Integrator DTiQ uses surveillance and POS data to offer “smart audit” consultative services for retail and hospitality clients, enhancing employee engagement and reducing theft.

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Most security integration companies are known for their technical ability to sift through the thousands of equipment choices from various manufacturers to pull together the best technology solution for the specific application need of their client.

But it is rare to find an integration firm whose entire business model is built around a technology stack of its own creation. Such is the case of Framingham, Mass.-based DTiQ.

The company combines its own proprietary software with IP camera technology to earn $50 million annually in recurring monthly revenue (RMR) consultation services.

The software system integrates retail point-of-sale (POS) systems with security technology to create “smart audits” for clients to reduce theft, improve the customer experience and enhance employee engagement.

Since its founding 20 years ago, DTiQ has installed its loss-prevention software and data-analysis technology and surveillance systems at more than 35,000 retail and hospitality locations.

Its business model has evolved through recent acquisitions (and a subsequent rebranding) to be more than a deployer of technology solutions, but a bottom-line consultant for its client base, which reads like a who’s who in retail and fast food around the United States.

Drive-Through Intercom Roots

Founded in Los Angeles in 1999 by Sam Naficy, the company, which was originally called Drive Through Technologies (DTT), started out as specialists installing intercom systems for drive-through fast food restaurants.

Eventually, the DTT intercom business model collided with the convergence of the Cloud, which was driven by bandwidth and Internet connectivity. Soon, the company found itself focused on installing IP cameras that integrated with POS systems, still solely in the restaurant niche.

“Data became much more relevant,” says Mike Coffey, CEO. “The old POS systems were just cash registers that printed out receipts. DTT moved into the business of combining the data from the POS system with Cloud-based video. When you put those two together, you can do analysis on the POS data … you can figure out when a restaurant has its busiest times, when employees are doing things they should not be doing, and other data. DTT’s new business model was to install software and surveillance systems, then marry the POS data with the video. And, we actually deploy human beings to look at the data. For the past eight years, that model has been all the growth in the business.”

Specifically, the company’s technology offering is a full bundle of switches, wiring, onsite NVR or Cloud storage connection, and multiple cameras, which are OEM’ed and branded under the DTiQ name.

The software takes the data from the POS system with the permission of the restaurant operator and integrates it with the surveillance video to create a “smart audit.”

“A ‘smart audit’ is a 0 to 85 score that rates how effective a store is operating,” says Coffey. The software spread like wildfire, bringing the company some of the biggest names in franchise restaurants as clients.

Rebranding After Acquisitions

Then, in early 2018, the company acquired Boston-based Loss Prevention Innovations (LPI), which offered similar data analysis services, but focused in the retail channel servicing big names in grocery, clothing, jewelry and shoes.

LPI did not have its own technology, but instead used whatever software and camera data the store owner had installed. However, LPI had a more robust onsite consultation service than DTT, using an 80-person team spread throughout the country.

“While DTT supported many more locations and brands, the 360iQ business really supported one or two big customers. About a year-and-a-half ago, 360iQ had invested a whole lot of money into building a brand new technology stack with the purpose to combine surveillance and POS data analysis. We were debating about doing the same thing, and we decided essentially to buy one instead of updating and rebuilding our own.”

“Enterprise retailers have more of an in-store need for training as opposed to restaurants,” explains Coffey. “If you are a major retailer with stores spread across the country, you cannot afford to employ multiple loss-prevention specialists who are stationed close to the geographical footprint of your stores. You have to constantly train them and coach them. A retailer might have a three- or four-person team to cover 100 stores. Suddenly, they can only visit each store once or twice per year. Our team can visit a store five times per year without really a lot of cost.”

In July 2018, DTT made a second acquisition, buying competitor 360iQ. “It was a competitor, but with a much newer technology stack with better data capabilities,” notes Coffey. “While DTT supported many more locations and brands, the 360iQ business really supported one or two big customers. About a year-and-a-half ago, 360iQ had invested a whole lot of money into building a brand new technology stack with the purpose to combine surveillance and POS data analysis. We were debating about doing the same thing, and we decided essentially to buy one instead of updating and rebuilding our own.”

