This Research Note explores the acquisition of Paladin Technologies by Bosch Building Technologies announced on 5th July 2023. With this transaction, Bosch plans to expand its building services offering in the U.S. and enter the systems integration market in Canada.

Paladin Technologies, the largest Canadian security systems integrator, has over 1,500 associates and projected 2023 sales approaching USD 400 million across 35 offices.

Since 2017, the company has grown its professional headcount by 250% through M&A. In 2017, Paladin Security merged with Marcomm Systems Group and CONTAVA. Subsequent Paladin acquisitions included Commercial Security Integration (CSI) of Texas and VTI Security of Minnesota in 2021.

Bosch Building Technologies has two business segments:

• Security and Safety Systems, a global product business for security and communications solutions. The portfolio includes video security, intrusion detection, fire detection and voice evacuation systems as well as access control and management systems. Professional audio and conference systems for communication of voice, sound and music complete the range.
• Energy and Building Solutions, a regional systems integration business offering solutions and customized services for building security, energy efficiency, and building automation for commercial buildings and infrastructure projects. The business operates in seven countries: Germany, India, Netherlands, Singapore, Switzerland, USA and the UK.

Bosch Building Technologies strategy has continued to focus on expanding the division’s capability in systems integration business in the regions.

Bosch Acquisitions

The acquisition of Protec Fire and Security Group, one of the largest system integrators for fire detection and security technology in the UK was completed in December 2021. With nine locations in the UK and the Netherlands, around 1,100 employees and expected 2021 sales of £125 million (around 142 million euros), the acquisition expands its business further in Europe.

The division announced German expansion plans in January 2022 to acquire Hoerburger AG, headquartered in Waltenhofen, Bavaria. Hoerburger offers a portfolio of products and solutions focusing on building automation and energy management. A major focus of its activities is the efficient and sustainable operation of buildings.

The solutions are used in numerous sectors, for example in large industrial companies, healthcare facilities, and retail chains. Hoerburger has more than 200 employees at six locations in Germany and one location in Romania and generated sales of €33 million in 2020.

Paladin will augment the Climatec LLC business, a Phoenix, Arizona-based provider of building technologies in the U.S., serving as a single-source integrator of energy services, building automation and security systems. The company provides consulting, planning, implementation and remote management of comfort, security, safety and efficiency solutions.

Climatec has been part of the Bosch portfolio since 2015 with reported revenues of $190 million in 2014. In December 2021, Climatec expanded its New York and New Jersey operations with the acquisition of RGBS Enterprises, Inc., a specialist in building automation and system integration services. The company currently employs over 900 associates across Arizona, California, Nevada, New Jersey, New York and Texas.

Memoori estimates that Bosch Building Technologies has more than doubled its security systems integration revenues in North America with the acquisition of Paladin.

This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.