Scout Security Ltd Stock Market Press Releases and Company Profile  The Sophisticated Investor Stock Market Press Releases and Company Profile

Sydney, Aug 2, 2018 AEST (ABN Newswire) - Scout Security (googlechartASX:SCT) has signed a partnership deal with Stanley Black & Decker, Inc. ((googlechartNYSE:SWK), 'SBD') to license Scout's home-security platform and hardware suite. A Fortune 500 company with a current market capitalisation of approximately US$22 billion, SBD is also the world's largest power tool and storage supplier, and the second largest provider of security services globally. Highlights of the announcement include the following.

- SBD to license and sell Scout's home-security platform.

- The partnership grants SBD the right to deploy the Scout software platform and hardware suite across its brands and security business units globally.

- The combination of Scout's platform and SBD's offerings provides numerous near- and long-term opportunities in both residential and commercial security.

- Work on establishing a commercial offering begins immediately, with SBD purchasing a block of prepaid licenses for AU$408,000 (US$300,000).

Analyst comment: this is a complete game-changer for Scout.

While SBD is best known in Australia for its range of high-quality power tools, many remain unaware of its status as a Fortune 500 company with a market capitalisation of around US$22 billion. Indeed, SBD is the leading provider of power tools and storage solutions globally and also - and more relevantly for the Scout partnership - the second largest provider of commercial electronic security solutions worldwide.

That said, to date SBD's security solutions have encompassed largely commercial, hard-wired options. The Scout partnership, then, provides SBD with a quick, turn-key solution, allowing it a rapid move into the retail-focused, DIY home-security sector as early as 2019.

Not surprisingly, given the size of SBD, a number of key terms of the partnership remain confidential. However, the initial upfront licensing fee does signal SBD's commitment to the relationship.

The partnership involves SBD 'white labelling' Scout's hardware and software solutions to sell as its own products around the world. Given SBD's unrivalled distribution network, the short- and long-term impact on Scout's sales, and thus profitability, are likely to far exceed all previous expectations. We look forward to further information on this partnership being released in coming months.

Valuation: despite the likely positive impact of this partnership on the company's long-term profitability, we maintain our valuation of Scout at $0.94 /share (share price $0.18/share), but will review it as more information on the Scout/SBD partnership is released.

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About Scout Security Ltd

In February of 2013, Scout Security Ltd (ASX:SCT) launched an independent crowdfunding campaign to pre-sell its devices. Within 30 days, Scout exceeded its goal. Since then, over $500,000 worth of systems have been sold. Scout was possible because of people like you - backers who shared a common problem and common vision. Our customers gave this company its start and their needs are what drive our company daily.

Scout's mission is to create a home security system that is smart, simple and affordable. It sounds deceptively easy. But, with thousands of connected home devices popping up each year, deciding what devices should go in your home is complicated. Not anymore. As a customer of Scout, you're going to get a thoughtful, curated home security experience from end-to-end. No nonsense, just a modern home security system for a modern home. 

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