New Top Bidder, Arecont Goes To Auction

By: John Honovich, Published on Jul 05, 2018

$10 million cash will not be enough to buy Arecont.

Though Arecont signed a purchase agreement with a turnaround specialist, a rival video surveillance manufacturer has entered a higher bid. Now, Arecont will be auctioned between those two bidders.

In this note, we examine the rival video surveillance manufacturer with the top bid, their background and how this could impact the future of that manufacturer and Arecont.

$** ******* **** **** not ** ****** ** buy *******.

****** ******* ****** * purchase ********* **** * turnaround **********, * ***** video ************ ************ *** entered * ****** ***. Now, ******* **** ** auctioned ******* ***** *** bidders.

** **** ****, ** examine *** ***** ***** surveillance ************ **** *** top ***, ***** ********** and *** **** ***** impact *** ****** ** that ************ *** *******.

[***************]

Top ****** *** - ****** ************

****** *************** ****** *********, ******* up ** ******* ** July *, ****, ****** ***** ****** *****:

Who ** ******?

****** ** * ******** traded *******, ******** ************* ** $** ******* vs* ****** ************** ****** $** *******. *** company ******** ******** *****, * ******-******* ***** surveillance ********,******, ** ********** ***** surveillance **************** ******** ** ****, *********** ********, ******* ****** ******* surveillance ************** ******** ** ****.

***** ******* ******* ****** Video *** ****** ** close, **** ****** ** made **** ******, ** the ******* ***** *****:

**** ***** ****** ****** and *&* ************ *** low, ** ************ **% and *.*%, ** ***** below:

Costar ********

******'* ******** ** ************ on ******* ******* ***** growing ******* ************, ********* to ******** **** ******** ************:

** **** ******* *******, they **** ** ********* significantly **** **** $** million ****** ******* *** potentially **** ******** ***** revenue.

**** *** ******** ** of ********* ***** ******* businesses ** *** ******* clear ** **. *******, at *** **** *****, it ** ***** * lot ** ******* ** a ****** *** *****.

****** ********* ** *** inquiry ****** **** **** would **** ** ** once *** ******* ******* is ****.

Poll / ****

Winner ******** **** ****

*** ******* **** **** place **** *** **** the ****** ********* ** the ****:

** **** ****** *** coverage **** ***** *******.

Comments (15)

Good for Costar. We used to buy tons of their used cameras from walmart stores when they would update all of their stores and turn around and sell em on ebay. At that time they were OEM'ing from Hitron. Unsure if they are actually manufacturing products but this is a great move for them to move in that direction.

Costar  took over a lot of IDIS as well. With IDIS analog, they either OEM from Hitron or Hitron from IDIS 

Costar purchases from IDIS.

Costar (CSTI) seems to have very little interest on the Street. Trading volume is usually in the hundreds and most days seem like no volume. Wonder if this will help spike interest in the company if they acquire Arecont.

Wonder if this will help spike interest

At the level they are at, most anything would help...

Arecont's name alone may not make much of a difference but the increase in revenue could as well as if they tell a story of being more of a technology developer rather than an OEM, i.e., Arecont's FPGA technology. Of course, how much they retain / use, if they win, remains to be seen.

FYI, COHU is a big player in transportation.  At least half the State DOTs that I'm talking to in the US are installing them on their big highway systems.

#2, you are either wrong or transportation is a tiny market. CohuHD's revenue was not even $20 million last year. Thoughts?

Fairly small market.  I would estimate there are somewhere around 50k DOT highway cams nationwide, maybe 75k.  With a lifespan of 5-10 years, you can estimate how many are being replaced yearly.  Not talking public safety cameras, these are DOT operational traffic cameras.

 

Wisconsin is a recent notable adopter: Wisconsin Department of Transportation
High Definition Video System Upgrade

I was recently at a NJ DOT technlogy expo and Sony and Cohu were the only 2 camera manufacturers present.  So they definitely appear to be transportation focused 

Cohu is ITS/Traffic based almost exclusively compared to Costar playing in the typical retail/SMB/residential space.

Arecont would give them the viable commercial/governmental product line that they really don't have now.

Los Angeles Public Works, which includes traffic, uses Cohu

Agreed. I see them deployed along state roads all the time.

Traffic changes every decade or so.  Cohu is certainly a player in highway bids and some military.  Now so is Axis, Bosch, Pelco still.  There‚Äôs a lot of old analog still running.

Goodbye Arecont. No password arse default gui. 

