What’s Driving Consolidation (And What it Means for Integrators)

The current wave of consolidation among security equipment manufacturers will continue, driven largely by the sector's fragmentation, a new research report predicts. The study, from Memoori ltd., a U.K.-based research firm that follows the building automation sector, found that 50 percent of the companies in the security products industry lack the economic size to remain viable beyond the short term, and for many, acquisition will be the only alternative to dissolution. "There will be marked growth through mergers and acquisitions over the next four to five years," said Allan McHale, pictured, a director at memoori and author of the report, Survey of the Security Business 2009 - Shape, Structure & Consolidation. "There will be growth in mergers and acquisitions despite lack of money to finance them," he said, adding that many deals may be stock transactions. "And it will take place in a climate that's down-turning in some market sectors," McHale said. "Exit prices will […]

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