and encryption levels?’ Dealers and manufacturers are literally avoiding it. … Dealers need to be knowledgeable enough to use it as a service. We haven’t trained them and the industry hasn’t trained them. We need to do a better job of doing cyber for dummies and get to the point where we feel comfortable.”

The need to pivot to recurring revenue streams is critical, Meiter added. “We talk about IT influencing physical security and we are seeing that much more. Years ago it was difficult to sell service agreements on video software. They didn’t care. Now with NVRs and IT departments managing that environment, they basically mandate maintenance. … At the end of the day the companies out there selling and installing equipment, if they can adapt to sell [services], they will be successful. Things may look bright in 2023, but who knows about 2024 or 2025. You have got to build your business to weather that.”

For the keynote, SNG returned to the supply chain issues, with Tom Garrison, vice president and general manager client security strategy and initiatives for Intel Corp. detailing his company’s efforts to create a digital supply chain security model based on digital DNA of components. Garrison spoke of the cybersecurity issues of supply chain security, noting that the already struggling supply chain has become the front line of a lot of the leading edge cyber-attacks.

“One challenge we have is the nature of the supply chain,” he said. “Chances are you think of physical security. ‘Do I have secure factories and trusted employees and vendors?’ Those are important but not comprehensive. That is where we at Intel think the next challenge resides.”

In digital DNA, Intel uses a comprehensive suite of tools, ingredients, and standards to deliver supply chain security, he explained. These include: OEM authenticity; country of origin and manufacturer; integration history; device health; device and component authenticity; chain of custody; tamper evidence; known good configuration; and asset tracking.

This allows people to be able to track and trace back to the components and know whether these devices are in a trusted state, he said.

The day featured several conversational-style presentations, from James Rothstein, operating partner, Lee Equity Partners interviewing Allied Universal CEO Steve Jones, to a conversation with Kastle CEO Haniel Lynn and Northland Controls CEO Pierre Trapanese; and one on cybersecurity and the healthcare supply chain with Min Kyriannis, CEO of Amyna Systems and Michael McNeil, global CISO, McKesson.

Throughout the day, Murphy kept everyone guessing, teasing an upcoming “mystery guest.” At the penultimate presentation, the mystery guest turned out to be Axis Communications’ Vice President Americas, Fredrik Nilsson.

“The question we all have is what are the trends and technologies that we will be looking back on at SNG 10 years from now and realize they changed the industry?” Nilsson said. “Is it AI and deep learning? Or is it cloud? What role will the edge play in the transition to the cloud? Is it cybersecurity and the threat and opportunity? Will that attract new players to our industry?”

As is tradition at SNG, the last session of the day featured John Mack III, executive vice president of Imperial Capital and Alper Cetingok, managing director and head of diversified industrials for Raymond James discussing the financial trends of the security industry and recent M&A activities. And this year’s presentation ended the session on a high note.

Cetingok called this year one of the most prolific in the security and safety space, adding, “We think this will continue. … When we think about all that is going on across the major sectors of the market, we are seeing tremendous amounts of change. … The excitement level in this space from investors is the highest I have ever seen. Continue to do what you are doing because there is more forward momentum than ever before.”

Securing New Ground 2022 will take place in-person in New York City from October 18-22 next year. —Karyn Hodgson, SDM Editor //

90%

“Brivo is unique not only in that we created the category-defining smart spaces platform, but that our products and services are foundational systems within our customers’ buildings, ensuring the safety and security of their tenants, residents and employees,” said Steve Van Till, founder and CEO of Brivo. “We are entering our next phase of growth as a public company supported by favorable secular tailwinds driving a smart spaces revolution, and Brivo is uniquely positioned to continue to capture the growing opportunity as we realize exceptional customer buy-in, continued expansion and high levels of retention.”

Dean Drako, chairman of Brivo, added, “Brivo is the most sophisticated and mature cloud-based access control platform on the market and enjoys a highly compelling growth trajectory. This transaction will provide us with a significant source of capital to continue to fuel innovation and introduce high-quality products and services that protect lives and assets. Brivo is truly first and best in class, with a significant head start on others that have more recently entered this rapidly growing space. We look forward to continuing to set the industry standard and expand our position as the category leader.”

Brivo has a customer base of more than 44,500 customer accounts comprising over 300 million square feet of commercial property, 330,000 doors, and 23 million credentialed Brivo users across 42 countries, all 50 states, and Puerto Rico.

“As an owner and operator of a sizable portfolio of commercial properties, we recognize the significant value Brivo brings to the ecosystem, and we believe there is a compelling opportunity to leverage our experience and relationships to further establish the company as the pre-eminent provider of cloud-based access control and smart building technology,” said Richard Chera, chairman and CEO of Crown PropTech Acquisitions. “Brivo has demonstrated its value through its strong subscription revenues, retention rates, network of channel partners, and successful land and expand strategy, creating a highly loyal customer base. We look forward to supporting Steve and the team as they advance their strategic priorities.”

