The ADT Corporation
Logo used since 2006.
S&P 500 Component
|Industry||Burglary, Fire and Carbon Monoxide detection, Fire suppression, Security systems, Communication systems, Video surveillance, Access control, Radio frequency identification, Electronic article surveillance|
|Headquarters||Boca Raton, Florida, U.S.|
Naren K. Gursahaney
(President, Innovation & Product Development)
The ADT Corporation provides residential and small business electronic security, fire protection and other related alarm monitoring services in North America. The corporate head office is located in Boca Raton, FL.
There were many small telegraph delivery companies in the United States in the 19th century. In 1874, 57 district telegraph delivery companies affiliated and became "American District Telegraph". With the increase in telephone usage in the late 19th century, ADT's messenger business slowly declined in popularity. ADT tried branching out and developing their signaling business while still maintaining their telegraph business as primary income source. ADT incorporated into Western Union in 1901. ADT separated its messenger business from its main signaling business at that time. In 1909, Western Union and ADT came under the control of AT&T. ADT began to expand into new areas such as fire alarms and burglar alarms between 1910 and 1930, but was kept separate from AT&T's Holmes alarm business. ADT became a publicly owned company in the 1960s.
In 1964, ADT was found to be a monopoly in restraint of trade. It was shown to provide almost 80% of the central station alarm service in the United States. In some cities, such as New York City and Memphis, Tennessee, they were the sole provider. They were also found to have forced competitors out of business by lowering prices below cost. They would charge national accounts very low prices in cities with competitors and much higher prices where no competition was available. ADT was forced to adopt a national price list, which could not be varied, to help establish Central Station Competitors in cities without competition, and to pay fines and triple damages to the federal government, customers, and local competitors.
In 1977, the UK's Lord Ashcroft had bought under-performing outdoor equipment maker Hawley Goodall, and transformed it through acquisition into a business services group. In the early part of 1987, Hawley bought the Indianapolis-based Crime Control Inc., the fourth-largest company in the U.S. security market, for $50 million. Later in the year, it bought ADT and moved to Bermuda. This purchase transformed Hawley into the leading security services business in the United States, and resulted in the majority of its revenues coming from the North American market. As a result of the acquisition, Hawley changed its name to ADT Limited and decided to refocus its business around security services. At the end of 1987, the company sold its North American-based facility services business to Denmark's ISS A/S.
By the mid-1990s, ADT surpassed the one million customer milestone. In 1997, ADT was purchased by Tyco by means of a reverse takeover, thus allowing Tyco a Bermudan tax status. ADT Limited changed its name to Tyco International Ltd. Lord Ashcroft joined the board of Tyco, although he had quickly disposed of a large amount of his Tyco stock taken in payment for the purchase of ADT.
On September 19, 2011, Tyco announced that it would split into three companies, ADT being one of the three.
On July 10, 2012, ADT launched its values of trust, collaboration, service and innovation to all employees.
On September 28, 2012, ADT separated from former parent company Tyco International.
On October 1, 2012, ADT debuted as an independent public company and began trading on the New York Stock Exchange (NYSE: ADT). Founded nearly 140 years ago, ADT began its next chapter as one of the most well-known brands in the security industry, with $3.1 billion in 2011 annual revenue and 6.4 million customers.
On October 8, 2012, ADT rang the opening bell at the New York Stock Exchange. Long-term ADT customers, first responders and front-line employees joined ADT leadership on the podium.
In other countries
ADT operates in 35 countries.
In the UK
ADT first entered the United Kingdom in the late 1950s with the establishment of Electric Protection Services Limited based in London and introduced central monitoring in the mid-1960s at the request of several leading banks, despite not opening a central monitoring station of their own. The 1970s and 80s brought steady growth.
In the mid-1990s, ADT Inc was acquired by Tyco International at the same time Tyco also bought up the UK firm Thorn Security. In 1997, ADT Fire and Security plc was formed from the merger of three of the UK’s largest security firms: ADT, Thorn Security and Modern Security Systems.
The ADT brand name in the UK is actually used under licence from ADT Corp by Tyco since the separation in October 2012.
ADT's UK head office is based in Sunbury just outside West London.
ADT is the largest security company in the United States and Canada, serving over 6.4 million customers. As of 2011 ADT holds 26% market share of the US market and has six monitoring stations—four in the United States and two in Canada.
ADT has an authorized dealer program. Under this program, independent dealers offer security system installations which are then monitored by ADT. Some ADT Authorized Dealers use similar Honeywell/Ademco products as installed by ADT, while other dealers utilize GE/ITI or DSC products.
Whether a customer purchases ADT monitoring services directly from ADT or through an authorized dealer, a 36-month monitoring contract is required, except in California, where the term is 24 months.
Products and services
- Home Security Systems (including Fire and Life Safety)
- Custom Home Security Systems (including Fire and Life Safety)
- Home Health and Companion Systems
- Home Video Surveillance
- Home Remote Interactive Management & Automation Systems
- Business Intrusion Detection
- Business Video Surveillance
- Business Electronic Access Control
- Business Remote Interactive Management & Automation Systems
Acquisition of Broadview Security
In early 2010, Tyco International announced that it was acquiring Brink's Home Security Holdings, (operating as Broadview Security) and was merging the company with its ADT brand name in a transaction valued at $2.0 billion. The transaction, which was finalized and closed mid-2010, combined the #1 and #2 security companies in North America, adding Broadview's 1.3 million customer accounts and $565 million in annual recurring revenue to ADT's existing customer base of 7.4 million accounts and $7 billion in annual recurring revenue.
- www.bloomberg.com, Company Profile for ADT Corp/The (ADT), as of July 9, 2013, <http://www.bloomberg.com/quote/ADT:US/profile>, (accessed July 09, 2013).
- Our History
- "Tyco International to Acquire Broadview Security". Tyco.mediaroom.com. 2010-01-18. Retrieved 2010-05-18.
- Tyco International Completes Acquisition of Broadview Security
- "Tyco to split itself into three companies". News & Record. Associated Press. 2011-09-19. Retrieved 2011-09-19.
- ADT Company Information
- Tyco International to Acquire Broadview Security