Avigilon Raises $69 Million for Potential Acquisitions

JH
John Honovich
•Published Nov 08, 2013 05:00 AM

Hot off doubling revenue, Avigilon has raised $69 million earmarked for 'general corporate purposes and potential strategic acquisitions.' Do they need the cash? Who should they acquire? We explore inside.

[Update: Avigilon raised $100 million more.]

Timing *** ********

***** *** ***** ****** ~**% *** next *** *** ** *** ** an *** ******* * ******* ****** valuation, **** ** ** ***** **** for **** ** ***** *****. ***** $69 ******* ** *********** *** *** surveillance ********, ** ** **** *% of ***** ******* *********. ** ********, their ****** *** *** ***** $*** million **** *******'** * ***** ***.

Cash *** ****** ***********

******** **** *** ************ **** *** cash *** *** ********* *********** ****. They ****** ~$** ******* '**** *** cash ***********' ** **** ** ** 9/31/2013. ********, **** ********* $*.* ******* in **** **** ********** ****** ** 2013. ** ****, **** *** ******* burning **** *** ***** ** **.

******** *** ********* ******* ******* ** production, *** ***** ******** ** **** they **** ********** ******** *** $*** million ** ***** (**** *** ** $200 ******* ****** *** **** *********) and **** ******* ********* ***** **** have ******* ***** ** *** *** million *****. ** **** ** ******** to ** *** ******.

**** ****, **** **** ****, **** could ******* ** **** *********** **** faster *** *** **** *** ****** they *** ************* ****?

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

** ******* *** **** ****** *** of **** **** ** *** ************.

******* **** ****, ************ ** ****** ***************** ******** ********, ********, ** *** to ***** ** ******* *** *** software. **, ***, **** **** ***** they *** ******* ** ******* ***, two, **** **** **** ** **** clear **** **** ******'*** ** ***' ******** ** ******* as **** ** **** **** ** possible.

********* ** *** **** ******** ******. They ** *** **** *** ********* of ***** *** (************ *********/********) **** analytics *** **** ********* ** ****** enterprise ******** (**** **** ******* *** more ******** ******** ********)*** **** *** ***** ****** ** be ***** *** ****** ****(********* **** ********* ************ ** *** market ******* **** *********).

*******

******* ***** *** **** ***** ** us. **** **** ******* ***** ******, ***** **** (*** * ***** achievement *** *********) **** **** **** extensive ********** ** **** ******* (******* important **** **** ******** *****). ******* seems ** ** ***** ********** **** (for *** **** ********* ******)*** **** **** **** ****** *** a **** ****, *** *** *************** **** ****** ****** **** *****.

******** **** ********** *** ******** (******** in ***** **** ******** ** ********'* revenue) *** **** ********'* ******* ********* (~6x ***** ** *****), * *** VideoIQ ***** ** **** ******* ** a **** ** * ******* *********.

******* ** *******, ***** *** *** a *** ** *******. ***** ** is ********* ***.  ********* ***** ** ***** ******* **** questionable ***** ******* **** ******** ***** certainly *** *** * **** *** price (****** ** **** *** **** to ** ******** ***** ** ** bargain ******* ****).

Who ****?

*** ** **** **** ***** ** thoughts ** *********** *******.

Comments (18)
UM
Undisclosed Manufacturer #1
•Nov 08, 2013

Why not BRS Labs....... just kidding.

JH
John Honovich
•Nov 08, 2013
IPVM
In reply to Undisclosed Manufacturer #1

Could you imagine two great marketers like Avigilon and BRS joining forces?!!!

DB
Dan Bilodeau
•Nov 08, 2013

It would have to be something complimentary to pushing Enterprise higher. Like some for of PSIM maybe?

JH
John Honovich
•Nov 09, 2013
IPVM
In reply to Dan Bilodeau

I could see a PSIM, but what independents are left? - Vidsys, CNL? There's definitely precedent - Verint and NICE, both companies will similar business models bought PSIMs. That said, I am not sure how much value they are getting out of them.

On the other hand, why not buy analytics and PSIM :)

KG
Konstantin G
•Nov 09, 2013

What abot Axxon , they have analytcs and and PSIM ?

JH
John Honovich
•Nov 09, 2013
IPVM
In reply to Konstantin G

No, I think that's incredibly unlikely, because Axxon is primarily a VMS / recorder provider, so the overlap would be huge. Also, Axxon claiming they are a PSIM is a stretch.

CN
Curtis Nikel
•Nov 10, 2013

What about Fortem, they appear to be getting some traction?

JH
John Honovich
•Nov 10, 2013
IPVM
In reply to Curtis Nikel

Maybe there's a Canadian connection there!

I think Fortem would be an interesting fit. Clearly complimentary to Avigilon, engineering focused/led company, and since they have not taken huge VC funding, they probably are open to a reasonable valuation. Good suggestion.

UM
Undisclosed Manufacturer #1
•Nov 10, 2013

Since they seem to have both a popular VMS and line of cameras, maybe an encryption software company to provide secure, native cimmunications between the two.

JH
John Honovich
•Nov 10, 2013
IPVM
In reply to Undisclosed Manufacturer #1

Like who? That seems like a real niche, in the sense that it's a feature more than an additional product offering (like PSIM or analytics).

UM
Undisclosed Manufacturer #1
•Nov 10, 2013
In reply to John Honovich

I couldn't say off the top of my head, but they don't necessarily have to buy an encryption technology company, they could always license it. But having native encryption technology might attract more business from IT tech savy customers who are security obsessed (rationally or not) and maybe government/military entities. Imagine if they were able to lobby to have some sort of native encryption added to bid specifications- how many competitors would they have?

JH
John Honovich
•Nov 11, 2013
IPVM
In reply to Undisclosed Manufacturer #1

In general, anything that requires support on both sides (camera and VMS) is an advantage to Avigilon (if they can get customers to buy in - like JPEG2000) because most of their main competitors do not sell end to end 'solutions' and would have to coordinate support. I suspect if they did that licensing would be simpler/easier because it's an incremental feature.

UI
Undisclosed Integrator #2
•Nov 12, 2013

Vidsys, videoiq, network optix

JH
John Honovich
•Nov 12, 2013
IPVM
In reply to Undisclosed Integrator #2

Network Optix is a direct competitor to Avigilon's VMS. Why would Avigilon buy Network Optix?

UI
Undisclosed Integrator #2
•Nov 12, 2013
In reply to John Honovich

You answered your question before you asked it.

JH
John Honovich
•Nov 12, 2013
IPVM
In reply to Undisclosed Integrator #2

So you think Avigilon is going to buy direct competitors? Makes no sense.

UM
Undisclosed Manufacturer #3
•Nov 12, 2013

They need a software centric company to make it all work otgether. Plug nad play, with storage and server that can handle the load.

JH
John Honovich
•Nov 12, 2013
IPVM
In reply to Undisclosed Manufacturer #3

Don't they already have that? Avigilon cameras automatically discovered / updated / managed by Avigilon VMS (ACC). They pre-load the software on Dell boxes (as they have done for years) and it works all together, no?