Short sellers targeted Alarm.com $ALRM stock on November 2, 2022, as news circulated that Vivint would stop paying the company licensing fees.
Alarm is the main platform for the smartly connected property. Millions of consumers and businesses depend on Alarm’s technology to manage and control their property from anywhere. The Alarm.com platform connects with a growing number of Internet of Things (IoT) devices through apps and interfaces. Our security, video, access control, intelligent automation, energy management, and wellness solutions are available through our network of thousands of professional service providers.
Alarm.com says Vivint plans to stop paying license fees
On October 27, 2022, Alarm.com ($ALRM) announced that Vivint Inc. ($VVNT) has notified the company that it will stop paying license fees to Alarm under the Patent Cross License Agreement between the companies. Vivint has fulfilled its licensing obligations to Alarm since the agreement was executed in November 2013. Alarm disputes Vivint’s refusal of payment, has filed for arbitration per the agreement, and is actively evaluating additional legal remedies. For the fourth quarter of 2022, Alarm anticipates that SaaS and license revenue and total revenue will be negatively affected by approximately $6 million, or 3% of total revenue. Alarm believes that quarterly earnings and cash flow will be impacted by the aforementioned $6 million, plus additional legal fees.
Alarm.com Acquires Noonlight, A Next Generation Connected Safety Platform
On October 19, 2022, Alarm.com announced it completed a majority-stake acquisition of Noonlight, a next-generation connected safety and event management platform that enables new applications and provides enhanced emergency response capabilities.
Noonlight was started in 2013 to make advanced technology that people can use to feel safe and comfortable.The company started as a mobile safety application and has grown into a connected safety platform that has attracted over 3.5 million people. Noonlight’s software platform helps IoT device vendors manage events and respond to emergencies.
“Noonlight is a demonstrated leader in the personal safety and emergency response space and we’re pleased to bring their entrepreneurial team and leadership into the Alarm.com family,” said Jeff Bedell, Alarm.com’s Chief Strategy and Innovation Officer. “Our investment in Noonlight will help expand its business and continue to provide unmatched services to its markets and customers. Noonlight and Alarm.com have aligned missions to protect people through advanced technology, and we look forward to innovating and leveraging the platform with our partners.”
“We’re thrilled to join the Alarm.com family,” said Zach Winkler, CEO of Noonlight. “They have a unique and successful history of majority-stake acquisitions – empowering innovative companies to continue to operate as an independent business and brand, while still benefiting from Alarm.com’s industry know-how, reputation, expansive resources, networks, and leadership team. We look forward to accelerating our mission and global security offerings with the backing of Alarm.com.”
Noonlight will continue to operate independently as a next generation IoT device monitoring provider, as well as a consumer safety app and brand that millions of users trust. Noonlight’s current management team will continue to lead the business from its headquarters in St. Louis, Mo.
Alarm.com $ALRM Stock Technical Analysis
$ALRM stock is in a technical strong downtrend. The market is approaching oversold territory, so be watchful of a bounce or even trend reversal. The stocks is trading in a downtrend channel chart pattern.