Elvey and Pentagon to lead in the projects market

April 2011 News

The recent announcement that Elvey Security Technologies acquired Pentagon Distribution may have taken some by surprise. Officially, Pentagon now falls into the security division of Hudaco and will function as a division of Elvey Security Technologies.

Hi-Tech Security Solutions spoke exclusively to Elvey’s CEO, Jack Edery and Pentagon’s MD, Brendon Hall to find out what is behind this move.

Elvey launched its Projects Division last year to assist integrators in all aspects of large security endeavours, from commissioning and designing solutions, through to integration and training. Pentagon, on the other hand, has been ahead of its competitors for some time and is very active in the projects market. The joining of the two companies will, from one perspective, strengthen the projects division beyond any current offering from competitors.

“Elvey identified the opportunity for growth in the market as being project-based, specifically with respect to the integration of security platforms,” says Edery. “Customers today are looking for more than technology, they want a service-based approach that offers solutions to their problems. We therefore saw the need to strengthen the Projects team dramatically, Pentagon offered the vehicle for achieving this.”

Incorporating Elvey Projects, Pentagon will now be the go-to-division for project work. Edery says there “is now no project too large or too small”. He adds that the acquisition also allows Elvey to meet new customer requirements without compromising on its service levels.

More than a new projects division, the acquisition sees one of South Africa’s largest value-added distributors (VAD) specialising in intruder detection, joining a specialist distributor of CCTV equipment. Pentagon adds to its product line-up by delivering value in the design of systems and integration into access control, intruder and fire detection systems. It specialises in integrating IP technology into existing corporate security infrastructures. The result is a South and southern African VAD network covering a larger scope of the security technology market.

According to Hall, other benefits of the deal include:

* Pentagon now has access to the Elvey branch network of 16 offices.

* Pentagon’s customers benefit from Elvey’s BEE status, which is currently at level 4 and plans are in place to improve it to level 3 in the near future. This will automatically allow Pentagon’s customers to take maximum advantage of BEE procurement benefits.

* Pentagon now has the financial muscle to take on larger projects than ever before, while Elvey will be better placed to support customers on smaller projects at branch level.

* Elvey gains access to specialist knowledge of and experience in the projects industry.

Edery adds that the two companies will continue to operate as separate businesses, but will work together at critical points in order to offer the best service to customers. “Together we offer a broader range of product and a broader footprint that will provide customers with the best solution for their applications.”

Another benefit for Elvey’s customers will be that there will be one person to call should they have a problem. “While the opportunities are tremendous, we are also very aware of the responsibility we will be taking on and are confident that our service offering will meet the high standards our clients expect,” notes Hall.


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