Brivo Bought Out by Drako for $50 Million

By: John Honovich, Published on Jun 11, 2015

One man is betting $50 million on hosted access control.

Dean Drako, who has been investing millions into building a cloud video startup, Eagle Eye, is now doubling down his commitment to the physical security industry.

In this note, we share details from an interview with Drako and Brivo's CEO about how Drako bought Brivo and what this means for the future of both Brivo and Eagle Eye.

*** *** ** ******* $50 ******* ** ****** access *******.

**** *****, *** *** **** investing ******** **** ******** a***** ***** *******, ***** Eye, ** *** ******** down *** ********** ** the ******** ******** ********.

** **** ****, ** share ******* **** ** interview **** ***** *** Brivo's *** ***** *** Drako bought Brivo *** **** **** means *** *** ****** of **** ***** *** Eagle ***.

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

Key ********* *******

**** ***** ** ****** $50 ******* *** ***% ownership ** ***** **** *** previous *****, $* ******* investment **** *** ********** *****. ***** **** ** won ** ******* *** Brivo ******* * ***** bidders. ** *** ********* / *********** ***** *** ** for **** *** **** time.

***** *****'* ******* *** not *********, ** ******** 2014 ******* ** ** in *** $** ** $20 ******* *****, ***** on *** ****** ** doors / ******** **** service *** ***** ******* structure.

***** ******* ********* ******* reported ** ***** / Drako:

  • **** ** **% *** past * *****, ******** Brivo *** ******* ******* since **** / ****
  • ***,*** ***** / ******** serviced
  • '************ ******' *******
  • ********** ** ****
  • *.*-*% ****** *****, ***** Drako ********* ** *** lowest ** *** **** seen ** *** ************ business

***** ******* ***** *********** details *******:

  • ~*** ********* ** *****
  • ~*** ******* ** *****
  • ******* ** * ***** per **** ***** *****
  • ******* ** * ***** per ******* ***** *****

**** ** *****'* ***** explanation ** *** ******:

Comparable *****

****** ******* ************ *** relatively ********.********'* **** *********** ** RedCloud *** $** ********* *** *******. ***** based ** ***** ** sales ***** *** *************, Drako *** * *** better **** *** ***** than ******** *** *** RedCloud. ** *** ***** hand, ******** *** **** RedCloud **** ***** ******* sales *** ********* *******, which *** ********** ******* much ****** **** **** Drako *** **.

Brivo *** ***** ***

*** ******** ***** ** the **** ** **** Brivo *** ***** *** are ******** ****** **** *** company, ****** ***** **** be **** *********** ** the *** ********.

***** **** *** ****** he ** *** ******* the *** ** **** a ****** ***** ****** very **** / ******** *********, which ***** ****** ***** individual ******.

***** **** ***** ********** how *** ******** ******* either *******'* ****** ******* are ***** ***** *********, but ***** ***** ** it **** ****** *** Eagle *** ** ** alternative ** ********** ***** *** *************. **** *** **** Eagle *** ******* **** cross-sell ***** ** *** to ** **********, ***** the ******** ********** ** access ************ ******** ** video ************.

Brivo's ******* ****** ***********

****** ****** *** ******** a ******** *****, ******* Brivo's  ******* *** *** past ** *****. ******, there *** **** *** ****** access ******* **** ********* though, **** *** *********** access ******* ******* *** manage **** (*** ****'* ****** *** ******* ****** Control **********).

* *** ********* ** that ********** ****** ******* is ** ********** **** to ****** (*** ******** ** ********** ****** Control ******* **** **%+ ** ******* lasting **** **** **+ years). **** ***** ** hard *** *** *** entrant (*** ** ** years *** ***** ** still, ********** ********, * new *******).

*********** **** ** *****'* *********** panels *** **** ********* ************, ****** ** ****** for ***** ** **** over ******** ******* *** more ****** ** *** new ******.

****** ** *****'* ************ business ****, ***** ** all ***** ***********, *********** *********** ** their ***********, ********* *** **** for $*,***+ ********** *** a $*,***+ ****** *** 6 ***** **** $*,***+ annual ** ********.

***** ***** *** ********* benefits *** ***** **********, Brivo's **** ****** ***** shows **** *** ********** challenges ***** **** *** company ****, ********** ** owner.

Comments (9)

Avatar

Jonathan Lawry

Trecerdo, LLC | 06/11/15 11:51am

I would be curious to see what now becomes of Brivo Labs. This is their unit that does "cool" stuff like Google Glass integration, Apple's iBeacon for access, and overall social media integration.

This has always struck me as more of an expensive recruitment and PR effort, to make Brivo an attractive place to work for 20-something DC-area techies who didn't move to Silicon Valley, than a serious investment in salable product. Has any Brivo Labs creation seen actual deployment?

I would think that a Bell Labs/Skunkworks group would be a bit of a money pit for a small company, and I would not be surpised if Drako now shuts it down or scales it back.

John Szczygiel

06/11/15 02:09pm

[Mod note: Poster is COO of Brivo]

Hi John,

Here is the answer to your question...Brivo Labs will continue to exist from a thought leadership perspective. Productization of some of the innovations developed in Brivo Labs are already being incorporated into Brivo Inc.

John Honovich

IPVM | In reply to John Szczygiel | 06/12/15 07:54pm

John S,

Can you elaborate on which Brivo Lab projects have been incorporated into Brivo? Is that Randivoo or? Is the IDBox a concept or shipping product or?