As a result of the acquisitions, DTT re-branded in 2018 as DTiQ and relocated its headquarters from Southern California to suburban Boston. The company’s consultative services are contractually based, making almost all of the company’s $50 million in 2018 revenues RMR.

Structuring Base Packages

DTiQ does not sell any POS systems; its solution is POS agnostic. “The customer picks whatever point of sale they want to work with. We integrate with 26 of the most popular ones on the market right now; they all have different ways of integrating. That’s part of our secret sauce. Some of them are really hard to integrate with, and some are really easy. At the end of the day, the data’s got to be accurate and right,” says Coffey.

Getting it “accurate and right” as Coffey says requires the use of a sophisticated algorithm in the software that matches the timestamp in the store from each of the POS locations.

The timestamps must be precise to validate the data. The company’s product stack and audit reporting capabilities are presented to clients in packages, tiers and bundles … “like a Chinese menu,” describes Coffey. “We have a quote sheet, and we sell our solution by number of cameras, and then we do add-on services. If you want the analytics, it costs more. Our salesperson has to pick the right components from the different parts of the Chinese menu.”

So, for example, if a restaurant franchisee is not worried about the location’s customer service, but more concerned about the safety and security of the employees, they can select a package of equipment and audit reports that tailored for that.

If another franchise location is more concerned about employee theft, a package can be chosen for that. The base package for every client is some level of POS data integrated with video surveillance.

Coffey says the company leads its sales presentations with a video surveillance system installation, and he says every client is going to have some sort of video surveillance at the location, whether it is an existing system or one installed by DTiQ.

From there, the vast majority of DTiQ customers will sign up for some level of algorithms and analytics to analyze their POS data, typically a report once or twice per month. From there, customers can get more sophisticated if they wish, such as customized reports once or twice per week, or a report focused solely on a particular shift of employees.

“Given the way our technology stack works, the camera is one of the least important elements,” he continues. “We really think ourselves more as a software company, so we’ll work with any kind of modern IP camera and a lot of different analog cameras as well. If we show up at a location, and that location has an IP camera installation that was done just 18 months ago, we can essentially still light up the location with our advanced analytics and our services and our capabilities, but leave all the existing cameras in place.”

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Read more at https://www.securitysales.com/

WASHINGTON, Pa. — Advances in convenience technology don’t just mean operators can install it, walk away and reap automatic benefits.

Convenience store retailers must partner with the right vendors, and smartly and continually utilize the technology. In doing so, they can target improvements in multiple areas, including those tied to the human factor.

“In a world with too many priorities, we like to talk about how to drive the thing that you can control in your business,”

“In a world with too many priorities, we like to talk about how to drive the thing that you can control in your business,” said Mike Coffey, CEO of DTIQ, a provider of intelligent video-based solutions combined with advanced analytics to the retail, restaurant and c-store industries.

Coffey noted that while retailers can’t control how many cars drive by their store, they can control what happens when a driver stops on their lot and enters the store. The goal is to increase profit by focusing on what you can control — giving each customer the best experience possible, he said during a recent webinar hosted by Convenience Store News and DTIQ.

DTIQ combines intelligent video (in the form of next-generation surveillance) and advanced analytics to deliver immediate, actionable insights and create customizable, scalable solutions for retailers.

Presenting alongside Coffey in the webinar was Colin Dornish, director of operations for Washington, Pa.-based Coen Oil Co., a DTIQ client that operates more than 65 c-stores in Pennsylvania, West Virginia and Ohio under the Coen, Ruff Creek Markets and CoGo’s banners.

Coen Oil turned to DTIQ following a period of upheaval; a time when it was undergoing a massive overhaul of its locations. As the company was “setting the tone” for what it wanted to be in terms of store offer and branding, Coen found itself operating many stores with unique challenges, ranging in size from 1,100 square feet to 5,500 square feet.

Foodservice was a particular priority and concern, as the competition in Coen’s market includes such food-focused chains as Sheetz and GetGo.

Foodservice is “definitely where the industry’s headed,” Dornish said.

By adding DTIQ’s solution to its foodservice stores — which could fit more cameras than the company’s heritage stores — Coen is now able to keep an eye on the physical area where food is made via surveillance, which allows it to monitor preparation procedures and food safety.