Update: Arecont announces sale to Costar. We will release a post in the morning covering it.

Login to read this IPVM report.

Related Reports

Anixter Resisting Takeover From Competitor, Bidding War Emerges, Wesco Wins on Jan 13, 2020
Mega distributor Anixter is going to be acquired but by whom? Initially, Anixter planned to go private, being bought by a private equity firm....
Wesco Wins Anixter on Jan 13, 2020
Despite Anixter earlier arguing that Wesco's bid was inferior to CD&R's by nearly 10%, Anixter confirmed that they are taking Wesco's 3.1%...
The Booming Multi-Billion Coronavirus Fever Camera Market on Apr 21, 2020
The market for elevated body temperature detection cameras, aka 'coronavirus cameras' aka 'fever detectors', may be worth billions of dollars this...
Manufacturers on Virtual 'ISC West' 2020 and Potential ISC West 2021 on Jun 29, 2020
With the 2020 ISC West show now officially canceled, attention turns to Reed's new "ISC West 2020 Virtual Event" planned for October and for the...
Hikvision Global Revenue Falls, Hit By Coronavirus on Apr 27, 2020
Hikvision's global revenue fell in the first quarter of 2020 due to the coronavirus, with Hikvision stating uncertainty for 2020 "is greater than...
Cisco Acquiring Fluidmesh on Apr 09, 2020
Cisco announced it is acquiring niche wireless manufacturer Fluidmesh. Both Cisco and Fluidmesh have been offering video surveillance solutions...
Favorite Camera Manufacturers 2020 on Jan 20, 2020
The past 2 years of US bans and sanctions have shaken the video surveillance industry but what impact would this have on integrators' favorite...
Apple Acquires XNOR.ai, Loss For The Industry on Jan 16, 2020
Apple has acquired XNOR.ai for $200 million, reports GeekWire. This is a loss for the video surveillance industry. XNOR.ai stunned the industry...
UK Government Says Fever Cameras "Unsuitable" on Jul 01, 2020
The UK government's medical device regulator, MHRA, told IPVM that fever-seeking thermal cameras are "unsuitable for this purpose" and recommends...
Cisco Video Surveillance Is Dead, Long Live Cisco Meraki Video Surveillance on Feb 11, 2020
A dozen years ago much of the industry thought that Cisco was destined to dominate video surveillance. They stumbled repeatedly, failing. Now it is...

Most Recent Industry Reports

Remove Dahua and Hikvision Equipment "Immediately" Or Else Banned From US Government Contracts on Jul 10, 2020
The US government has directed contractors to remove covered equipment, such as Dahua, Hikvision, and Huawei Hisilicon products, "immediately." If...
ZeroEyes Presents Firearm Detection Video Analytics on Jul 09, 2020
ZeroEyes presented its Firearm detection Video Analytics system at the May 2020 IPVM Startups show. A 30-minute video from ZeroEyes...
Directory of 162 "Fever" Camera Suppliers on Jul 09, 2020
This directory provides a list of "Fever" scanning thermal camera providers to help you see and research what options are available. There are...
Clinton Public View Monitor (PVM) Mask Detection Tested on Jul 09, 2020
Face mask detection, or more specifically not wearing one, is expanding amidst the pandemic. Clinton Electronics has added this capability to their...
These Florida Real Estate Agents Are Now Selling "SafeCheck USA" Temperature Detectors on Jul 09, 2020
The "Kakon Brothers", William and Nathan, are self-described "south Florida Power Agents specializing in Luxury Real Estate" who "have closed over...
Avigilon ACC Cloud Tested on Jul 08, 2020
Avigilon merged Blue and ACC, adding VSaaS features to its on-premise VMS, offering remote video and health monitoring that was previously limited...
Hikvision's India Dominance Faces Threat on Jul 08, 2020
While Hikvision has become a dominant video surveillance provider in India, recent tension between the governments of India and the PRC is...
The US Fight Over Facial Recognition Explained on Jul 08, 2020
The controversy around facial recognition has grown significantly in 2020, with Congress members and activists speaking out against it while video...
Sperry West / Alibaba Tablet Temperature Measurement Tested on Jul 07, 2020
In April, we ordered a ~$500 temperature tablet from Alibaba. We set it to the side while doing 18 other temperature screening tests but, after...
Facial Recognition: Weak Sales, Anti Regulation, No Favorite, Says Security Integrators on Jul 07, 2020
While facial recognition has gained greater prominence, a new IPVM study of security systems integrators shows weak sales, opposition to...