Alarm.com buys CellGate as Q3 revenue climbs 9% to $279M
What's the deal? Alarm.com has acquired CellGate, a maker of cellular-connected gate access and video intercom products, for an undisclosed sum. The deal, announced in November 2026, extends the smart-security firm's commercial portfolio into gate access and opens a new channel of fence-and-gate contractors.
What each side brings: Nasdaq-listed Alarm.com sells subscription-based security and video software through service providers. CellGate's systems let vehicles and pedestrians through gates at commercial properties, small businesses, and multifamily communities without wired networks or property Wi-Fi.
The financial backdrop: Alarm.com reported third-quarter revenue of $279.4 million, up 9% year over year, and raised its full-year outlook. SaaS and license revenue rose 9% to $191.2 million, and adjusted EBITDA climbed 19.3% to $66.2 million, though management warned the quarter benefited from temporary hardware cost recoveries.
What's the endgame? The company estimates as many as 6,000 US fence and gate service companies regularly install automated gates — a trade channel it has not traditionally served. CellGate will operate independently, like Alarm.com's OpenEyeDealroom has a profile for this one. Try Dealroom → and CHeKTDealroom has a profile for this one. Try Dealroom → units, with platform integrations planned later.
Why it fits: "CellGate brings together several characteristics we look for in an acquisition: a specialized product offering, an established relationship with the trade channel, and an opportunity to build recurring services around connected devices," said chief executive officer Steve Trundle.
What could go wrong? Alarm.com expects CellGate to add $15 million to $20 million in SaaS and license revenue in 2027. But its margins are expected to weigh on adjusted EBITDA for the next couple of years, testing whether the new channel delivers recurring growth fast enough to offset dilution.
The signal: The purchase lands amid a wave of consolidation in security, with SimpliSafe's sale to GTCRDealroom has a profile for this one. Try Dealroom → and ADT's pending acquisition by Thrive Holdings. For Alarm.com, the bet is less about a small bolt-on than about converting a fresh distribution channel into durable subscription revenue.
Read more: securityinfowatch.com
Image credit: Generated with Gemini