Existing Brivo shareholders will roll over 100 percent of their equity, retaining 69 percent ownership in the pro forma company. Assuming no redemptions, Crown shareholders will own approximately 31 percent of the combined company.

“We are excited to provide a highly structured and flexible financing solution to support Brivo, the market-leading provider of cloud-based access control solutions in the enterprise and commercial segments,” said Marko Soldo, head of Golub Capital Credit Opportunities. “We think Brivo’s strong management team, coupled with Crown’s deep experience in real estate and the leadership of a proven serial technology entrepreneur like Dean Drako make for a world-class combination.”

Brivo’s management team — including Van Till, COO John Szczygiel, CFO Mike Voslow, and CTO Jeff Nielsen — will continue to operate and manage the combined company following the transaction. Dean Drako, founding CEO of Barracuda Networks, will continue to serve as Brivo’s chairman of the board. The boards of directors of Brivo and Crown have unanimously approved the business combination. The transaction will require the approval of the stockholders of Crown, and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. The transaction is expected to close in the first half of 2022. //

Beginning Dec. 15, 2021, The Monitoring Association (TMA) members who are FM approved, Intertek/ETL, or UL-listed may submit their applications for the TMA 2022 Monitoring Center Excellence Awards. Based upon the number of subscribers, monitoring centers have the option to enter up to four categories, which include Monitoring Center of the Year; Monitoring Center Manager of the Year; Monitoring Center Operator of the Year; and Monitoring Center Support Person of the Year. The deadline for entry is Feb. 4, 2022. The awards will be presented in conjunction with TMA’s 2022 Mid-Year Meeting in late April. In addition to receiving the awards, winners will be featured in an SDM article following the awards ceremony. Visit TMA’s website for entry details. //

“With its strong focus on the customer, Sunpro is the perfect partner for ADT and a logical extension of our ecosystem, unlocking an integrated home experience that includes security, automation and energy management,” said Jim DeVries, ADT president and CEO. “By combining a cash-flow-positive company in the high-growth solar space with ADT’s trusted brand, national footprint, and cross-sell potential, we can expand offerings to our customers and accelerate growth for both ADT and ADT Solar.”

Sunpro founder Marc Jones and the Sunpro management team are expected to join ADT to help build ADT Solar.

“Becoming part of the ADT family will accelerate our ability to bring residential and commercial rooftop solar to more customers, helping them save money and also become more energy independent,” Jones said. “With our shared mission to further advance smart home technologies and renewable energy solutions for customers, our expansion will make a meaningful difference in how our customers live daily.”

Sunnova Energy International Inc. and Brinks Home announced they are partnering to allow Sunnova to offer its customers options from the Brinks Home portfolio of smart home security solutions, and allow Brinks Home dealers and authorized representatives to offer their customers Sunnova’s suite of solar, battery, and energy services.

“Brinks Home is committed to delivering best-in-class customer experience coupled with smart home products and security services to our nearly one million customers,” said William Niles, CEO of Brinks Home. “The partnership with Sunnova will align with that mission by extending our value proposition to smart home energy management with a partner that shares the same commitment to customer satisfaction. We look forward to partnering with Sunnova to deliver a smarter, safer, and greener home for our shared customer base.”

Sunnova will also offer financing to Brinks Home customers for security equipment and installation.

“The home is a sanctuary, which means ensuring the safety of your family is a key priority,” said William J. (John) Berger, founder and CEO of Sunnova. “By connecting Brinks Home customers to clean and affordable solar energy and Sunnova customers with top-of-the-line security, we’re confident customers will find the unique solutions their homes need. The solutions provided by Brinks Home complement Sunnova’s, and by leveraging our collective strengths, we will help power and protect the home of the future.” //

For AST CEO, Bob Ricucci, the deal was especially accretive. “The Premier business model fits with what we do and how we approach client performance and satisfaction,” he said. “The geographic density and size of the account base made this transaction ideal for all parties. Our effort now will build upon the already excellent performance of Premier, and provide our new members of the AST family the very best service and total solutions possible. Additionally, our partnership with Alarm Financial Services has been instrumental in successfully completing this transaction.”

Premier CEO Russ W. Vorse added, “We’re confident that AST can provide the same level of service that our customers have come to expect from us.” //

“SIA has a strong history of over 50 years of service to the security industry, and I am excited to join SIA and its nearly 1,200 member companies in shaping its future,” Shen said. “SIA’s Standards Committee has been very active in obtaining the adoption of the OSDP standard by the International Electrotechnical Commission (IEC) as IEC 60839-11-5 and launching the OSDP Verified program. I look forward to bringing value to our members through tackling current challenges and exploring new opportunities through standards.”

