Avigilon to Raise $100 Million, Who Will They Acquire?

By John Honovich, Published Mar 18, 2014, 12:00am EDT (Info+)

In 2013, Avigilon raised $69 million and acquired two companies - RedCloud and VideoIQ. Now, Avigilon is raising $100 million more.

In this note, we review their financial reports and examine the strategic impact of this move.

*****, ***************** * *** $** *********** *****. *** **** *** ** was********* ** $*** *********** ** ****** ** ** ** high ** $*** *******.

Lots ** **** *******

******** *** **** ** ****, **** before **** **** *******. ** ***** **** ****** ********:

"** ******** **, ****, ** **** cash *** **** *********** ** $***.* million (**** - $**.* *******). ****** the **** ***** ******** **, ****, we ********* **** ***** **** ********** of $**.* ******* (**** - $**.* million)."

** ** **** ** ******* **** Avigilon ************ $*** ******* ** *** ** *** existing $*** ******* ** *********** **** (even ** **** ****** *************, *****, etc.).

***********, *******, ******** **** **** ~$*** million **** ** *** ****.

*********?

********* **** **** *** ****, ******** ********** ************, ********* ***** **** in **** **** ******** *** **** they ***** ******** ** **** *** intellectual ******** ** ****** ** ********** to ********** ***** ********, ****** ************* developed ****** ******* ** ********* ********* as *** ***** ** *********.

*** ** *** ************* *** *** fund *******, ***** *********** *** ****** laconic, **** **** *** ***** *********, "The ******* ******* ** *** *** net ******** **** *** ******** *** general ********* ******** *** *** ********* strategic ************."

***********

** *** **** ** ******, ******** *** ****** ** *******, ******** * ****** ************** ** $1.3 *******, ****** ** *** **** 4 ******, *** ***** *** ******* and ******** ****** ****, ** **** chart *****:

** ** *** ** * **** time ** ***** ***** ** **** have * ***** '*******' *********.

************?

** ***** ************ *** *** **** likely ****** *** **** **** *******, as *** ****** ***** ****** ***** to ** *********** *** ******* ****** given ***** ******* **** ******** *** operational ********.

*** ********* ***: **** ********* **** sense? *** **** ***** ** ** to ********* **** **** ******* ************ / ********?

 

Comments (15)

Rukmini Wilson

03/18/14 05:20pm

So it may be a good time to raise money as they have a quite 'healthy' valuation.

If I'm a founder I'm probably not interested in diluting my equity position unless there is a clear target(s) in mind, even at market price. Are they selling company owned shares or printing them up?

John Honovich

IPVM | In reply to Rukmini Wilson | 03/18/14 06:36pm

New shares.

Avatar

Scot MacTaggart

03/18/14 05:43pm

I'm guessing it's a network-enabled intrusion system. That may not be the only thing the acquired company sells, but that's the last item on the mainstream buyer's checklist when they build a security technologies program. Avigilon could then present an all-Avigilon suite in the places where Honeywell, Tyco, UTC and Bosch offerings would be considered.

DMP seems like the right size, technology and location.

John Honovich

IPVM | In reply to Scot MacTaggart | 03/18/14 06:38pm

DMP is an interesting suggestion, both for its tangential position to video and access as well as it being an independent company.

Larry Tracy

03/20/14 03:00pm
Or DSC

John Honovich

IPVM | In reply to Larry Tracy | 03/21/14 02:54am

DSC is part of Tyco Security Products, so that is likely a more difficult deal than buying an independent like DMP.

Sean Patton

03/21/14 03:28pm

What about a company like Veracity? I dont know necessarily what Veracity's market cap/positioning is, just thinking an infrastructure/storage play could be ideal for them...

John Honovich

IPVM | In reply to Sean Patton | 03/21/14 04:33pm

Veracity is certainly complimentary to Avigilon, independently own company, probably available within the range that Avigilon could afford to pay cash. It's a contender.

Alex K

03/21/14 03:47pm

What about something like Prismskylabs?

John Honovich

IPVM | In reply to Alex K | 03/21/14 04:35pm

I am pretty sure Prism Skylabs is worth more than Avigilon ;)

Just kidding but Prism is a Valley startup with most certainly an obscene valuation ($50, $100 million or so) relative to its revenue / performance that I doubt Avigilon would be willing to pay for (nor should they).

Prism might succeed or fail, but given its focus on just one vertical (retail) and the high valuation they would demand for an acquisition, I doubt it would be a match.

Undisclosed End User #1

03/23/14 12:45pm

Mobotix's Ralf Hinkel will lose control by selling stock, this is gonna leave him with less then 50%

John Honovich

IPVM | In reply to Undisclosed End User #1 | 03/23/14 09:08pm

How does Mobotix founder's activities relate to Avigilon fund raising?

Undisclosed End User #1

In reply to John Honovich | 03/24/14 05:57pm

it fits the size of fundraising targeted by Aviglon. But more important, up to now dr Hinkel had a majority and he now seems withdrawing from Mobotix.

John Honovich

IPVM | In reply to Undisclosed End User #1 | 03/24/14 07:46pm

It does not fit the size of the fundraising. Mobotix has a market capitalization of ~$260 USD which is more than all the cash Avigilon would have, in the best case scenario, after the fund raising.

Rukmini Wilson

In reply to John Honovich | 03/24/14 10:16pm

In defense of A, perhaps he relied on the cover story chess graphic too much. A Pawn (value 1) taking a Queen (value 9) extended metphorically would indicate a highly leveraged buyout the kind of which we haven't seen since the late 80s. Rook takes Knight is probably a better 'move'. :)

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts reporting, tutorials and software funded by subscriber's payments enabling us to offer the most independent, accurate and in-depth information.
Loading Related Reports