Anixter Acquires 'PSIM Platform' Inner Range - "Heart of Our Technology Differentiation"

By: John Honovich, Published on Apr 30, 2018

Anixter Security has made a bold move, acquiring what it calls a PSIM platform as part of a $150 million deal, with Anixter's CEO Bob Eck declaring:

this physical security information management platform capability we've acquired, that sits right in the heart of our technology differentiation that we've talked about for years...

physical security information management platform that we don't have today and we think is very scalable across the organization. [emphasis added]

What is this PSIM? Who is Inner Range? And how competitive will Anixter be with PSIM at the heart of their technology differentiation?

Inside, we answer these questions.

Acquisition Overview - 3 Companies Australasia

Anixter partially disclosed the acquisition in their quarterly results:

definitive agreements to acquire security businesses in Australia and New Zealand for ~$151 million ... Combined, these businesses had trailing 12-month sales of USD ~$114 million and adjusted EBITDA of approximately USD ~$20 million.

IPVM has confirmed that these businesses are access control / 'PSIM' manufacturer Inner Range, Australia's Central Security Distribution (CSD) and New Zealand's Atlas Gentec.

Get Notified of Video Surveillance Breaking News
Get Notified of Video Surveillance Breaking News

Shared Ownership

While the combination of these 3 may seem strange, a 2014 announcement indicates that the 3 companies share ownership:

Inner Range & Central Security Distribution ownership share re-structure. The Group announced today that a 50% shareholding has now been acquired by a coalition of three senior management staff and New Zealand Company Atlas Gentech.

As such, we believe the businesses were acquired as a set.

Strengthens Anixter Australasia Distribution

Anixter was not a major distributor in Australasia and now is. CSD and Atlas Gentec are large distributors in their respective countries, setting up Anixter to be a major player in a region where they had not been.

Tri-Ed Acquisition Comparison

It has been nearly 4 years since the 2014 Anixter acquisition of Tri-Ed. Tri-Ed's revenue then was 5x that of CSD/Atlas/Inner Range is now. However, the later was much more profitable with an EBITDA margin (~18%) nearly 3x of Tri-Ed's 6% at the time of their acquisition.

Inner Range Manufacturer

Inner Range, which describes itself as "Designers & Manufacturers of Access Control & Security Systems", is globally a smaller player but fairly strong in their home region of Australasia.

In terms of management software, 'Integriti' is sold in three versions with the most basic 'access only' supporting a single controller (to 16 doors) with no 3rd party integrations, up to the 'Professional' version with no door count restrictions.

System integration modules are available for many western premium brands, including VMS integrations with Exacq, Milestone, Bosch, Pelco, March Networks, and Genetec. The platform also supports over 40 additional integration categories to elevator controls, intercoms, lighting/HVAC, fire alarms, and visitor management systems, among others. In general, the various integrations and scaling claims of the system are comparable to enterprise-grade, large-scale access platforms.

Unlike many North American access platforms, Inner Range panels include integrated intrusion alarm systems (up to 250 areas) with integrated dialers or communicators supporting most major monitoring formats. Rather than installing and integrating a 3rd party system into the access platform, Inner Range claims this functionality integrated by default. The image to the side shows a typical Inner Range enclosure can built out to support alarm, access control, communicators, and power management/backup batteries. 

PSIM Competitiveness?

While Inner Range does not call themselves PSIM (and who can blame them given how bad PSIM has done as a business), given their access and security capabilities plus video integration, they could be considered PSIM, at least loosely. But the true PSIM market is quite small, with players like CNL and Vidsys, tiny by even security manufacturer standards.

However, the upside is that if Anixter wants to scale Inner Range's offering 'across the organization', as Anixter's CEO said, there clearly is a lot of growth potential as Inner Range has limited reach in the Western world whereas Anixter is quite large in North America. This would not be in PSIM sales but more conventional access control / security management.

Compete Against Their Manufacturer Partners

Anixter is infamous for competing against their integrator customers (e.g., Does Anixter Sell Direct To End Users? YESAnixter / Bosch Sells Direct to AmazonAnixter Touts Selling to End Users, etc.). If they truly put Inner Range at the 'heart of their technological differentiation', they will be competing against their manufacturing partners too.

History of Distributors Competing Against Manufacturers

If Anixter really follows through with their PSIM / 'heart' plan, they will not be the first in this position. For example, ADI itself was formed to distribute Ademco products (i.e., Ademco Distribution Inc.) and Honeywell, the manufacturer, owns ADI, the distributor (though, with the ADI spin-out, that is changing and, e.g., Honeywell access control will be part of a separate company than ADI soon). And, of course, CSD and Inner Range have owned and distributed Inner Range for years. However, that was primarily done in a single geographic region where it was likely easier to provide support. This could be more challenging for Anixter if they genuinely start selling (and thereby supporting it) globally.

