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 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

ADT Eliminating Acquired Brands, Unifying Under 'Commercial' Brand on Jun 14, 2019
ADT is eliminating the brands of the many integrators it has acquired over the past few years, including Red Hawk, Aronson Security Group (ASG),...
Farpointe Data Conekt Mobile Access Reader Tested on Jun 13, 2019
California based Farpointe Data has been a significant OEM supplier of conventional access readers for years to companies including DMP, RS2, DSX,...
Axis Will Not Block Resellers on Jun 10, 2019
While Axis generally has strong favorability amongst integrators, the biggest complaint is their channel model, which results in smaller integrator...
Dumber Techs, Bad Box Movers, Says Australian Distributor on Jun 10, 2019
Techs today are "dumber" than they used to be, despite better education and training and that makes a typical day "frustrating" for one...
OpenALPR Doubles Prices on Jun 06, 2019
There is no 'race to the bottom' in cloud / AI video surveillance. In May, Verkada increased their prices. Now, OpenALPR is doing the same with a...
Nortek and SDS Fight Over Failed Settlement on Jun 05, 2019
Distributor SDS said they reached a deal with Nortek but Nortek says no settlement was reached and the suit is still on. In this post, based on...
"New" Arecont Fixes Failures "Without A Fight" on Jun 05, 2019
The "old" Arecont was infamous not only for its camera failures but for making their "partners" fight to get them fixed. IPVM drew the ire of...
OSDP Access Control Guide on Jun 04, 2019
Access control readers and controllers need to communicate. While Wiegand has been the de facto standard for decades, OSDP aims to solve major...
Vidsys New President Interviewed on May 31, 2019
A decade ago, PSIM was hot with projections then of a billion dollar market by now. This has not come close to happening. However, Vidsys, one of...
Verkada Favorability Results 2019 on May 29, 2019
Verkada has taken the industry by storm with the fastest growing video surveillance sales organization ever and a half billion dollar valuation....

Most Recent Industry Reports

Sighthound Transforms Into Enterprise AI Provider on Jun 14, 2019
Sighthound is now rapidly expanding its R&D team, building an enterprise AI service. This may come as a surprise given their origins 6 years...
ADT Eliminating Acquired Brands, Unifying Under 'Commercial' Brand on Jun 14, 2019
ADT is eliminating the brands of the many integrators it has acquired over the past few years, including Red Hawk, Aronson Security Group (ASG),...
NSA Director Keynoting Dahua and Hikvision Sponsored Cybersecurity Conference on Jun 13, 2019
The technical director for the NSA’s Cybersecurity Threat Operations Center will be keynoting a physical security cybersecurity conference that is...
Farpointe Data Conekt Mobile Access Reader Tested on Jun 13, 2019
California based Farpointe Data has been a significant OEM supplier of conventional access readers for years to companies including DMP, RS2, DSX,...
Embattled $400 Million China Funded Philippines Surveillance System Proceeds on Jun 13, 2019
An embattled 12,000 camera surveillance system project that will cost ~$400 million will proceed.  The project contract was awarded, had its...
False Verkada 'Unrivaled' Low Light Performance Claim Removed on Jun 12, 2019
Verkada falsely claimed that it delivered 'UNRIVALED LOW LIGHT PERFORMANCE' until IPVM questioned. In fact, Verkada's low light performance is...
Manufacturer Favorability Guide 2019 on Jun 12, 2019
The 259 page PDF guide may be downloaded inside by all IPVM members. It includes our manufacturer favorability rankings and individual...
Camera Course Summer 2019 - Register Now on Jun 12, 2019
Register for the Summer 2019 Camera Course.  This is the only independent surveillance camera course, based on in-depth product and technology...
Favorite Wireless Manufacturers 2019 on Jun 12, 2019
Many wireless options exist for video surveillance but how are integrator's overall favorites? 170 integrators answered the question: What is...
Carnegie Mellon AI Startup Zensors Profile on Jun 11, 2019
Zensors is a startup formed by Carnegie Mellon graduates from a Carnegie Mellon research project, offering customized models per camera that they...

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