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

Author: John Honovich, Published on Mar 18, 2014

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.

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Comments (15)

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?

New shares.

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.

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

Or DSC

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

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...

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.

What about something like Prismskylabs?

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.

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

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

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.

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.

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'. :)

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