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the Bloomberg Radio Pluck dappen, Bloomberg

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got gone. This is taking

0:22

stock Um Kathleen Hayes along

0:25

with pim Fox. A merger

0:27

Allied Barton Security Services Universal Services

0:30

of America finalized today, creating

0:32

Allied Universal, the largest security

0:34

company in North America. Coming

0:37

up, CEO, Steve Jones. Do

0:39

you know that the security services industry

0:42

is over twenty five billion dollars

0:44

each year in the United States. We're gonna

0:46

be talking about the security industry with

0:49

the chief executive Allied Universal.

0:52

Right now, Let's go to Charlie Palett to the Bloomberg news

0:54

room with the Bloomberg business And thank

0:56

you Pam, Thank you, Kathleen. We are brought to you by

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Smarter, Connect Better. Donald

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Trump and Hillary Clinton will start getting

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top secret intelligence briefings as

3:09

early as this week. National Intelligence

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Director James Clapper says the briefers are ready

3:14

and the top three issues will likely be Islamic

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extremism, Russia, and cyber

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threats. Federal health officials are

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advising pregnant women to avoid travel

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to a small section of Miami now

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that fourteen cases of zeka transmitted

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from local mosquitoes have been detected.

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CDC director Dr Tom Frieden

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has more. We do expect that additional

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individual infections will be reported.

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There are undoubtedly more infections

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because most people infected with secret

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don't have symptoms. Two people are dead

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Executive Alan Kittleman toward the damage.

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It looks like a movie.

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More than six inches of rain fell in just two

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hours. Protesters gathered in Lower

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Manhattan today calling for an end to police

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sprutality and the firing of nyp

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D Commissioner William Bratten. About one

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hundred members of the group Millions March

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NYC went to City Hall Park

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to push for greater police accountability.

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They're calling for an end to Bratton's Broken

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Windows policy, which is aimed at cracking

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Global News twenty four hours a day, powered

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I'm Jil Schneider, and this is Bloomberg Charlie,

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and we thank you and again recapping SMP

4:32

five hundred index down five to

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a drop there of three tenths of one

4:39

percent. I'm Charlie Peloton, that's

4:41

of Lombard Business Flash. You're

4:46

with Kathleen Blobd

4:48

Radio security. In an era

4:51

of potential terror attacks,

4:53

with cybersecurity and so

4:55

many issues like this on our minds. Certainly

4:57

it is a very very timely

5:00

moment for Allied Barton Security

5:02

Services and Universal Services of America

5:05

as they merged to become Allied Universal.

5:08

It's the largest security company in North America,

5:10

over a hundred forty security officers

5:12

and the revenues of four and a half billion

5:14

dollars. Privately held company. Very

5:16

happy to welcome to the show now Steve Jones. He's

5:19

the new CEO of Allied Universal,

5:21

joining us from Santa Ana, California.

5:23

Steve, welcome, thank you, thank you.

5:26

So tell us about this merger

5:29

big company. Now, what brought it about? Well,

5:32

the two companies, uh, you have

5:35

have known each other and compete against each other

5:37

for the last twenty years, and uh,

5:39

you know, we just the companies were

5:41

so similar with our cultures

5:44

and so customer focused. And what

5:47

brought it about was, you know, for the last

5:49

four or five years we tried to get something like

5:51

this done and we were

5:54

just you weren't able to do it, and now

5:57

just seemed to be at the right time. I think, you

5:59

know, with you know that you look at the major

6:01

markets across the US and the sub markets

6:03

across the US, the company is just they

6:06

had a great overlap and where

6:09

in in certain certain vertical markets where

6:11

we were strong, Allied wasn't

6:13

in another vertical markets where they were strong, we weren't.

6:16

So we just really complimented each other and

6:18

and we just felt like, you know this, you

6:20

know, one plus one in this in this situation was

6:22

going to equal three or four. You know. So it's just

6:25

it was just there's the right time and there's a right opportunity,

6:27

and it's it's the the two

6:30

companies were just were so similar in so many ways.

6:33

Steve, I wonder if you could describe for people

6:35

the difference between some of the

6:37

security businesses that exist.

6:40

Because there's the security technology industry,

6:42

there is the services market.

6:45

Tell us about how your company fits

6:47

in and where you see the growth. So

6:49

there there there, Yeah, there's a

6:52

variety of different security companies.

