ADT Expands Into Commercial Security Market

Non-compete pact between ADT and Tyco Integrated Security expires, creating space for ADT to move into the commercial market.

ADT will expand into the midsize commercial security marketplace, effective today, following the expiration of a non-compete agreement with Tyco Integrated Security (TycoIS).

ADT and TycoIS split into separately traded companies as part of Tyco International’s reorganization in 2011. A non-compete agreement was born out of that split by which ADT would be allowed to do business with commercial clients smaller than 7,500 square feet, and TycoIS would be allowed to do business with commercial clients larger than 7,500 square feet.

With the non-compete pact expired, ADT can now provide service to businesses of any size, creating additional long-term growth opportunities for the company. The newly rebranded ADT Business, previously known as ADT Small Business, will now deliver an expanded portfolio of solutions that meet the evolving needs of small and midsized businesses, according to the company.

Likewise, TycoIS is making efforts to increase its presence in the small commercial market. Last week the company announced the release of Holis, a low cost, commercial-grade IP-based video surveillance solution line designed specifically for small businesses. It comes with an option to integrate a remote management application for monitoring and managing security systems offsite from a mobile device.

Related: Physical Security Market, Worth $88 Billion by 2019?

ADT is increasing its service offerings to midsized businesses in Atlanta, Chicago, Denver, Detroit, the New York metropolitan area, Philadelphia, Phoenix and Seattle/Tacoma; as well as the states of California, Florida, New Jersey and Texas.

ADT says it is investing in the necessary resources and making further enhancements to its product portfolio in order to capture future growth opportunities in the midsize commercial market. A dedicated commercial sales organization serving these new markets is being created, plus ADT’s existing sales organization will continue serving both current and prospective small business customers.

Currently, ADT’s small business customer base comprises more than 500,000 clients, according to the company, from pizzerias and clothing boutiques, to veterinary clinics and law offices. With the expansion of ADT Business, the company can now extend its services to include customers with larger premises and those requiring more advanced capabilities, such as fire monitoring, says Luis Orbegoso, president of ADT Business.

“The trust and loyalty our customers have in ADT goes far beyond the four walls of their businesses,” Orbegoso says. “We deliver the products that meet their unique needs, the protection they rely on, and the peace of mind they associate with the ADT brand. We are excited about the opportunity to extend our reach with ADT Business, and help even more businesses thrive.”

Read more about ADT’s plans to enter the commercial security market on CI’s sister site, securitysales.com.