Coen also reviews stores’ transactional data from the point-of-sale, rolling it into a business intelligence tool to determine how the chain is doing in regards to sales, profitability and other customer-related data points. The company had examined this data in the past under its old system, but lacked the ability to have the data reviewed at a different level.

“That’s really where DTIQ came into play for us,” Dornish said, describing Coen’s prior approach to surveillance as “fragmented.” The retailer previously used various off-the-shelf solutions, with individual store managers serving as the primary users. This made reviewing the data “an onerous task from a store-level perspective” when incidents occurred.

Utilizing DTIQ’s solution as a remote management system, users have shifted from store managers to office personnel and district managers.

From a human resources and safety perspective, the video data and analytics provided by the solution offer more review for less unnecessary labor, according to Dornish.

He noted that a particularly helpful aspect of the DTIQ solution is Smart Audit, which lets Coen examine data every week to two weeks and use prescriptive feedback to measure things such as store safety, cleanliness and other factors. Each store receives a score, and that score can be measured over time to review performance.

Having a non-based review of sales performance, adherence to policies and procedures, safety initiatives and more has been “a total game changer,” Dornish said. Remote auditors are able to identify issues that otherwise may have escaped attention. Plus, connecting the manager bonus program to the results of the audit has helped Coen share the successes of a good audit and get to the bottom of a bad audit.

“It really fundamentally shifted pre- and post-implementation,” he said.

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Watch a replay of the webinar here.

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Read more at https://csnews.com/

“We deliver critical insights to our customers – giving them the key metrics to maximize profit, create a better work environment and improve their customer experience.”

Mike Coffey, CEO of DTiQ

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Security is imperative for any business; after all, how can you be profitable if you can’t protect your assets? Luckily, video systems are moare intelligent and effective than ever. The best solutions now offer computer-like functions and features, like motion sensors and automatic mobile notifications. Some even let you automatically contact law enforcement instantly if need be. Technological development has also lead to more efficient ways of managing recording and storage, as well. Now business owners have access to immensely powerful solutions that can even drive proactive business improvement at affordable prices.

In light of the above-mentioned scenario, we’re thrilled to present DTiQ.

DTiQ provides intelligent video-based solutions and loss prevention services for the restaurant and retail industries. They combine state-of-the-art equipment with advanced, cloud-based analytics and managed services. They provide data driven insights to their customers via their industry leading Smart AuditTM reports.

The company has moved beyond “static video” to a new way of harnessing intelligent data via video and audio. DTiQ leverages video and audio feeds to monitor things like store safety, temperature, back door and safe door triggers and smart device integration. The company uses its advanced analytics to integrate directly with third-party POS systems and provide insights. Additionally, the company has a services arm that offers forensic investigation, pre-employment screenings, background checks and even an employee tip line.

The DTiQ services team combine all this data to deliver a proactive managed service to the customer. So, the customer receives specific actionable intelligence that can add value to their business.

“DTiQ combines intelligent video, advanced analytics, and expert services to deliver an unparalleled performance improvement solution to over 45,000 customers in the retail, restaurant, and convenience store industries.”

The company was incorporated in 1998 and is headquartered in Boston. It has additional offices in Las Vegas, Pasadena and Gliwice, Poland.

Mike Coffey, DTiQ CEO, spoke exclusively to The Silicon Review. Below is an excerpt.

Rewind: Taking Flight

DTiQ was founded by Sam Naficy two decades ago. The company began to grow quickly, attracting outside investment. After introducing intelligent video solutions, DTiQ expanded beyond the restaurant market, securing customers in the c-store and retail industries.

Recently, the company has expanded through acquisitions in addition to organic growth, which has added significant scale and technological capabilities as well as over 15,000 retail locations. Finally, DTiQ is beginning to build an international footprint, particularly in the EMEA region.

First Project Roll­on: A Terrific Feat

Given that DTiQ has a 20-year history, its early days of the business were actually performing a very different service than it provides today. Like many startups, DTiQ evolved and eventually found a lot of traction with the restaurant group – Subway –in trying to help run its restaurants using video, sensors, and data. The company evolved that as well and now supports over 45,000 live locations across restaurants, retailers, and convenience stores.

DTiQ: ‘Building a Culture of Sustainability’

DTiQ’s products are designed around driving sustainability for its customers. The services it provides help operators run more efficient and healthier businesses with lower levels of waste. The company is simultaneously allowing businesses to maximize financial and environmental sustainability by providing them with better business practices.

