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business. I have always main-
tained that biometrics was more a
complementary technology, and
this has proven to be the case. I
believe this is also the case with
what many are today predict-
ing are disruptive technologies
including smart mobile devices,
smart locks or newer biometric
technologies. In my opinion, the
industry will benefit from all of
these as they become parts of com-
plete solutions, allowing a broader
number of end user companies to
utilise security solutions to provide
the right value for the required
application.
What are the key elements
of success? If you could pick
the most important things to
duplicate every time you make
an acquisition or start a new
venture, what are they?
First and foremost, have a good
strategy. Communicate this to the
three key stakeholder groups; cus-
tomers, suppliers and employees.
Back this up with good products
and unparalleled technical support
and customer service. Execu-
tion is the challenge you face on
a day-to-day basis. By providing
the right leadership and culture
within the organisation(s), you can
recruit and cultivate leaders and
team players to allow you the best
opportunity for success. And of
course, a little luck never hurts! n
market value chain. The key to
this strategy is a belief that using
ACRE portfolio company Mer-
cury hardware (control panels) as
a foundation for the consolidation
provides a unique opportunity to
offer a more "open" environment
that is highly desired by both the
end user and consulting commu-
nities. Bolt on acquisitions will be
much easier when only the "front
end" software is proprietary.
During my tenure at HID, and
then at Assa Abloy, I led manage-
ment teams completing well over
20 acquisitions not one of which
failed. This proven track record,
along with teaming up once again
with former executives/colleagues
that made up those past manage-
ment teams, will enable us to
search out the right targets at the
right valuations, execute on inte-
gration of operations, and recruit
and retain top management as we
grow in a controlled and profitable
manner.
Ten years ago you stated that
biometrics was not a panacea,
but a powerful tool to be used
in combination with other
technologies to provide effective
security. Does this still hold true
for you today?
Biometrics was viewed as a
potential disruptive technol-
ogy. Many predicted it to be the
end for HID's card and reader
public infrastructure, educational
facilities at every level, and for all
businesses from small to medium
sized enterprises to the largest
corporate end users. And integra-
tion of sub systems is as important
as ever, particularly of video and
identification.
And what about application-
related trends?
Convergence of the physical
and digital worlds, now inter-
twined and "managed" via smart
applications, drives demand for
new systems capable of offering
controlled access to both domains
seamlessly while supporting all
corporate functions while main-
taining easy operation.
And finally Technology-
related trends?
Technologies transformed
by the digital revolution have
matured and are increasingly be-
ing adopted in the slow to change
security industry. The use of video
monitoring and management has
exploded, as has the need for inte-
gration of video and access/alarm
monitoring. The use of mobile
devices to manage these systems is
being demanded by busy security
executives and protective forces.
These changes are helping drive
market demand.
If these factors and reasons to
invest are embraced and recog-
nised industry-wide, how will
you and your team do it differ-
ently and better than others?
As I indicated earlier, we
believe we will be successful
because of our past experience and
a very different but focused ap-
proach. Our approach is to focus
primarily on consolidation of the
highly fragmented "OEM" step
in the electronic access control
market entrants on the scene. I
believe this creates consolidation
opportunities for companies with
the requisite industry knowledge,
technical competence and market
experience. We have all of these
at ACRE and Vanderbilt, and,
because we are well financed, it is
reasonable to expect we will grow
our two platforms both organically
and through acquisition.
How would you characterise the
current state and positioning of
the security industry?
In spite of the fragmentation,
the security industry has been
and continues to be a steadily
growing business. The opportunity
to leverage this, while simultane-
ously consolidating and integrat-
ing the highly fragmented Access
Control "OEM" segment, is an
opportunity we have analysed and
are executing on. In many cases,
large multi-national companies
that have consolidated and inte-
grated security products into their
product portfolios have produced
inconsistent results. We believe
that both our experience and our
approach will provide for a very
positive result.
Are there key reasons today for
investors to look at opportuni-
ties in the security industry with
re-invigorated interest?
There certainly are and to
name the most significant, I would
differentiate between the market-
related, application-related and
technology-related categories of
market trends.
So what do you mean by
market-related trends?
Security has become main-
stream, and as a business, it has
become ever more important
for organisations to protect their
most valuable assets. A decade or
two ago we were most inclined
to focus marketing efforts on the
largest corporate end users and
government sectors. Today, not
only in the States, where a CSO
function has been long-established
in the corporate world, secu-
rity investment is on the rise in
every market segment; hospitals,
Security News Every Day
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the
interview
Joseph Grillo, CEO of ACRE LLC & Vanderbilt Industries:
"Thetimeisrighttoinvestinthesecurityindustry"
Facts about Joseph Grillo
Joseph Grillo began his career in the security industry in the early
1980s and, after a rapid rise working for major players across the
sector, he became President of HID Corporation. The company grew
from a $15M card and reader company to the dominant $100M
industry leader with their President successfully leading the effort
to sell the company to Assa Abloy in 2001.
At Assa Abloy, he led the Identification Technology Group and
completed more than a dozen acquisitions, primarily in Europe. In
2005, he was promoted to Executive Vice President of the parent
company and appointed as President of its Global Technology
Division, including HID, Hospitality and Besam Automatic Doors. In
that role, he successfully managed the $700M division with 3,000
employees in 29 countries.
Joseph Grillo retired from Assa Abloy in 2007. In 2008, he was
recruited to restructure and eventually sell the assets of Digital
Angel Corporation. In 2012, Joe and his former colleague Will West
formed ACRE, LLC as a platform to initiate acquisitions in the elec
tronic security industry, with a special focus on access control.
d e t e k t o r i n t e r n a t i o n a l · 5 1
Our approach
is to focus
primarily on
consolida
tion of the highly frag
mented "OEM" step in the
electronic access control
market value chain.