ADT Acquires Tech Startup CellBounce

Rhea-AI Summary

ADT has completed its acquisition of CellBounce, aiming to enhance its customer service by offering a 3G-to-4G radio conversion technology certified for AT&T's network. This innovative, customer-installable device is designed to minimize the need for in-person upgrades, thereby streamlining the transition for users affected by the 3G sunset. The device will not only benefit ADT's customers but will also be available to third-party security providers, promoting broader industry adoption. The launch is set for early 2021.

Positive

• Successful acquisition of CellBounce to leverage 3G-to-4G conversion technology.
• The solution reduces technician visits, improving customer service efficiency.
• Potential revenue growth from offering the device to third-party security providers.

Negative

• None.

CellBounce 3G-to-4G radio conversion solution certified for use on AT&T network

ADT to deploy customer-installable conversion solution for 3G sunset expected to minimize the need for in-person, required upgrades

BOCA RATON, Fla., Dec. 10, 2020 (GLOBE NEWSWIRE) -- ADT (NYSE: ADT) has closed its previously announced acquisition of technology company CellBounce following thorough testing of its proprietary 3G-to-4G radio conversion technology, which is now certified for use on AT&T’s 4G cellular network. The user-installable device is expected to reduce the need for technicians to perform the required upgrade in many customer homes before the 3G network sunset. The device also will be made commercially available to third parties, allowing the larger security industry to benefit from this cost-saving radio conversion technology.

“We are very pleased the teams at ADT, AT&T, and CellBounce successfully created and certified an innovative solution to an industry-wide challenge that alleviates the need to send technicians into customers’ homes,” said Jim DeVries, President and CEO of ADT. “The CellBounce solution is expected to be a key part of our customer upgrade strategy in 2021.”

“By minimizing the need for in-home technician visits, CellBounce will help make the migration from 3G as seamless as possible,” said Robert Boyanovsky, vice president of Mobility and Internet of Things, AT&T.

First announced earlier this year, CellBounce is a plug-and-play conversion technology designed to solve one of the home security industry’s biggest logistical and financial challenges in the next year and a half. Many home security customers with 3G radios in their security panels can receive and utilize the CellBounce device, similar to a smart plug, by simply plugging it in to a power outlet near their security panel to enable continued cellular connection well beyond the 3G sunset.

The technology operates by converting 3G signals to communicate on AT&T’s 4G network, and the device can be plugged into a standard home power outlet. The CellBounce unit is equipped with a UL compliant battery back-up, that provides continuity for up to 24 hours in the case of power failure.

ADT worked closely with the CellBounce engineering team for over a year to ensure the solution works seamlessly. CellBounce has been tested and certified to support ADT customers and has received ETL and FCC certifications. ADT plans to deploy the device to ADT customers and offer it for sale to other security providers in early 2021. In addition, ADT is working on solutions to leverage the technology in other industries impacted by the 3G sunset.

FORWARD-LOOKING STATEMENTS
ADT has made statements in this press release and other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties. All statements, other than statements of historical fact, included in this press release are, or could be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are made in reliance on the safe harbor protections provided thereunder. These forward-looking statements relate to, among other things, our successful deployment of a commercially viable CellBounce solution; industry and consumer acceptance of such solution; cost effectiveness of such solution; successful integration of our acquisition of CellBounce; successful post acquisition implementation of the CellBounce solution; and other matters. Any forward-looking statement made in this press release speaks only as of the date on which it is made. ADT undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. Forward-looking statements can be identified by various words such as “expects,” “intends,” “will,” “anticipates,” “believes,” “confident,” “continue,” “propose,” “seeks,” “could,” “may,” “should,” “estimates,” “forecasts,” “might,” “goals,” “objectives,” “targets,” “planned,” “projects,” and similar expressions. These forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to management. ADT cautions that these statements are subject to risks and uncertainties, many of which are outside of ADT’s control, and could cause future events or results to be materially different from those stated or implied in this press release, including among others, risk factors that are described in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the Securities and Exchange Commission, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein.

ABOUT ADT
ADT is a leading provider of security, automation, and smart home solutions serving consumer and business customers through more than 200 locations, 9 monitoring centers, and the largest network of security professionals in the United States. The company offers many ways to help protect customers by delivering lifestyle-driven solutions via professionally installed, do-it-yourself, mobile, and digital-based offerings for residential, small business, and larger commercial customers. For more information, please visit www.adt.com or follow on Twitter, LinkedIn, Facebook, and Instagram.

Media Contact:
Paul Wiseman
paulwiseman@adt.com
561-356-6388

FAQ

What is the purpose of ADT's acquisition of CellBounce?

The acquisition aims to enhance ADT's service offerings by providing a 3G-to-4G radio conversion technology that minimizes the need for in-home technician visits.

When will the CellBounce technology be available to customers?

ADT plans to deploy the CellBounce device to customers and offer it to other security providers in early 2021.

What benefits does the CellBounce device offer?

The CellBounce device allows for seamless migration from 3G to 4G, reducing costs and logistical challenges associated with traditional upgrades.

What impact does the CellBounce acquisition have on ADT's business?

The acquisition positions ADT to improve customer service and efficiency, potentially leading to increased revenue from both direct sales and third-party offerings.