This is definitely a risk. Whether it works out remains to be seen.

Poll / Vote

3 reports cite this report:

Australia Security Full Show Report on Jul 25, 2019
IPVM went to Australia attending the 3 days of the Australia Security Exhibition: This was held at the ICC Sydney, as shown below: In this...
2018 Mid-Year Surveillance Industry Guide on Jun 28, 2018
2018 has been an explosive year for the video surveillance industry, with the industry becoming a global political issue, with the expansion of...
IFSEC 2018 Final Show Report on Jun 20, 2018
IPVM attended the IFSEC show for the first time this year. The Chinese took over the show, centered on Hikvision, flanked by Dahua, Huawei and a...
Comments (22) : PRO Members only. Login. or Join.

Related Reports

Biometrics Usage Statistics 2019 on Aug 13, 2019
Biometrics are commonly used in phones, but how frequently are they used for access? 150+ integrators told us how often they use biometrics,...
US Government Ban of Dahua, Hikvision, Huawei Takes Effect Now on Aug 13, 2019
The 'prohibition on use or procurement' of Dahua, Hikvision and Huawei products and 'essential components' take effect today, August 13, 2019, one...
ProdataKey (PDK) Access Company Profile on Aug 09, 2019
 Utah based ProdataKey touts low cost cloud access, wireless controllers, and no dealer required national distribution availability.  But how does...
Dahua, Hikvision, Huawei US Ban Rules Released on Aug 08, 2019
The US government has released rules on how the 2018 NDAA ban of Dahua, Hikvision, and Huawei will be implemented when it takes effect in 5...
Axis Door Station A8207-VE Tested on Aug 07, 2019
Axis newest door station, the A8207-VE, claims to deliver "video surveillance, two-way communication, and access control" in a single device. But...
Mobile Access Control Shootout - Farpointe, HID, Openpath, Nortek, Proxy on Jul 29, 2019
One of the biggest rising trends in access control is using phones as credentials but which offering is best? IPVM has tested five of the...
Australia Security Full Show Report on Jul 25, 2019
IPVM went to Australia attending the 3 days of the Australia Security Exhibition: This was held at the ICC Sydney, as shown below: In this...
Responsibility Split Selecting Locks - Statistics on Jul 22, 2019
A heated access debate surrounds who should pick and install the locks. While responsible for selecting the control systems, integrators often...
Mobile Access Usage Statistics 2019 on Jul 18, 2019
The ability to use mobile phones as access credentials is one of the biggest trends in a market that historically has been slow in adopting new...
How To Troubleshoot Wiegand Reader Problems - Inverted Wiring on Jul 16, 2019
Wiegand is the dominant method of connecting access readers, but problems can arise for installers. In fact, one of the most difficult reader...

Most Recent Industry Reports

Verkada People And Face Analytics Tested on Aug 16, 2019
This week, Verkada released "People Analytics", including face analytics that they describe is a "game-changing feature" that "pushes the...
Dahua OEM Directory 2019 on Aug 16, 2019
US Government banned Dahua OEMs for dozens of companies. The following directory includes 40+ of those companies with a graphic and links to...
Installation Course - Register Now on Aug 15, 2019
Register Now for the September 2019 Video Surveillance Install Course. This is a unique installation course in a market where little practical...
Axis Suffers Outage, Provides Postmortem on Aug 15, 2019
This week, Axis suffered an outage impacting their website and cloud services. Inside this note, we examined what happened, what was impacted...
Hikvision Scrutinized In The Netherlands on Aug 15, 2019
Hikvision is facing unprecedented scrutiny in the Netherlands, at the same time the US government ban has taken effect. This week, a Dutch...
Axis 4K Camera Shootout 2019 on Aug 14, 2019
Axis' 4K Q3518-LVE claims the "best video quality possible", with Lightfinder super low light performance, Axis' high end Forensic WDR, and...
CheckMySystems Company Profile on Aug 14, 2019
CheckMySystems says that too many users respond, "I get an email when something is wrong" when talking about their video system maintenance plan,...
Hikvision OEM Directory on Aug 13, 2019
The Chinese government-owned and US-government banned Hikvision has become the world's largest video surveillance manufacturer and generally hidden...
Biometrics Usage Statistics 2019 on Aug 13, 2019
Biometrics are commonly used in phones, but how frequently are they used for access? 150+ integrators told us how often they use biometrics,...
US Government Ban of Dahua, Hikvision, Huawei Takes Effect Now on Aug 13, 2019
The 'prohibition on use or procurement' of Dahua, Hikvision and Huawei products and 'essential components' take effect today, August 13, 2019, one...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact