Alarm.com IPO a watershed moment for the connected home market
BY JOEL GRIFFIN: There was a time in the residential security market when having home automation features to go along with window and door contacts and motion detectors was simply a “nice to have” rather than a “must have” offering. The industry has evolved to the point, however, where even the term “home automation” is passé, having given way to the more commonly used terminology of “connected home” or “smart home” space in which security is part of much bigger overall solution for today’s homeowners.
The growing prevalence of this technology was further reinforced late last month when Alarm.com, one of the dominant players in the smart home space, launched an initial public offering on the NASDAQ.
According to John Mack, executive vice president, co-head of investment banking and head of mergers & acquisitions at Imperial Capital, which acted as a co-manager on the offering, the IPO serves as a “strong validation” for this paradigm shift that has taken place with regards to the integration of home security with automation and where the market could eventually go.
“I think it is very important for the overall security alarm industry to see what has really been the leading player in home automation software and has really played a key role in enabling the home automation side of this industry to be able to go public at a very attractive valuation and get a lot of very positive attention from the best of the investment community,” explained Mack. “A lot of the validation that came with a big valuation for Alarm.com is effectively a view of the potential for the whole industry.” Cont'd...
This post does not have any comments. Be the first to leave a comment below.
Post A Comment
You must be logged in before you can post a comment. Login now.