NICE Is Out Of the Video Surveillance Business / Now Qognify

JH
John Honovich
•Published Aug 03, 2015 04:00 AM

One of the bigger players of the prior era is exiting the video surveillance market.

NICE is selling off its 'physical security business unit' to a US investment firm.

From speaking with both NICE's General Manager and the investment firm partner leading the deal, we believe this will help the new company compete at the high end of the market.

Inside this post, we break down the deal, examining what the investment firm is likely to do and where NICE's ex-unit is headed.

NICE ****** ** *****

****'* ****** ******* ** ~$* *******, out ** ****, *** ******** ***** does **** **** * ******* ** that *******. *** **** ****** ********, the ***** ************ / ******** ******** unit, ** **** * ******** ** that. **** ** ****'* ******* ***** from '******** *********** *********' / **** center, ***** ** ******* **** ** NICE's *****.

******, ** *****,**** **** *** ***** ************* ********, ******* **** ** ***** ******** group, *** $***.* ******* **** + $40 ******* **********. **** ****, *** physical ******** ********* *** ***** ****** safety / *** ********* *********.

NICE **** ***** / *********

***,**** ** ******* *** *** ******** security ******** ****(****) *** $** ******* *** + $15 ******* ********* **********.

**** *** *** ******** *** ***** revenue *** ******** ********, *** ** estimate *** **** ** ** * $50 - $** ******* ********, ***** their ****** ** ****** ******* ************ and ***** **** ******** ******* *******.

** ******** * *****-**-***** ***** ** 1 - * **** ** *******, the ********** ****, ***** ***** ** a ****** ********** ****, *********** **** most ** *** ******* ** **** software, *** ********.

NICE **** *********

********* ** ****, ***** ******** ******** consists ********* ** *** ********, **** / ********* ********** ******** (****************** **** ***** ** ****), *** ***** ********* ********. **** says **** ***** **** ******* ******* and ******** *** ***** **** **** a ******* ********. **** **** *** sell *******.

**** **** ***** **** / ********* management ******** ** ******* ** ********** overall *** **** *** ***** ** total **** ******* ** ********** **** year. ** **** ***, **** ** looking ** *** / **** **** offering *** **** **** ********, ** expand **** ****** *** *********** **********.

NICE ****** ********

**** *** ************ **** ******* ** the **** **** *** ** *** physical ******** / ************ ******. ** NICE, **** ***** ******* ***** *** in *** *** ******* ****** *****, which *** ***** ************, ** *** high *** ** *** ********.

** ** *** ****** **** ** change, ********** **** *** ********* ***** on ********* **********. **** ** **** PSBU's ******* ** ** *** $** to $** ******* *****, ** ***** they **** **** **** * ******* new ********* *** ****. ** ******, the ****** ** **** **** ** going ***** ***** **** *** ******** of ********* ** ******** ****.

The ****** ** *** ******** *******

******* ** * ****** **** *****, prominent ********** ****. **** ***********, ***** focus ** ********** * ****** ***** on ***** **** *** ********* ** the *********** *****, *** ********** *****-**** operating *******.

** **** ***, ** ****** ******* will **** **** ***** ******** / surveillance ********.

Future *******

****** ** ****, ******** ******** *** an ****** *** *** ***** ** be *******.

***, *** **** **** **** ****** its *** *********** ******* (*** *******'* new **** *********).

***** **** ***** ******** *** ***** will ** ** *** **** *** of *** ******** / ************ ******, their ******* ****** **** ** *******. However, **** **** *** **** *** of *** *** ********** ********* **** are ****-********* *** *** **** *** of *** ******. * ***** *********** start ***** **** ****.

Comments (6)
Avatar
Scot MacTaggart
•Aug 03, 2015

I really expected that either NICE or Verint would sell to the other one when the time came. They're very similar.

(2)
(1)
UM
Undisclosed Manufacturer #1
•Aug 04, 2015
In reply to Scot MacTaggart

Scot,

This doesn't preclude this from happening. In fact, I'd venture to guess Verint could be interested in selling off their video surveillance division at some point in the near future. It's the smallest and worst performing of Verint's divisions, Verint has already closed facilities and eliminated more than 100 positions in the last 18 months, and the video surveillance division doesn't fit Verint's core strategy as a software-based big data company.

So it's conceivable that Verint could close or sell off it's Video Surveillance division, and still leave an opening for them to purchase NICE or vise-versa.

JH
John Honovich
•Aug 04, 2015
IPVM
In reply to Undisclosed Manufacturer #1

"software-based big data company"

What's more big data than video surveillance?

I kid... I kid...

(2)
(2)
Avatar
Hal Bennick
•Aug 05, 2015
Trafficware, a CUBIC Company
In reply to Scot MacTaggart

Speaking as an ex-Verint guy, I've always suspected that Verint uses their video business as a tax shelter.

JB
Joeri Boeckx
•Aug 04, 2015
TEIN TECHNOLOGY NV

Are Nice Situator and NiceVision part of the PSBU business of NICE?

JH
John Honovich
•Aug 04, 2015
IPVM
In reply to Joeri Boeckx

Yes, the NICE BSBU includes Situator (the PSIM), NiceVision (the VMS), and their analytics including the new Suspect Search.