Undisclosed Integrator #1

06/12/15 09:52am

"Access control acquisitions are relatively uncommon."

Why is that? It seems like a natural add-on to a manufacturer's portfolio. Is there just not enough margin to make it attractive? Are all of the companies that are acquisition worthy already scooped up? I don't do enough card access to be well-informed on this.

John Honovich

IPVM | In reply to Undisclosed Integrator #1 | 06/12/15 10:39am

One basic factor is that there are simply less access control manufacturers. Think about all the companies offering recorders / VMS software. Contrast that to those who provide access control controllers / software. Far less of the latter.

Certainly that is related to the fact that there is a lot more video / (security) cameras than (electronic) access / doors (e.g., Which Market Is Bigger? Access Control Or Video Surveillance?).

Avatar

Jonathan Lawry

Trecerdo, LLC | In reply to Undisclosed Integrator #1 | 06/12/15 11:14am

I will add on to John's comments by saying that a considerable number of access control manuafacturers are closely held, private companies. I would love to say a majority are, but I don't have hard data to support this; just anecodotal data and my own experiences in access companies' changes of ownership.

This being the case, I believe access control acquisitions are under-reported. Unless there is a clear publicity benefit to either the buyer or the seller, which there often is not, few shout the news from the rooftops.

Undisclosed Manufacturer #2

06/12/15 06:58pm

I have to ask: What about Brivo labs makes it a thought leader? Outside of Brivo employees, I have never heard anybody refer to Brivo Labs as a "thought leader".

If anybody not affiliated with Brivo has a solid argument to the contrary I'm all ears.

John Honovich

IPVM | In reply to Undisclosed Manufacturer #2 | 06/12/15 07:56pm

Thought leader stuff is what guys like Steve Van Till dream of being or at least being thought of.

Thought leader or not, the real question is what this actually delivers in reality - actual product that makes Brivo more attractive and valuable to customers. I do not know enough about what Brivo labs does but I'd be curious to hear how this is differentiating them from other access control companies on real features.

Undisclosed Manufacturer #2

In reply to John Honovich | 06/12/15 08:34pm

I'd be curious to hear how this is differentiating them from other access control cocmpanies on real features

That makes 2 of us.

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

Nortek Blue Pass Mobile Access Reader Tested on Jul 11, 2019
Nortek claims BluePass mobile readers are a 'more secure and easy to use approach to access', but our testing uncovered security problems and...
Poor OSDP Usage Statistics 2019 on Jul 09, 2019
OSDP certainly offers advantages over decades-old Wiegand (see our OSDP Access Control Guide) but new IPVM statistics show that usage of OSDP, even...
Directory of 59 Video Surveillance Startups on Jun 25, 2019
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known. 2019...
HID Mobile Tested on Jun 21, 2019
HID Global is one of the largest access brands, but their mobile access has had challenges. Indeed, the company has already restructured their...
Genetec Synergis Cloud Link - Complex, Costly and Confusing on Jun 18, 2019
Genetec's Synergis Cloud Link is complex, costly and confusing compared to competitor access control architectures. Inside this note, we examine...
Biometrics Usage Statistics 2019 on Jun 17, 2019
While face and fingerprint recognition are used regularly for smartphones, it is not as common in physical security. In this note, we examine...
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),...
Farpointe Data Conekt Mobile Access Reader Tested on Jun 13, 2019
California based Farpointe Data has been a significant OEM supplier of conventional access readers for years to companies including DMP, RS2, DSX,...
Dumber Techs, Bad Box Movers, Says Australian Distributor on Jun 10, 2019
Techs today are "dumber" than they used to be, despite better education and training and that makes a typical day "frustrating" for one...
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...

Most Recent Industry Reports

HD Analog vs IP Guide on Jul 16, 2019
For years, HD resolution and single cable signal/power were IP camera advantages, with analog cameras limited to much lower resolution and...
How To Troubleshoot Wiegand Reader Problems - Inverted Wiring on Jul 16, 2019
Wiegand is the dominant method of connecting access readers, but problems can arise for installers. In fact, one of the most difficult reader...
ZeroEyes Gun Detection Startup on Jul 16, 2019
A gun detection video analytics startup, ZeroEyes, is being led by a group of 6 former Navy SEALs, aiming to "save lives" by using AI to assist...
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...
Hikvision Global News Reports Directory on Jul 15, 2019
Hikvision has received the most global news reporting of any video surveillance company, ever, ranging from the WSJ, the Financial Times, Reuters,...
Vivotek Trend Micro Cyber Security Camera App Tested on Jul 15, 2019
Vivotek and Trend Micro are claiming five million blocked attacks on IP cameras, with their jointly developed app for Vivotek cameras. This new...
Beware African 50,000 IP Camera Contract Scam on Jul 12, 2019
A “Nigerian Prince” scam for the video surveillance market is going around. You, or at least we, could be lucky enough to be the single bidder for...
Axis ARTPEC-7 P1375-E Camera Tested on Jul 12, 2019
Axis claims the new P1375-E box camera with ARTPEC-7 chip delivers "clear, sharp images in any lighting condition." But how well does it do? We...
Last Chance - Camera Course Summer 2019 on Jul 11, 2019
Last day to register is Thursday, July 11, 2019. This is the only independent surveillance camera course, based on in-depth product and technology...
Nortek Blue Pass Mobile Access Reader Tested on Jul 11, 2019
Nortek claims BluePass mobile readers are a 'more secure and easy to use approach to access', but our testing uncovered security problems 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