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

Author: 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 Video Surveillance News In Your Inbox
Get Video Surveillance News In Your Inbox

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? YES, Anixter / Bosch Sells Direct to Amazon, Anixter 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

2 reports cite this report:

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

ACRE Acquires RS2, Explains Acquisition Strategy on Apr 19, 2019
ACRE continues to buy, now acquiring RS2, just 5 months after buying Open Options. One is a small access control manufacturer from Texas, the...
Access Control Course Spring 2019 - Last Chance on Apr 19, 2019
Register for the Spring Access Control Course. IPVM offers the most comprehensive access control course in the industry. Unlike manufacturer...
Door Operators Access Control Tutorial on Apr 17, 2019
Doors equipped with door operators, specialty devices that automate opening and closing, tend to be quite complex. The mechanisms needed to...
Alarm.com Favorability Results 2019 on Apr 15, 2019
The once dot com startup has evolved to become a core provider for home security and is now expanding into commercial. In their first entry in...
ISC West 2019 Report on Apr 12, 2019
The IPVM team has finished at the Sands looking at what companies are offering and how they are changing their positioning. See below for 50+...
Failed Integrator Rollup, Securadyne Sells to Guard Giant Allied on Apr 09, 2019
One of the most ambitious integrator rollups of the decade has reached its conclusion—selling to a mega guard company. Allied Universal has...
Spring 2019 50+ New Products Directory on Apr 08, 2019
We are compiling a list of new products for Spring 2019 and have over 50 already. Contrast to Fall 2018 New Products Directory and Spring 2018...
Startup GateKeeper Aims For Unified Physical / Logical Access Token on Apr 04, 2019
This startup's product claims to 'Kill the Password' you use to keep your computers safe.  They have already released their Gatekeeper Halberd...
Airship VMS Profile on Apr 03, 2019
Airship has been developing VMS software for over 10 years, however, with no outside investment, and minimal marketing, the company is not well...
Silicon Valley Access Startup Proxy Raises $13.6 Million on Mar 28, 2019
This mobile-credential based access startup just raised $13.6 million in funding.  Further, they claim that their technology can free businesses...

Most Recent Industry Reports

H.265 Usage Statistics on Apr 19, 2019
H.265 has been available in IP cameras for more than 5 years and, in the past few years, the number of manufacturers supporting this codec has...
ACRE Acquires RS2, Explains Acquisition Strategy on Apr 19, 2019
ACRE continues to buy, now acquiring RS2, just 5 months after buying Open Options. One is a small access control manufacturer from Texas, the...
Access Control Course Spring 2019 - Last Chance on Apr 19, 2019
Register for the Spring Access Control Course. IPVM offers the most comprehensive access control course in the industry. Unlike manufacturer...
Riser vs Plenum Cabling Explained on Apr 18, 2019
You could be spending twice as much for cable as you need. The difference between 'plenum' rated cable and 'riser' rated cable is subtle, but the...
Verint Victimized By Ransomware on Apr 18, 2019
Verint, which is best known in the physical security industry for video surveillance but has built a sizeable cybersecurity business as well, was...
Milestone Drops IFSEC on Apr 18, 2019
Milestone has dropped out of Europe's largest annual security trade show (IFSEC 2019), telling IPVM that they "have found that IFSEC in EMEA no...
The Fastest Growing Video Surveillance Sales Organization Ever - Verkada on Apr 17, 2019
Verkada has the fastest growing video surveillance sales organization ever. In less than 2 years, they already have more salespeople in the US...
Door Operators Access Control Tutorial on Apr 17, 2019
Doors equipped with door operators, specialty devices that automate opening and closing, tend to be quite complex. The mechanisms needed to...
Securadyne CEO: IPVM 'Entertaining For An Ignorant Few' on Apr 16, 2019
Securadyne's CEO Carey Boethel is unhappy with IPVM's report - Failed Integrator Rollup, Securadyne Sells to Guard Giant Allied. Indeed, he...
Dahua Repositionable IR Multi-Imager Camera Tested on Apr 16, 2019
Dahua has released their first repositionable multi-imager camera, the Multi-Flex 4x2MP, claiming integrated IR, true WDR, and flexible...

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