SECURITY solutions provider, Ademco Security Group, on Thursday announced its first acquisition in Vietnam, as part of a wider aim to boost its overseas revenue by 50 per cent over the next three years.
This deal was done in partnership with International Enterprise (IE) Singapore, and involves a 60 per cent acquisition of high-end integrated security solutions provider, TNT Technologies Joint Stock Company (TNT). The remaining 40 per cent will be maintained by TNT's existing owners.
Ademco's venture comes as the firm seeks to build its presence in the country to "capture Vietnam's growing needs for integrated security solutions in business operations and management", IE Singapore and Ademco said in a joint statement on Thursday.
They added that overseas investments account for about half of Ademco's S$40 million annual turnover, but did not reveal the amount spent on the transaction due to a non-disclosure agreement.
Ademco's stake in TNT marks its seventh addition to the company's geographical footprint across Singapore, China, India, Malaysia and the Philippines. The firm also plans to establish a global regional presence in 14 markets by 2020.
Established in 2005, TNT provides security solutions to clients across various sectors including aviation, banking and retail. Notable clients include the Hanoi Noi Bai International Airport and Samsung Electronics Vietnam.
With this latest acquisition, Ademco will be able to tap TNT's expertise, build reach through its MNC client base in Vietnam, and strengthen operational efficiencies, IE Singapore and Ademco said.
To help Ademco make a clearer assessment of Vietnam's market potential and better time its entry into the market, IE Singapore provided in-market information on the industry landscape, and facilitated the pre-acquisition due diligence process. Beyond Vietnam, Ademco is partnering IE Singapore to scale up in other Asian countries including India and China.
Said Ademco's group managing director, Toby Koh: "Overseas expansion has always been our catalyst for growth, and we are very bullish about the opportunities that Vietnam presents."
"Not only is there a strong demand for integrated security management systems by large MNCs with regional operations in Asia, we also see great potential in the large local enterprises and government bodies, who are slowly beginning to recognise the advantages of unifying, and enhancing their security efforts to achieve greater operational efficiencies at a lower cost," he added.