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ADT splits into two organizations

Immediately following its acquisition of Broadview Security, ADT has split into two organizations: one focusing on residential and small business, the other on commercial customers.

“The business model to serve our residential and small business customers and our commercial customers are very different,” said Naren Gursahaney, president of ADT Worldwide. “By operating as two organizations, we believe we’ll be able to sharpen the focus on the unique aspects of our customers who, in these two segments, require specialized solutions and services.”


May 18, 2010
By Neil Sutton
Neil Sutton

Gursahaney announced the change on May 17, three days after the ADT acquisition of Broadview officially closed.

John Koch will take the reins as president of ADT North American Residential and Small Business. Koch previously held titles as ADT’s chief operating officer and president, ADT Security Services.

John Kenning, who joined the company in March of this year, will become president, ADT North America Commercial. Prior to joining ADT, Kenning served as a senior vice-president at Toronto-based Nortel Networks Corp.

Kenning said that the commercial operation will attempt to capitalize on the growing popularity of IP in the security market and offer customers new solutions.

“I think we’re primed and positioned to support our customer base as they transition towards the technology that we will be providing,” he said. “There’s more intersection of the security space than we’re seen in the past with the IT world and we’re going to take advantage of that. We’ve reorganized the business to focus on our customers.”

According to Koch, the Broadview acquisition increases ADT’s residential and small business revenue by 27 per cent to US$2.8 billion, 85 per cent of which is recurring monthly revenue (RMR). He added that ADT now reaches 90 per cent of zip codes in the U.S. and Western Canada; there are now six monitoring centres in U.S. and two in Canada (Calgary and Montreal).

Koch added that integration of Broadview with ADT will continue over the next 100 days. Broadview advertising and branding will be phased out this summer and fall while ADT will increase its marketing presence.

He also said that ADT is reviewing its dealer programs. Ultimately there will be a blend of the best elements from ADT’s and Broadview’s programs and a hybrid will be rolled out over the next several months.
 

According to director of corporate communications, Ann Lindstrom, ADT’s business in Canada will follow the same division between residential/small business and commercial as the U.S. She added that "Intercon Security refers to the guarding business in Canada and ADT Advanced Integration is part of ADT Commercial. ADT Advanced Integration represents the advanced integration capabilities obtained through the acquisition of SST. Over the past two years, we’ve integrated those capabilities into the ADT Commercial organization."