Avigilon Loads Up With $200 Million More

By John Honovich, Published Apr 08, 2015, 12:00am EDT

Evidently they are not done yet.

In the past 18 months, Avigilon raised $169 million, then bought nearly $100 million in patents, VideoIQ for $32 million, and a building for $42 million.

Now, Avigilon has secured another $200 million USD in funds.

In this note, we examine the details and what this means for Avigilon's continued expansion.

The $*** *******

****** *** **** * raises ***** **** ******, this ************ ** ******** ****, ************ * $*** million ****** ********. ** has * * **** term *** ** ********* interest **** ** ~*%. It ** ******* **** 3 ********: $*** ******* for ***********, $** ******* for ******* ******* *** $40 ******* *** *** new ********* ********.

**** ***********, ** *** acquisition ****, ******** ** already ******* **** $** ******* to ***** *** ** acquisition *****, ***** ************* builds **** ********'* **** reserves. **** *********, *** deal ******** ** ******** $50 ******* ********** (***** would ***** *** ***** to $*** *******) *** more ************.

Barriers ** ******

********* **** **** ***** on ********'* **** * fund ******. ** ******** 2013,******** ****** $** ********* $**.** *** *****. In ***** ****, ************** $*** ********* $** *** *****. Today, ********'* ****** ***** at $**.** *** *****.

******* ** *** **** performance *** *** *****'* ********* ** *** **** year, ** ******* ** would **** **** ***** hard *** ******** ** raise **** ***** ** funding *** ******.

Pros *** **** ** *** $*** *******

**** ***** ** * lot ** ***** *** new ************. ** *** end ** ****, ******** had **** *** **** equivalents ** $**.* *******. Now **** **** *** $80 ******* '****' **** the ** ********, **** $20 ******* **** *********** available ** ****** *** acquisitions, **** *** $** million ******. *** ** this **** ******** ** aggressive ** ********* **** fairly ******** ******** ** surveillance *********.

**** ******** ** **** the cost ** ***** ***, especially ***** ** ******** ******* for ********* ** ***** as ****** ***********.

*** *** ******** ** the * **** ****. If ****** ** **** for ********, **** *** easily ****** *** ****** line. ** ****** ** really ****, **** *** raise ******. *******, ** Avigilon **** ******** ** there ** * *********, Avigilon **** **** ************ funding ****, ***** ***** put **** ******** ** the ********.

Who **** **** *** ****?

*** ***, ******, **** is * ****** ***** indicator **** ******** **** continue ** ** ********** and ** ****** ** buy **** ********* ** the **** ****.

Comments (2)

Undisclosed #1

IPVMU Certified | 04/08/15 09:05pm

What's the rationale for drawing down acquisition funds at any point before closing a deal?

Isn't the whole point of a credit line to allow you to instantly draw down cash as you need it, but not before? Who wants to service 80 million in debt for no reason?

Unless it was a covenant of the line, I expect it is going somewhere very soon, agree?

John Honovich

IPVM | In reply to Undisclosed #1 | 04/08/15 09:12pm

"Who wants to service 80 million in debt for no reason?"

Someone who has very near term plans to buy another company. That's my guess.

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