“Our product truly establishes a win­win partnership with our customers. By helping them run healthier and more sustainable businesses, we are enabling them to grow and expand their offerings; which in turn leads to new business development for us.”

“As a result, I really see our culture of sustainability as a core of our business that will allow us to continue growing in the coming years.”

DTiQ: ‘Going Above and Beyond’

DTiQ is unquestionably a leader in this industry. In fact, DTiQ’s business offering was the first of its kind and it has consistently rolled out new innovations that have become industry standards. In addition, The company has led the way in establishing industry best practices and values that have helped define standards of service for the entire industry. “We take pride in having gone above and beyond for our customers.”

Factors: ‘That Make DTiQ Stand Out From the Competition’

The people at DTiQ are the greatest asset it has. Unequivocally!

“We’re successful because our team is outstanding and works incredibly hard to take care of our customers. The second factor that I would say has been pivotal to our recent growth is our technology. At the end of the day, your business is only as strong as your core product, and we’ve been able to demonstrate that the business intelligence technology we sell delivers a strong ROI for our clients.”

Third, DTiQ has also been able to demonstrate to its customers that the services it offers are the best in the business. “We are able to remove time consuming tasks from our customer. We allow them to focus on their business, while we deliver data­driven insights on specific areas for improvement.”

The fourth asset DTiQ has is its economic moat. “We have a significant market share in the restaurant and retail industries that comes from having done very well by a lot of big brands, and that has made it harder for our competition to break into the market. As we’ve rolled out new products and technology, this competitive advantage has only widened.”

Finally, the fifth asset is DTiQ’s leadership team. “We’ve assembled an executive leadership team with decades of leadership experience and institutional knowledge so that we can successfully deliver value to our customers and help them expand their business.”

DTiQ: ‘We Consistently Deliver Value to Our Customers’

DTiQ has been able to forge a positive relationship with its customers by consistently striving to deliver on its promises to them. “When we occasionally do miss­the­mark, we work hard to make things right as quickly as possible.”

“I think our reputation benefits from the tight­knit community of the industry we serve. To date, a lot of our business has been referral driven. That business model only works if your reputation is strong.”

DTiQ’s reputation is strong because of its products. “We consistently deliver value to our customers. That’s paramount to building a positive reputation in the industry we serve. You can do everything else right, but if your product doesn’t deliver ROI, your reputation will falter.”

Future Arrangements: Sky’s Limit

DTiQ’s space is incredible and it plans to continue to do what it does best, which is “to take great care of our customers”.

Mike Coffey: An Entrepreneur at Heart

Mike Coffey was named CEO of DTiQ in January of 2018. He manages day-to-day operations at the company and develops strategic initiatives to grow the business. Mr. Coffey has extensive experience as a technology executive, having successfully led multiple companies in the IoT, M2M, and SaaS spaces.

Mr. Coffey holds a BS in Computer Science from Rensselaer Polytechnic Institute.

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Read more at https://thesiliconreview.com/

Inventory shrinkage, food waste, poor guest experiences, and employee turnover—a consequence of incidents such as shoplifting, employee theft, and poor management—are a big deal in the retail and hospitality industries. Improving these does not simply increase a location’s profitability, but is a necessity for long-term survival in today’s world. According to the recent Sensormatic Global Shrink Index study, in 2017 alone, a global shrink rate of 1.82 percent cost retailers a whopping $100 billion—nearly $42.49 billion for retailers in the U.S. And, according to Goldman Sachs’ Profiles in Innovation—“how brick and mortar stores employ new technologies and new models may determine how they survive.”

Executive Team Mike Coffey CEO

Mike Coffey, CEO

Ensuring the effectiveness of store assets, employees while acknowledging the guest experience and reducing loss is paramount for any type of brick-and-mortar business. This is where Massachusetts-based DTiQ’s forte lies. By delivering intelligent video-based surveillance and proactive improvement solutions and services, the company helps retail and hospitality businesses manage and improve their performance and profitability. “We combine state-of-the-art technology and use it in a proactive way to answer the question of ‘why’ a particular trend is occurring,” says Mike Coffey, CEO of DTiQ. The company’s performance improvement solutions cut through the clutter and provide these businesses with key metrics that matter.

