Axis Acquires Video Analytics Firm Citilog

Author: John Honovich, Published on Feb 01, 2016

Axis rarely makes acquisitions. They get acquired, of course, (i.e., by Canon for $2.8 billion USD last year) but they generally do not buy other companies, typically focusing on internal developments and partnerships.

Now, Axis has acquired a video analytics firm named Citilog.

In this note, we examine Citilog's revenue, offerings, fit within Axis and how this compares to Avigilon and FLIR.

Who is Citilog?

Citilog is a small video analytics developer focused on the traffic market, founded almost 20 years ago in France.

Their annual revenue is in the ~$6 million EUR / USD range and they are modestly profitable, according to their most recent financials. However, the company has not really grown in the past decade. Despite raising at least 3 rounds of funding, including 4.2 million Euros in 2005, headcount and revenue has only slightly increased since 2008.

Price Paid / Valuation

Axis did not disclose the valuation but given Citilog's low growth, we doubt they would have needed to pay much of a premium (perhaps 2x revenue or the ~10 - 15 million EUR range).

Update: Axis disclosed the price paid as 93M SEK / ~$11.5 million USD in their Q1 financial report, within the range we estimated initially.

Given Citilog's past fund raising and the long wait for an exit, the investors might have broken even but not a great return.

Get Video Surveillance News In Your Inbox
Get Video Surveillance News In Your Inbox

Market Fit

Citilog is a specialist in an area outside conventional security / surveillance. They focus on the Intelligent Transportation Systems (ITS) market, where emphasis is on using analytics to detect traffic incidents, control intersections, gather traffic data, etc.

As such, this does not compete much with existing Axis offerings or partners.

Axis Positioning of Citilog

Overall, this is a small addition to Axis (whose revenue is roughly 150x larger than Citilog) that might help them in a segment outside the current traditional market which is in a 'race to the bottom'.

Analytics for Axis

Historically, Axis has viewed analytics as a partner oriented solution, where Axis provides the platform and their partners (ACAP) bring the analytics. When Axis declared the MP race over 3+ years ago, they hoped to drive growth with the iPhone / app store model. This has, to be kind, not met their expectations.

In 2015, Axis released their own 'robust' analytics that were, unfortunately, anything but as our test results showed.

We suspect this acquisition, along with Axis releasing their own analytics, is a sign of Axis future analytics plan, to more tightly bundle their own analytics. We also believe this is the prudent move, so long as they can develop / buy solid quality analytics, as integrating / cross-selling third party analytics creates problems both for marketing and for implementation.

Competitive Matchup - Avigilon and FLIR

The most direct competitive matchup is FLIR, who acquired Traficon in 2012 for $46 million. FLIR is now using Traficon's analytics in their newer thermal cameras (the FC-series). Combined with FLIR's acquisition of Lorex (in 2012 as well) and DVTel (in 2015), we see Axis and FLIR on path to be more direct rivals.

Also, while Avigilon does not offer an ITS solution, they are the biggest player in analytics overall (from their VideoIQ as well as their OV patent acquisitions). Now, Avigilon's new H4 camera release is including analytics 'for free' in every H4 camera which is a milestone given Avigilon / VideoIQ's strong track record.

As the Chinese continue to race to the bottom, Axis and other Western manufacturers, will need to step up their analytic offerings to differentiate and justify the sale of their cameras / offerings.

4 reports cite this report:

Axis Acquires Retail Analytics Developer on Jun 03, 2016
Two acquisitions in a week and the third in three months for Axis. At this point, it is pretty clear - Axis is on a buying spree. On the other...
Axis Acquires Intercom Manufacturer 2N on May 30, 2016
Axis has now made its second acquisition in the past 3 months. And it is another company most industry people know little about. In this note, we...
ISC West 2016 Best and Worst on Apr 10, 2016
ISC West 2016 had very strong attendance and moderately strong new products, following a year of unprecedented acquisitions. Traffic was almost...
New Products Directory - ISC West 2016 on Apr 01, 2016
It has been a busy few months in the industry, with new product announcements, many acquisitions and lots of moves. Here is a directory of them all...
Comments (6): PRO Members only. Login. or Join.