As director of standards and technology, Shen will spearhead SIA programs like the SIA Open Supervised Device Protocol (OSDP) standard and its related OSDP Boot Camp and OSDP Verified offerings, as well as projects that align security technologies with industry best practices, standards and guidelines. He will also serve as the SIA staff liaison for the SIA Cybersecurity Advisory Board, which guides SIA members ahead of potential cybersecurity issues related to electronic physical security measures and provides prescriptive guidance and advocacy for new and existing cybersecurity strategies and solutions.

“We are thrilled to have Edison join the SIA team as our standards program further evolves to meet the needs of members and the industry,” said SIA CEO Don Erickson. “With his deep knowledge of standards and technology, he will help to implement the SIA Standards Roadmap, accelerate growth of existing SIA programs such as OSDP Verified, introduce new content and committee opportunities for members in the areas of AI and video, and add additional technical expertise to SIA’s advocacy efforts before government agencies such as NIST and CISA.” //

“Our Central Security team has been privileged and proud to serve our community for over 30 years,” said Dana Hurlbut, former owner of Central Security and Electronics. “What we began in 1988 as a one-man operation wiring security for builders in new homes has grown into a well-established full-service security provider with 10 offices and technical staff. Thanks to all of our loyal patrons, we are now providing security, fire, camera, and access control services to several thousand customers, including our local government offices, educational and religious establishments, as well as numerous commercial and residential accounts. With an eye toward future growth, we are pleased and excited to announce that we are merging our company with Bates Security, a similar and successful family-owned business with offices throughout the Southeast.”

In the last two years, Bates Security also recently completed acquisitions of the Lyon Alarm in the Central Kentucky areas as well as Southtech Integration (dba Dynamark) in Jacksonville, Fla. Bates Security was No. 37 on the 2021 SDM 100.

“We share many of the same goals with Central Security, including a commitment to providing excellent customer service and cutting-edge technology options,” said Jeremy Bates, president of Bates Security. “My brother Bryan and I are excited to lead the company’s growth into new areas of Florida, Georgia, and Kentucky, and the addition of Central Security helps further that goal. The Bates team brings additional resources and ideas that will further enhance the services of the Central Security client base in Lake Placid, Highlands and surrounding counties.” //

“The combination of video and analytics continues to play a powerful role in supporting enterprise security,” said Greg Brown, chairman and CEO, Motorola Solutions. “With Envysion, we will bring greater operational efficiency and safety to the vast restaurant and retail industries across the U.S., expanding our presence and reinforcing our strategy as a global leader in end-to-end video security solutions.”

Envysion’s platform helps to identify and resolve theft and support priorities such as customer and employee safety, workplace productivity, and physical security. Business owners have access to actionable insights to drive better management decisions to reduce loss, mitigate risk, and enhance profitability.

“We are excited to join Motorola Solutions and look forward to advancing the innovative solutions we deliver to our customers,” said Matt Umscheid, CEO, Envysion. “Together, we will continue investing in and building upon Motorola Solutions’ portfolio of video security and access control solutions and equip enterprise customers with unparalleled security capabilities.”

Terms of the transaction were not disclosed. //

“The Mission 500 Cornhole Tournament is another new and fun fundraising event designed to encourage more individualized participation from security professionals that’s also open to their friends and families,” said Ken Gould, chairman for Mission 500. “We would also love to get corporate sponsors in the Northeast region to help us help children in need by supporting this fun event. We welcome your organization’s participation with open arms.”

Those interested must participate in teams of two and registration cost is $50 per person. There will be door prizes and a bragging trophy to the winning team. The event is scheduled to take place on Saturday, Dec. 11, 2021, from 4 to 7 p.m. and will be held at Kirkbride Hall, 5 Patriot Hills Lane, Stony Point, N.Y.

“We felt that partnering with Mission 500 was a great way to help both organizations raise funds for each of our causes and help elevate attendance to make it a great networking event as well,” said Elisa Mula, founder of Moms in Security Global Outreach. “Let’s get together and make this tournament amazing and feel great about what we’re doing.”

Register at https://www.mission500.org/2021-cornhole-tournament-registration/. //

“We’ve celebrated tremendous growth this past year, and with each acquisition, we remain focused on two things: culture and service,” said Ken Lochiatto, CEO of Convergint. “We are honored to be welcoming over 75 colleagues from Simpson Security Systems. We look forward to working together, deepening our local vertical market expertise, and continuing to provide our customers with best-in-class service across the Southeast and Central regions of the United States.”

Founded in 1991, Simpson Security Systems provides security and special systems solutions, with a large concentration of fire alarm, access control, and video surveillance. The company’s clientele includes businesses of all sizes, healthcare facilities, and state and government entities, including the Department of Justice.

“We are excited to be joining Convergint, a company that continues to scale its services to meet the increased global demand for fire, life safety, and security needs,” said Keith Simpson, CEO of Simpson Security Systems. “For 30 years, Simpson Security Systems has prided itself on culture and customer service — both of which align strongly with Convergint's Values and Beliefs. We look forward to joining Convergint and further enhancing our service capabilities.” //