Business Services Industry
Ameritech alarm bell: the price of security.
Crain's Chicago Business, November, 1997 by Cahill, Joseph B.
Ameritech Corp. is finding plenty of headaches in the peace-of-mind business. A three-year buyout binge has made Ameritech the second-largest player in the security monitoring business, with about a million subscribers. Industry leader ADT Security Services Inc. of Boca Raton, Fla., has about 1.4 million customers.
Ameritech sees the fragmented industry as ripe for consolidation and primed for annual growth of about 15%. But running the business has proved more difficult than doing deals. And new competition for acquisitions is pushing prices skyward. Meanwhile, the Ameritech security unit - known as SecurityLink from Ameritech - is on its fourth president in three years. Despite a plan to focus on residential security companies, Ameritech in 1995 acquired a...
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