Related Reports

Nest Cam Outdoor Tested on Sep 23, 2016
After years of claiming an outdoor model was "coming", addressing their biggest user demand, Nest has finally released their Outdoor Camera, an...
History of Video Surveillance on Sep 22, 2016
This is a concise history of video surveillance covering the past decade.  The goal is to help professionals newer to the industry understand...
1 New Acquisition Per Year Planned for Qognify (Former Nice Security) on Aug 23, 2016
Want to be acquired? Qognify, the former Nice Security Group, has big money behind it and the plans for multiple acquisitions. In this note, we...
Directory Of 67 Video Analytics Suppliers on Aug 22, 2016
This directory provides a list of video analytics providers to help you see and research what options are available. [premium_content] Video...
VMS Developer Lensec Acquired on Aug 10, 2016
Independent VMS companies have been popular acquisition targets in the security industry the past few years (with Tyco acquiring Exacq, Canon...
Logipix 20MP, 140MP and 200MP Cameras Examined on Jul 20, 2016
Looking for an Avigilon alternative? Logipix, based in Hungary, has created their own super high resolution end-to-end solution, featuring 20MP -...
The Chinese / Ingram Micro Deal Has A Significant Chance of Being Killed on Jul 18, 2016
A Chinese airline / shipping company buying a Western IT distributor? Sounds like a bad deal. Nonetheless, earlier this year, Ingram negotiated a...
Hikvision Nvidia Supercomputing Partnership on Jul 18, 2016
Hikvision is gearing up its supercomputing efforts. Partnering with Nvidia, one of the US' largest tech companies, doing $5 billion revenue...
US Government Agency Highlights Analytics Failure on Jul 15, 2016
Count the US government among those not satisfied with video analytics. A US government agency held a workshop on video analytics for public...
Qognify Suspect Search Examined on Jul 01, 2016
All you have is a description of a suspect? White guy, black hair, mustache, heavy, green jacket? No problem, says Qognify, formerly NICE...

Most Recent Industry Reports

VLANs for Video Surveillance on Sep 26, 2016
Many people confidently say to 'use VLANs' as an answer to IP video networking problems and as a way to signal expertise. But how should VLANs be...
Ambarella CEO Admits H.265 and 4K Not Popular on Sep 26, 2016
Ambarella is the main chip provider for high-end surveillance cameras driving higher resolution and new CODECs. While Ambarella has been pushing...
Nest Cam Outdoor Tested on Sep 23, 2016
After years of claiming an outdoor model was "coming", addressing their biggest user demand, Nest has finally released their Outdoor Camera, an...
ACTi Refuses Race To The Bottom, Shifts To Solutions on Sep 23, 2016
The original low cost IP camera disruptor was ACTi. Back in the 2008 - 2010 time frame, Taiwanese manufacturer ACTi challenged the Western and...
You Get Robbed, Canary Will Pay You Up To $1,000 on Sep 22, 2016
Canary is trying to break the status quo in DIY security, first by raising over $40 million, and now a revamp of their monthly services package...
Milestone Ends Development of "Enterprise" VMS on Sep 22, 2016
Milestone 'Enterprise' was one of the first enterprise video management software offerings, selected by many early adopters of IP video. However,...
History of Video Surveillance on Sep 22, 2016
This is a concise history of video surveillance covering the past decade.  The goal is to help professionals newer to the industry understand...
Access Control Course Fall 2016 on Sep 22, 2016
IPVM offers the most comprehensive access control course in the industry. Unlike manufacturer training that focuses only on a small part of the...
Totally Wireless IP Camera (IPVideo Corp NomadHD) on Sep 21, 2016
Wireless battery powered cameras have been a surveillance pipe dream for years, limited by camera power consumption, battery technology, and...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact