Aussie Telco Giant Telstra Buys Into SNP Security
Telstra is reported to have paid between $A40 million and $60 million to buy into SNP Security’s back-to-base alarm and surveillance business.
Australia’s dominant telco and SNP, thought to be the third largest security company in Australia, will form a new subsidiary called TelstraSNP Monitoring.
Telstra business group managing director Will Irving has told the Australian Financial Review that Telstra will own slightly more than 50 per cent of TelstraSNP Monitoring but day-to-day operations will largely be managed by SNP staff. SNP’s existing tens of thousands of monitored security customers, who purchase CCTV monitoring and alarm systems from the company, will transfer to TelstraSNP.
“The market for back-to-base alarms in Australia is potentially very large because a lot of businesses use them but only to a smaller degree than we think is possible,” Irving said. “There’s phenomenal growth in video technology and the ability to do analytics on video plus a whole range of other monitoring and telemetry.
“I will be the chair of the new entity and Tom Roche SNP Security’s managing director will be the initial MD of the joint venture … It’s not a precise 50-50 joint venture.”
As has been predicted in SEN for the past couple of years, and in a move that mirror events overseas, Telstra customers will be offered bundled alarm products as part of their existing phone and internet services.
Irving told the Australian Financial Review that Telstra spent “low tens of millions” buying into SNP, market sources indicated the move was likely worth between $40 million and $60 million.
SNP is one of Australia’s most venerable full service security providers and the company’s canny MD Tom Roche looks to have decided a smaller percentage of a vastly bigger pie offers SNP best future alarm monitoring revenue.
Roche says that the partnership allows SNP to focus on its core business while building capability in monitored security.
"SNP Security is a fifth generation family company with a more than 90 year history of delivering innovative, unexpected security solutions to safeguard homes and businesses across the country," says Roche. "We have developed a reputation for leading the industry in both technology and service, as demonstrated by our close working relationships with some of the country's largest security clients, including Sydney Airport and Sydney Trains."
Roche says the partnership is the latest in a string of successes for SNP and cause to celebrate the rich history of the company.
"In the past twelve months, SNP Security has undergone a journey of innovative cultural change. This has included the launch of our new brand ethos 'Expect the Unexpected. We Do.' and the implementation of a wide range of initiatives and security solutions that have challenged perceptions about what a security organisation can be," says Roche.
"SNP Security has taken the lead in driving a new and innovative culture to ensure the company delivers unexpected levels of service to its employees and customers. This has resulted in SNP becoming an adaptive and agile customer service-centric organisation focused on delivering exceptional customer experiences."
"I am very pleased with the achievements and the trajectory of SNP Security at this important time for the business," says Roche. "With my sons joining the business in 2014, I look forward to a fifth generation of the Roche family playing a part in the ongoing success of SNP."
Given Telstra’s complex relationships with multiple other electronic security suppliers in Australia as infrastructure provider, the news is going to have a far-reaching impact on many businesses over the next few years. ♦