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 09, 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

FLIR Acquires Drone Manufacturer For $134M on Dec 01, 2016
FLIR has acquired Prox Dynamics, a Norwegian maker of small military-grade drones, for $134M.  FLIR president Andy Teich provided additional...
Top Surprises in the Video Surveillance Industry 2016 on Nov 29, 2016
  The top 3 surprises of 2016 for integrators surveyed by IPVM were: The race to bottom, repeating 2015's Top Surprise Result New -...
Hikvision's ImageNet Win Analyzed on Nov 28, 2016
Hikvision is pushing hard to move up market and win at video analytics. One notable sign is Hikvision touting their #1 ranking for an ImageNet...
China Hot For Intelligent Video on Oct 27, 2016
The clear top theme at the 2016 Security China show has been intelligent video. This is a big shift from past years, and China's historical focus...
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...
FLIR Buys Point Grey For $253M on Oct 04, 2016
FLIR's acquisition streak continues, announcing an acquisition of Point Grey Research for $253M in cash. Other notable FLIR deals include: FLIR...
Hiring Spree At Aimetis 6 Months After Being Acquired on Sep 28, 2016
Aimetis was acquired in April 2016, and is now expanding almost all of their departments, hiring employees from Axis and other industry...
Camio Natural Language Processing Tested on Sep 27, 2016
The ex-Googler led team from Camio has advanced its video monitoring offering to include natural language processing. Camio ingests video,...
Nest Cam Outdoor Tested - Analytics Strong, Installation Weak 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...

Most Recent Industry Reports

Pelco Favorability Results on Dec 02, 2016
This is the first in a series of studies of manufacturer favorability. 100+ integrators rated and explained their views of each manufacturer. We...
Hikvision CEO Declares 'We Do Not Cut Rates" on Dec 02, 2016
Hikvision has led another press trip to China, and this time Hikvision's CEO is sharing insights into their competitive strategy, including...
Network Security Audit App (March Networks) Examined on Dec 01, 2016
Verifying one's video surveillance devices are locked down against common cybersecurity vulnerabilities is increasing important, as hacks using...
FLIR Acquires Drone Manufacturer For $134M on Dec 01, 2016
FLIR has acquired Prox Dynamics, a Norwegian maker of small military-grade drones, for $134M.  FLIR president Andy Teich provided additional...
Down to $50 IP Cameras From Honeywell on Dec 01, 2016
$100 IP cameras are literally old news. And you do not need to buy from spam email vendors anymore to get $50 ones. [premium_content] You can...
Distributor Offers Local Job Site Delivery on Nov 30, 2016
Local distribution branches are a big differentiator for many integrators, as they facilitate quickly picking up supplies locally without having to...
Dump Axis and Hikvision, Arecont Will Pay You on Nov 30, 2016
Do you want to get rid of your Avigilon, Axis, Bosch, Hanwha Samsung, Hikvision, Pelco or Sony cameras? Now, Arecont will pay you to dump them for...
CODEC Guide 2016 on Nov 30, 2016
CODECs are core to surveillance, with names like H.264, H.265, and MJPEG commonly cited. How do they work? Why should you use them? What issues may...
Free Online NFPA, IBC, and ADA Codes and Standards on Nov 29, 2016
Finding applicable codes for security work can be a costly task, with printed books and pdf downloads costing hundreds or thousands. However, a...
Selecting Wood Drill Bits For Installers on Nov 29, 2016
Running cables through studs is common for roughing in residential and some older commercial installs. To do this, you will need to drill holes in...

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