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.

6 reports cite this report:

Hikvision Partners With Intel Movidius For Artificial intelligence Cameras on Oct 25, 2016
The world's largest camera manufacturer is partnering with the worlds largest semiconductor company to create a series of intelligent...
Axis Video Revenue Down (Q3 2016) on Oct 20, 2016
An important milestone. Axis revenue for video products is down year over year. But Axis is now focusing on 'diversification'. In this report, we...
Axis Acquires Retail Analytics Developer Cognimatics 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 07, 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

Deep Learning Surveillance Startups Deep Problem on Jun 23, 2017
The undeniably good news for the video surveillance market is that we are seeing the rise of more startups than in many years. The cause of this...
Avigilon Announces RADAR-Based Presence Detector on Jun 22, 2017
RADAR is gaining momentum within physical security. Two months after Axis announced a network radar detector, Avigilon has announced a RADAR-Based...
Panasonic Sells VSaaS Company To Eagle Eye (Cameramanager) on Jun 15, 2017
While many VSaaS companies might hope for one acquisition, Cameramanager has managed to get acquired twice. First they were acquired by Panasonic,...
Ex-ADT President And PE Firm Pay $200M+ For Alarm Dealer Guardian on May 31, 2017
Private equity firms are on the hunt for security companies with strong RMR numbers. One such security company, Guardian Alarm, was recently...
PureTech Video Analytics Examined on Apr 21, 2017
PureTech's analytics were chosen for a US border protection system (see related post), which the company claims no other analytics vendor was able...
US Border RVSS / Video Analytics System Examined on Apr 21, 2017
US Customs and Border Protection has been rolling out a video analytics-based detection system along the US/Mexico border, with detection ranges...
Dell EMC Surveillance Division Profile on Apr 20, 2017
With revenue growth from traditional IT customers slowing, Dell has set a focus on the security industry as a market where the company can offer...
Best and Worst - ISC West 2017 Show Report on Apr 10, 2017
IPVM went to Las Vegas, examining what vendors are showcasing and what is new. Attendance was up, according to the show, and was certainly well...
Deep Science - Active Threat Cloud Monitoring Startup on Apr 03, 2017
Deep learning for $2 a day for a system that automatically detects guns and masks, alerting the police to robberies and threats? A US startup is...
ObjectVideo Acquired by Alarm.com on Mar 14, 2017
Once potentially the most recognized name in video analytics, ObjectVideo has effectively been sold for pieces. Alarm.com has now acquired what...

Most Recent Industry Reports

Avigilon Announces RADAR-Based Presence Detector on Jun 22, 2017
RADAR is gaining momentum within physical security. Two months after Axis announced a network radar detector, Avigilon has announced a RADAR-Based...
Covert Cloud Camera Service Launching (KJB) on Jun 22, 2017
Cloud IP cameras, for consumers, has become increasingly commonplace. However, covert cameras, lag there, with few options. Now, North America's...
Manufacturers Shipping Unlicensed H.265 Products on Jun 22, 2017
While H.265 support in video surveillance is growing, IPVM's research shows that most surveillance manufacturers are shipping H.265 products with...
Uniview Low-Cost Bullet PTZ Tested on Jun 21, 2017
Uniview is offering a HD zoom bullet camera, the IPC742SR9-PZ30-32G, with an integrated pan / tilt positioner, for the price of a low-cost...
QSR Video Surveillance Best Practices on Jun 21, 2017
Fast food restaurants or QSRs (quick service restaurants), are frequent victims of crime and fraud. Because they are open late, deal with cash, and...
45 Drives 'Lowest Cost' Enterprise Storage Company Profile on Jun 21, 2017
45 Drives claims the "lowest cost per Hard Drive Slot in the industry." But who or what is '45 Drives'? What started as a product design to...
No Hack, Still Liable, Court Finds ADT on Jun 20, 2017
Recently, ADT has been in the news for a $16 million settlement for a cyber security vulnerability class action suit. One of the most important...
Resolver / PPM 2000 Incident Management Platform Profile on Jun 20, 2017
You might have seen the company whose employees wear hockey jerseys at trade shows and wondered "what do they do?" PPM 2000 has been active in...
Axis P3225 Mk II Tested Vs. Original on Jun 20, 2017
Axis has released a number of 'Mk II' versions of their cameras, which are the same fundamental camera but with specific improvements. We tested...
Directory of 40 IP Camera Manufacturer Discovery Tools on Jun 19, 2017
Locating the IP address of a DHCP client or factory defaulted device on a network is often a difficult task.  In another report, we discussed...

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