Founded in 1998 as DTT, and completing their first two acquisitions in 2018 of LPI and 360iQ, the combination was recently re-branded to DTiQ to reflect its evolution into an all-encompassing performance improvement solution provider. “The new name emphasizes our commitment to deliver the broadest based solution that adds incredible intelligence to the end customer,” adds Coffey.

We combine state-of-the-art technology and use it in a proactive way to answer the question of ‘why’ a particular trend is occurring

DTiQ’s smart business intelligence solution helps brick-and-motor store owners and managers track conversions, speed of service, dwell times, and loss prevention. By combining surveillance with pertinent data analytics, the platform enables users to authenticate transactions and better manage the store with just a few clicks. It brings together video, live sales, alerts, indicators, and reports to create a comprehensive picture of the entire business.

The company’s auditing program, SmartAudits, on the other hand, uses video-based audits as well as in-person improvement programs to help store managers identify limitations in guest experience, speed of service, and employee engagement, to name a few. “Our trained auditors review data and video from a particular store to identify areas of improvement and generate a critical dashboard that managers should pay attention to, because a manager can’t be in all locations at all times,” specifies Coffey.

A prominent client of DTiQ, an American clothing and accessory retailer, was able to accelerate its profitability as well as improve store performance, customer experience, and loss prevention by deploying DTiQ’s solutions. “A few years ago, the retailer experienced a huge employee turnover which was a result of poor operational and management procedures across their stores,” reveals Coffey. DTiQ implemented an operational improvement program by analyzing and auditing each store’s performance. The result: a dramatic increase in employee retention and a surge in improved guest experience.

DTiQ has amassed over 45,000 customers—including leading corporations and franchises such as Adidas, Vineyard Vines, Subway, McDonald’s, Dunkin, Yankee Candle, and Pandora—across several locations around the world. Led by a team of forward-looking executives who each possess approximately 20 years of expertise and experience, the company helps retailers and restaurateurs improve over eight million consumer experiences daily. Forging ahead, the company intends to continue delivering innovative solutions and exceptional services to clients. “We are working on two new offerings—a live-interactive product and a guest experience module—both of which will help enhance engagement with customers,” concludes Coffey. With a firm foothold in the U.S., DTiQ will soon begin its expansion into Europe.

In an exclusive interview with LP Magazine, DTT’s Chief Executive Officer Mike Coffey explained how today’s announcement of their acquisition of EZUniverse®, which includes 360iQ, a data analytics and video surveillance platform, expands the company’s intelligent video-based surveillance and loss prevention services to further improve retail operations.

“The acquisition of EZUniverse provides a significant expansion of our products and will deliver dramatically enhanced capabilities to our customers,” said Coffey, “which will help our loss prevention clients do a better job of protecting retail assets. Beyond that, the comprehensive analytics, video analysis, and big data capabilities will enable them to impact much more than just asset protection by further improving operations in areas like enhancing the guest experience that is so important in today’s retail environment.”

Coffey added, “Expanding our technology platform combined with our acquisition of LP Innovations (LPI) earlier this year gives us a significant advantage over other technology providers. With LPI’s loss prevention professionals out in the field working with store managers, we can offer our clients hands-on assistance with these tools to greatly benefit store operations.”

Concurrent with the acquisition, EZUniverse CEO Leszek James was named president of the EZUniverse business at DTT. “We are thrilled to become part of the growing DTT family and continue to develop our exceptional operational tool with DTT and expand our combined customer base,” said James. “One of the driving factors of the acquisition was the alignment that the teams at DTT and EZUniverse felt for each other. We now have a unique group of people dedicated to helping the restaurant, quick service, and retail markets run better stores.”

DTT has had a long history of organic growth that has been enhanced with the two recent acquisitions. Sam Naficy, the founder and chairman of DTT, remarked, “this acquisition represents continued board support and substantial investment by the existing shareholders in the long-term success of DTT. We have the best products, people, and the largest and most well-served customer base in what we do. We are committed to using M&A to enhance our platform to create unparalleled value.”

DTT supports more than 42,000 clients, including McDonald’s, Subway, Dairy Queen, Burger King, Arby’s, Taco Bell, and Auntie Anne’s. DTT protects trillions of dollars in assets and oversees nearly 2 million employees every day.

