Avigilon Acquires VideoIQ

Yes, no Avigilon employee is allowed to speak with IPVM....

But look on the bright side, this most certainly means you will be passing him on the comment leaderboard shortly:

Sadly, its been almost two weeks since the 'acquisition' and still BK's all-time number refuses to budge from its lofty yet vulnerable perch of 358...

More than once I have been drawn to a flurry of comment activity as ravenous posters skillfully dissect the 'fatted' manufacturer, integrator, distributor or sacred cow du jour, expecing to see K artfully executing the coup de grace, but when the dust settles seeing nothing but knives and blood... and shadows...

Where for art thou, Karas?

They might consider buying or producing their own alarm panel. That would cover all 3 major aspects of security (video, access and alarm) and maybe finally bring the alarm panel world out of the prehistoric era.

Well to be fair to Avigilon, that it is not entirely correct. Avigilon has a line of H.264 Cameras that are ONVIF compliant and they can be used with other third party platforms...

James, some context for others. That scenario is based on real time monitoring, immediate response, talk down and the hope that it scares off crimes in progress. Otherwise, one is still left to call responders (police, security guards) to intercept / apprehend.

I bet they will sell a ton of Rialto IP units to complement existing Avigilon cameras. That's the low hanging fruit.

That would imply Schneider, GE or someone else would be interested in taking them out at this point.

I've been thinking about the possibility of a that happening with Avigilon and am not convinced it will happen in the very near term. Their revenue and bottom line are growing at a very rapid pace, but based on their current run rate, sales only represent 1-1.5% of the global video surveillance market's estimated value for 2013, according to this article from July 2012, if those figures still hold true, and they seem to be based on what's been touted about lately. And the market is expected to continue to grow at close to a 20% annual clip for at least the next few years.

As John pointed out in previous posts, the current market valuation for Avigilon, although probably warranted given their track record up to now, is quite rich and that leaves only a select few candidates with the resources to afford a buy out of this size.

I'm thinking it's likely potential acquirers might wait out a little longer to see how they fare with the Redcloud and VideoIQ integrations. They've obviously executed very well up to now, but they haven't really provided any results that would include those acquisitions yet and that probably won't come until at least Q1 14, at which point the success of those products additions could become somewhat clearer. Any real interest in acquiring them might not come until the second half of 2014, if something was to materialize on that front this year.

Then again, if others expect they will continue to deliver as well as they have in the future, that would mean a much richer offer would need to be made down the road.