Home security provider Scout Security Limited (ASX: SCT) has signed a deal with leading US security firm COPS Monitoring to resell Scout’s recently announced DIY product suite to its network of alarm dealers.
COPS is the largest security monitoring centre in the US, with relationships with more than 3,500 security alarm dealers across the US. It has over 2,400,000 home security accounts under management. Scout has worked with COPS to provide monitoring for COPS’ direct-to-consumer offering for the past four years.
Scout Security co-founder and CEO, Dan Roberts, said the agreement sees Scout gain access to consumers who may prefer to buy through a local, trusted dealer and significantly shortens Scout’s sales cycle, accelerating the Company’s time-to-market for its new product suite.
He said the resale deal leverages COPS’ 3,500+ dealer relationships and will see Scout’s product suite offered to a massive base of dealers simultaneously, saving Scout from having to strike partnerships with individual dealers.
“Alarm dealers will be able to order hardware and services from Scout through COPS. In addition to up-front hardware revenue, Scout will bill for interactive services on a per- account-per-month basis, providing a boost to the recurring revenue stream the Company has grown over the past two years,” he said.
Scout expects the COPS resale agreement to provide a boost to this growth trajectory, with revenue through COPS set to commence flowing in Q1 CY18.
COPS is an industry leader in the alarm dealer space and we’re excited for them to be the first partner to offer our DIY suite of products to dealers,” Mr Roberts said.
“Along with COPS, we expect alarm dealers to see the benefits of selling a smart DIY product that rivals direct-to-consumer offerings and addresses the growing number of consumers asking for a DIY option.
“As we have said previously, we believe that sales through the alarm dealer channel could exceed sales from our direct-to-consumer offering. This partnership is an exciting first step in reaching that goal.”