EZUniverse was incorporated in 2009 and is a technology company focused on building and implementing turn-key Business Management Systems that use big data and video surveillance to empower companies to improve operations. The EZUniverse mission is to give brands the technology, tools, and support to increase profits at a cost far lower than the monetary benefits realized. EZUniverse provides one single view of any enterprise, which allows our clients to use technology and management support services to quantify, measure, and act on issues in real time, anytime, anywhere.

“It’s been an exciting year for DTT with two strategic acquisitions and expansion of our executive team,” said Coffey. “The team at EZUniverse has acquired significant customers and built a scalable platform that truly improves store operations. When combined with MyDTT and LPI’s loss prevention services, DTT has a truly unique and comprehensive offering, enabling our customers to increase their operational efficiency, while integrated with intelligent video.”

Steve May, CFI, retired CEO and president of LP Innovations (DTT), has been recognized by LPM for excellence in partnerships.

“I started my loss prevention career working for my father’s small family loss prevention security business,” said May. “This was a great learning experience, providing an opportunity to work in a variety of retail, wholesale, distribution, and manufacturing environments. I learned very quickly that as a service provider, customers could be very demanding-but also very fair.”

In 1988, May moved to J. Baker, which he considers the most important move in terms of personal and professional growth. Spending ten years with the company, he climbed the career ladder to eventually become first senior vice president. In 1998, he became a president and CEO at LP Innovations (LPI). After running LPI for over twenty years, he offers some advice for up-and-coming solution providers.

“Never assume,” he said. “Solution providers must actively engage with customers on the value of our service, whether or not we’re meeting expectations, and what we can do to help exceed expectations. Always ask how you’re doing, provide customers different ways to comment on their experiences, and act quickly on their recommendations. Most customers genuinely appreciate efforts to raise the bar. You have to believe that the services provided will help them become a better, more profitable business. Rather than simply trying to sell a product, focus on being a genuine partner. Execute, act on their behalf, and become a vital part of their success.

“Being a vendor is not a dirty word. You need to believe in your bones that what you’re providing is critical to your customer’s success. It’s your obligation to become a vital part of your customer’s team. You need to be engaged with your customers, recognized as a trusted advisor, a source of information, a problem solver, a professional colleague, and most importantly, a friend.”

BOSTON and LOS ANGELES—DTT, a provider of intelligent video-based surveillance and loss prevention services based here, recently announced the acquisition of substantially all assets of EZUniverse, including 360iQ, a data analytics and video surveillance platform. EZUniverse CEO Leszek James was named president of the EZUniverse business at DTT.

DTT is also taking on the company’s approximately 70 employees, including the entire senior leadership team, bringing DTT’s total employee count to more than 400.

“360iQ is a fantastic technology platform with 50 different application developers working on it,” DTT CEO Mike Coffey told Security Systems News. “It has about 7,000 sites running on the platform today, so it gives us some scale and brings our site count to more than 43,000 today, while giving us a presence in Europe.”

He continued, “When combined with MyDTT, and our loss prevention services, DTT has a truly unique and comprehensive offering, enabling our customers to increase their operational efficiency, while integrated with intelligent video.”

EZUniverse is a technology company focused on building and implementing turn-key business management systems that use advanced analytics and video surveillance to empower companies to improve operations. EZUniverse provides a single view of any enterprise, allowing its clients to use technology and management support services to quantify, measure, and act on issues in real time, anytime, anywhere.

“EZUniverse is thrilled to become part of the growing DTT family,” James said in the announcement. “We are excited to continue developing our exceptional operational tool with DTT and to expand our combined customer base. One of the driving factors of the acquisition was the alignment that the teams at DTT and EZUniverse felt for each other. We now have a unique group of people dedicated to helping the restaurant, quick service, and retail markets run better stores.”

When combined with the LPI deal earlier this year, the EZUniverse buy gives DTT “a unique set of offerings,” said Coffey, who noted that the two acquisitions have been very important to the growth of the company this year.