6:55

There's you know, security consulting, there's

6:57

risk assessments. There's bodyguard

7:00

security. Then there's what we what we

7:02

really specialize in, which is the

7:04

man guardings of the security guards services

7:06

that protect businesses and malls

7:09

and health care facilities and Fortune

7:11

five companies and commercial real estate

7:13

facilities all across the country. UH.

7:16

There's also electronic security systems,

7:18

which is also another space that we operate

7:20

in. So that's those are the type of businesses

7:22

where we provide security cameras

7:24

and access control systems. So when you go

7:27

into a building and you swipe an access car,

7:29

those are systems that we would either we

7:31

would sell and service and install

7:34

and maintain and manage for

7:36

for customers. And then there's UM

7:38

And then there's the other side of

7:41

the industry, which is which is relatively

7:43

new, which is remote

7:45

video monitoring where you're using

7:47

technology now to monitor video cameras

7:50

and to tell uh, whether

7:52

it's the police departments or whether it's

7:54

security companies, UH, to tell

7:56

them when when something is not right and when

7:59

they should respond. So we have a state

8:01

of the art remote video monitoring center in Dallas,

8:03

Texas that that we're

8:05

we're also in that space. So we're in kind

8:08

of three of three spaces. And the security

8:10

security side, which is demand guarding systems

8:12

and technology, and then the remote video

8:15

monitoring and of course remote video

8:17

monitoring and drones and all that kind of technology.

8:19

I assume claid an increasingly important role. But

8:21

I have to ask you, because all

8:23

of your literature and promotion touts

8:25

your employees, and I'm sure they are top nuts.

8:27

You don't They're paid what a fi'clock glass

8:30

door? Um, maybe about ten bucks

8:32

an hour for many positions. There's a big movement

8:34

on now in some parts

8:36

of the country to get the minimum wage

8:38

to fifteen dollars an hour. Where do you

8:40

stand on paying your workers more? And would that hurt your bottom

8:42

line if that were passed through? So

8:45

look, you know it's you're you're absolutely right.

8:47

I mean, the pay rates are anywhere from ten to fifteen

8:50

dollars an hour. Kind of depends on the marketplace. Every

8:52

market across the country is different, as

8:55

you you probably aware, So

8:58

you know, it's it's kind of market by market specific

9:00

on what the pay raids need to be. We

9:02

uh, you know, look, we we we want to pair our

9:05

employees more. Uh. You

9:07

know, it's a function of how much you

9:09

can charge your your customers for your

9:11

services. And so if the

9:13

entire market moves uh and

9:15

you know the h and they raise minimum

9:18

age in a marketplace, then you know, for us,

9:20

that's just you know, it's an opportunity that you know, we're

9:22

gonna uh, you know, we're going to

9:24

pay all the employees more and

9:27

uh and you know we're gonna have to pass that on to the

9:29

customers. But you know, it's it's it's

9:31

it's very difficult right now. The economy and

9:33

in certain certain certain cities across the country

9:36

is is very strong, and other

9:38

others it's it's not as strong. But in those in those

9:40

markets that are very very strong, you know, New York, San

9:42

Francisco, the Silicon Valley,

9:44

Uh, some parts of Texas, it's

9:47

hard to find people. So you know, too, if

9:49

we can increase the pay raids to to to find

9:51

people and to get better people, that's what we need,

9:53

Steve, just quickly. Taser International

9:56

shares are up more than sixty eight percent

9:58

so far this year. Is there one particular

10:01

product that you have seen gain

10:03

even greater acceptance so far this year?

10:08

Uh? You know that, um, you really,

10:10

you know, the remote video monitoring and

10:12

then you know there's several companies that out there they're

10:14

doing it is becoming more and more

10:17

popular. So if you if you if you think about it, uh,

10:19

you know, you used to have people that just would sit

10:21

in front of cameras and try to watch you ten,

10:24

fifteen, up to a hundred cameras,

10:26

which you know, nobody can watch a hunder cameras at one time,

10:28

so you use uh, you know, you have you

10:30

watch several at one time and you switch

10:32

back and forth. Now with the with the

10:34

rollout of remote video monitoring and using

10:37

video analytics to watch those, that

10:39

is a very very hot market. I can tell you that

10:41

business for us is you know, is growing

10:43

you know, to a year. So it's

10:46

a it's a it's a it's a huge,

10:48

huge opportunity. And thanks very

10:50

much. As Steve Jones, chief executive

10:52

Allied Universal talking

10:54

about the combination with Allied part and Security

10:57

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