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

By: 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.

** ****,******** ****** $** ********** ******** *** ********* -******************. ***, ******** ** raising $*** ******* ****.

** **** ****, ** review ***** ********* ******* and ******* *** ********* impact ** **** ****.

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

*****, ***************** * *** $** million**** *****. *** **** day ** ************ ** $*** *********** ** ****** ** go ** **** ** $115 *******.

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

******** *** **** ** cash, **** ****** **** fund *******. ** ***** **** ****** ********:

"** ******** **, ****, we **** **** *** cash *********** ** $***.* million (**** - $**.* million). ****** *** **** ended ******** **, ****, we ********* **** ***** from ********** ** $**.* million (**** - $**.* million)."

** ** **** ** believe **** ******** ************ $*** ******* ** *** of *** ******** $*** million ** *********** **** (even ** **** ****** manufacturing, *****, ***.).

***********, *******, ******** **** have ~$*** ******* **** in *** ****.

*********?

********* **** **** *** call, ******** ********** ************, ********* major **** ** **** were ******** *** **** they ***** ******** ** look *** ************ ******** or ****** ** ********** to ********** ***** ********, naming ************* ********* ****** control ** ********* ********* as *** ***** ** potential.

*** ** *** ************* for *** **** *******, their *********** *** ****** laconic, **** **** *** stock *********, "*** ******* intends ** *** *** net ******** **** *** offering *** ******* ********* purposes *** *** ********* strategic ************."

***********

** *** **** ** months, ******** *** ****** ** tripled, ******** * ****** capitalization ** $*.* *******, though ** *** **** 4 ******, *** ***** has ******* *** ******** pulled ****, ** **** chart *****:

** ** *** ** a **** **** ** raise ***** ** **** have * ***** '*******' valuation.

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

** ***** ************ *** the **** ****** ****** for **** **** *******, as *** ****** ***** raised ***** ** ** unnecessary *** ******* ****** given ***** ******* **** position *** *********** ********.

*** ********* ***: **** companies **** *****? *** hard ***** ** ** to ********* **** **** diverse ************ / ********?

 

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 unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports on Acquisition

90+ Companies Profile Directory on Nov 05, 2019
While IPVM covers the largest companies in the industry regularly (like Axis, Dahua, Hikvision, etc.), IPVM strives to do a profile post on each...
Alarm.com Acquires OpenEye on Oct 21, 2019
Alarm.com is targeting commercial expansion and now they have a commercial cloud VMS with the acquisition of OpenEye. In this note, based on...
Dahua, Hikvision, Huawei US Ban Rules Released on Aug 08, 2019
The US government has released rules on how the 2018 NDAA ban of Dahua, Hikvision, and Huawei will be implemented when it takes effect in 5...
Motorola Acquires Watchguard, Adds to Vigilant And Avigilon on Jul 15, 2019
2 years ago, Motorola had no position nor relevancy to video surveillance. Now, they own major video surveillance, LPR and body camera providers...
ADT Eliminating Acquired Brands, Unifying Under 'Commercial' Brand on Jun 14, 2019
ADT is eliminating the brands of the many integrators it has acquired over the past few years, including Red Hawk, Aronson Security Group (ASG),...
OpenALPR Doubles Prices on Jun 06, 2019
There is no 'race to the bottom' in cloud / AI video surveillance. In May, Verkada increased their prices. Now, OpenALPR is doing the same with a...
"New" Arecont Fixes Failures "Without A Fight" on Jun 05, 2019
The "old" Arecont was infamous not only for its camera failures but for making their "partners" fight to get them fixed. IPVM drew the ire of...
Panasonic Sells Off / Spins Out Security Business on Jun 02, 2019
Panasonic has sold off its security systems business to a private equity firm, after suffering years of challenges. The new company, which will...
Pelco Sold Off, Now Independent on May 28, 2019
Pelco has been sold off by Schneider Electric, completing Schneider's terrible tenure, but giving Pelco a chance at life. IPVM spoke with...
San Francisco Face Recognition Ban And Surveillance Regulation Details Examined on May 14, 2019
San Francisco passed the legislation 8-1 today. While the face recognition 'ban' has already received significant attention over the past few...

Most Recent Industry Reports

ADT Stock Surges - "Leading The Commercial Space" on Nov 15, 2019
Don't call it comeback... but maybe call it a commercial provider. ADT, whose stock dropped by as much as 2/3rds since IPOing in 2018, has now...
Gatekeeper Security Company Profile - Detecting Faces Inside Vehicles on Nov 14, 2019
Border security is a common discussion in mainstream US news and politics, as is the use of banned Chinese equipment by US Government agencies....
Hikvision CEO And Vice-Chair Under PRC Government Investigation on Nov 14, 2019
In a surprising and globally covered move, Hikvision CEO Hu Yangzhong and Vice-Chairman Gong Hongjia are being investigated by China's securities...
Camera Field of View (FoV) Guide on Nov 13, 2019
Field of View (FoV) and Angle of View (AoV), are deceptively complex. At their most basic, they simply describe what the camera can "see" and seem...
UK Big Brother Watch: Hikvision Is 'Morally Bankrupt' on Nov 13, 2019
UK civil liberties advocate Big Brother Watch has condemned Hikvision as being 'morally bankrupt' following IPVM exposing Hikvision marketing...
Color Low Light Mega Camera Shootout - Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision, Panasonic, Speco, Sony, Vivotek on Nov 12, 2019
This is the biggest color low light shootout ever, testing 20+ super low light models from 10 manufacturers: Increasingly, each manufacturer...
Wireless / WiFi Access Lock Guide on Nov 12, 2019
For some access openings, running wires can add thousands in cost, and wireless alternatives that avoid it becomes appealing. But using wireless...
Hikvision Global News Reports Directory on Nov 11, 2019
Hikvision has received the most global news reporting of any video surveillance company, ever, ranging from the WSJ, the Financial Times, Reuters,...
Hikvision Markets Uyghur Ethnicity Analytics, Now Covers Up on Nov 11, 2019
Hikvision has marketed an AI camera that automatically identifies Uyghurs, on its China website, only covering it up days ago after IPVM questioned...
Open vs End-to-End Systems: Integrator Statistics 2019 on Nov 11, 2019
Preference for open systems is on the decline, according to new IPVM statistics. We asked integrators: For video surveillance systems, do you...

What IPVM Is

The world's leading authority on video surveillance, with 200,000+ visits monthly.

  • Articles on cameras, video analytics, VMS, and trends
  • Tests showing actual performance and problems
  • Courses in surveillance, access control, etc
  • Camera Calculator for designing systems

Dedicated To Independence

We're dedicated to staying independent and objective. We're the only industry source to refuse any and all advertisements, sponsorship, and consulting from manufacturers. Why?