“We are focused on organic growth as our most important value driver, but we look at M&A as a way to essentially accelerate that,” Coffey explained. “M&A is an important tool to help get into new markets, to get new products and services, and in our case, it has helped us do both: It has brought an incredible set of retail customers to us with 15,000 retail locations that we didn’t have when we started the year, and an incredible base of products and services around technology and big data analytics that we didn’t have at the beginning part of the year.”

Sam Naficy, the founder and chairman of DTT, added in a prepared statement, “Our organic growth, combined with using M&A to enhance our platform, is creating unparalleled value.”

Some of DTT’s higher profile clients include McDonald’s, Subway, Dairy Queen, Burger King, Arby’s, Taco Bell, and Auntie Anne’s.

YARMOUTH, Maine—Influenced greatly by the level of M&A activity each year, the security landscape is constantly changing and evolving. With so much happening in the M&A space right now within security, there are opportunities for companies to grow—even to expand their capabilities and technology offerings—through strategic acquisition.

“Over the past few years we’ve seen an acceleration of M&A activity in the security industry, including a number of large deals that have reshaped the overall landscape,” John Robuck, Capital One’s managing director of security finance, told Security Systems News in an email interview. “Apart from the larger deals, though, there are also numerous opportunities for small and mid-sized businesses to leverage M&A to grow their businesses.”

DTT CEO Mike Coffey told SSN in an email interview that there are several driving factors to this increase in M&A activity, most prominently financial and industry dynamics.

“The financial dynamics right now have been driven by low interest rates, which we’ve all heard a lot about, and frankly that means more capital availability for good quality businesses,” said Coffey, noting that industry dynamics are even more important to DTT.

“First and foremost, there is massive opportunity behind video, which is being driven by increased use cases, analytics, and the ultimate value and ROI achieved by the end customer,” he explained. “If you combine this opportunity with the fact that the security industry has historically been a very traditional industry—and perhaps even viewed as slow to change by some—then M&A becomes a good tool to catapult a more traditional player toward the future.”

DTT worked with Capital One during its acquisition of LP Innovations, and Coffey said that the LPI deal is a good example of DTT’s strategy when it looks at a potential acquisition.

“When doing an acquisition, we are typically looking for complimentary services or markets,” he said. “LPI has the distinct advantage of providing both. This means that we can go to both customer bases within DTT/LPI and offer them a tremendous set of services by utilizing video, analytics, and DTT’s software, or utilizing LPI’s prescriptive analytics and field services. We now offer a more comprehensive set of services in this space than anyone else, and we can do this for both small operators as well as for very large organizations at scale.”

He continued, “The DTT history comes from the hospitality space where we deliver a B2B solution, but targeted at those organizations who have a heavy consumer customer base themselves (we think of this as B2B2C). Now with LP Innovations (LPI), we have expanded both our loss prevention capabilities as well as our retail focus while staying in a similar model.”

Robuck added, “We have also seen M&A used as a tool to develop new or existing technologies. From expanding into new regions to acquiring new, adjacent capabilities to offer clients, with the right partners, companies can strategically pair M&A with their organic growth strategy.”

Both Robuck and Coffey stressed the importance of companies doing their due diligence when vetting a potential acquisition.

“If I’d kept count for every time someone offered a ‘new technology’ as an M&A opportunity over the last 10 years, I’d have a pretty big number,” said Coffey. “We think the key to new technology M&A is going with proven, scalable technologies. A lot of our industry is dealing with life, health and safety issues, or dealing with applications that have real-time or daily needs. Therefore, we would argue that a high premium is placed not just on new technology, but on new technology that is proven and operating with some scale.”

Coffey also pointed out that a strategic acquisition could bring a company more value beyond traditional security, which he sees as a growing trend.

“We think that a lot of the opportunities are going to be ‘beyond security,’ and this is a mantra that we really live by,” Coffey said. “While we have surveillance roots, we think the future opportunities are right where we play—at the intersection of analytics, video, and SaaS solutions that offer value in terms of loss prevention, guest experience, merchandising, virtual management presence, and more.”

Robuck also sees this trend of companies offering more than just security, noting, “We are continually seeing our clients find ways to deliver new value above and beyond many security basics.”

He continued, “In this rapidly evolving environment, security executives must maintain high levels of awareness in the market to keep up, as change also brings opportunities for those businesses willing to look ahead and grow knowledgeably—particularly by leveraging M&A.”