Buy Arecont: Top Bid $10 Million Cash

By: John Honovich, Published on May 22, 2018

Last year, Arecont had a deal for a purchase price of $170 million (see Failed Arecont China Acquisition).

This year, Arecont has a deal for a purchase price of $10 million cash. But there is just over a month to beat that. Good deal or not?

Inside we examine the purchase agreement for Arecont, the Chapter 11 process and the potential to make a lot of money.

**** ****, ******* *** a **** *** * purchase ***** ** $*** million (********* ******* ***** ***********).

**** ****, ******* *** a **** *** * purchase ***** ** $** million ****. *** ***** is **** **** * month ** **** ****. Good **** ** ***?

****** ** ******* *** purchase ********* *** *******,*** ******* ** ********** *** ********* ** make * *** ** money.

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

Purchase ********* *** ********

******* *** ****** * purchase ********* **** *********.***** ******* ***** ******** ***** ** $10 ******* ****:

** ******** ** *** cash, ** ******** ~$* million ** ***** ********* consideration ** ***** ******* liabilities *** ******* ******* included, **** ******* **** the ********* ****** ********** for ********* *** ***** owed ** *********, *********, etc., ** ***** *****:

**** ** ********** **** Arecont's *********:

$73+ ******* **** **** / ******** **** *********** ****

*** ******** ********* ******** the ******** **** **** that *** ******* **** this ********* *** ****** the ******* **. ***** $73+ ******* ** ***** owed, **** **** *********, that **** / **** holder **** **** ********* get ******* ** *** dollar *** **. *** new ***** *** ******* will *** **** ***** away.

Total **** *** ******* ~$** *******

** ******** ***** ****, for ***, ** ~$** million, ********* ** *** cash ******, ***********, ******* capital *** **** ******* investments ** ********, *****, etc.

Auction ******** *** **** ***

**** ********* ** *** final *** ** ******* to ***** ****, **** Turnspire ****** *** ***** to *****. *** ******* itself ** ******** *** July *, ****.

*******, ** ********* ** *** ******** post, *******'* ****** *** already ********* *** ********* bidders *** **** ** the **** ***** *** of **** *******.

Bear ****

*** **** **** ** that ******* ** ******** and **** ********* ** such * *********** ******** historically ****** *******, ****** dying ** ********** ** get *****. ******, **** members ************** **** * negative ******* ** ******* as *** **** **** just ***** ******* ** was ********* *****:

Bull ****

*** **** **** **:

  • *** **** **** *** strangling ******* ** *** gone.
  • *** *** ********** (*.*., Kaplinsky, *******) *** ****.
  • ******* *** ***** *** products *** ** *** simply * ********.
  • *** ***** ** ****** low. ******* *** ~$** million ******* ** ****.

** ******* **** ******* can ********* **** ** even * ~$** ******* per **** ******** (***** small *** **** ***** surveillance ******** *********), ** would ****** ****** *** amount ******** ** **** a ****** ** ***** to ***** ***** (****** even ****** ***** ************ manufacturers ***** ** ** price ** *****).

****

Comments (37)

Avatar

Luis Carmona

IPVMU Certified | 05/22/18 05:15pm

** ******** ***** **, is ***** ******** ***** the ****** ************ **** would ***** ** ** be **** **** * regular ******, **. ********* that ***** **** ** a **** ************** *** not **** ******* ******?

Avatar

Sean Patton

IPVM | In reply to Luis Carmona | 05/22/18 05:27pm

**** *****'* ****** ****** your ********, *** **** I *** ** **********, when *** **** ***** multisensor ***********/********* *******, *** better ** *****, ******* comes ** ****. ** stopped ******* **** * years ***, *** ***** is ***** ** ****** a **** ***********, ** long ** *** ******* works, *** *** ** lower *** *******.

Undisclosed #2

In reply to Luis Carmona | 05/22/18 06:51pm

**** ***********, *** ****** not. ***** ****-***** ************ implies **** *** ******* facets ** *** ****** are ******-********* (*** *** presumed ******** ** ***** a ******). **** ******* from * ****** ***** an ********* ** ********* SoC (** ****' ****** chips), ***** *** *** (System ** ****) ** essentially * ***** ********, optimized *** ******** *****, but **** **** ** do ***** ******. *** Axis **** **** *** an ******* ** *** you *** *** ******* other ******** ** *** cameras *********.

*** ******* *******, ** is ****** ******** **** have ******** ********* *** deployed ** *** ******* to ******* **** ****** the ******** **** *** already ***** *** **** known.

John Honovich

IPVM | In reply to Luis Carmona | 05/22/18 10:58pm

********* **** ***** **** it * **** ************** and *** **** ******* camera?

****** ****, *** $** million? * ** *** even **** *** *** get * ***** ** SoCal *** $** ******* ;)

** *** ***********, * think **'* * **** question. ** #* ********, the **** ************ ** the **** ****** ********** differentiator. *** ******* / question ** *** **** this ** ***** ** 2018?

** *** *** ****, I ** *** ** expert ** **** *****, so * ***'* ***** an ******* ** ****. On *** *****, **********, Arecont *** *** ****** have ******** *** **** technology ** *** ***+ companies **** ******* *** to, ** *** ******* bid ******, ********* ****** buyers ** *** ***** that **** ** ******* / ******** **** **** a **** *** ******* that ******.

*** ***** * ** curious ** **** ** how **** ** *******'* QA ****** *** * factor ** *** **** architecture ** *** ** / ********** ********* (*.*., is ** *** **** or *** *******)?

Avatar

Luis Carmona

IPVMU Certified | In reply to John Honovich | 05/23/18 08:22am

***, ** ******** *** partially **********. ******* ** seems ****** **** **** up **** * *** and ******** **************, ***** biggest ******* ***** **** be "**** ** *******", and ****'* ** **** can ***** ***** ** back **. *** **** it ***'* ********. *** maybe **** **** **** to *** ****, ***** small *** **** ** carefully *** *************.

**, *** * *** too *** **** **** camera ******** ** ** enticement ** *** *** cameras. :)

Undisclosed Manufacturer #10

In reply to Luis Carmona | 07/04/18 04:40am

*****.
******* ** ******* ** of * **** *******: "Unique *****'* ****** **** you ******"

Undisclosed Integrator #1

05/22/18 06:36pm

** ***** *** ****/* factory ******** ** *** acquisition? **** ***** **** to ** ****** ********, particularly ** **********.

Undisclosed Manufacturer #3

In reply to Undisclosed Integrator #1 | 05/22/18 07:01pm

* ***'* ******* **** own **** ****** - they *** * ****** in * ***** ***** building.

Avatar

Sean Nelson

Nelly Security | In reply to Undisclosed Manufacturer #3 | 05/22/18 08:13pm

** **** ******** **** a ****** ************* ******* here ** *** ***?

John Honovich

IPVM | In reply to Sean Nelson | 05/22/18 11:27pm

******* ********:

** *********** *** ****-**** of ******** ** ********, California. ** ** *** occupy * *********** ********** manufacturing *****. ** *** located ** * ***** A ********** ****** ******** where ** ****** *** floors *** *** ******** of *** ********. *** first ***** ** *************, shipping, ********* *** ***** operations *********. *** ******** contains *** ***********. *** seventh ***** ****** ** office ***** *** *****, marketing, ********/**** *******, *********** and ************** *********.

****: ****-**** ****** ** their ******** ******** (****** and *****-*******, ***.). *** manufactured ** *** ** is *** *** ******* line *** *** ****** Mega-line *******.

Undisclosed Manufacturer #4

05/22/18 07:01pm

***** ******** ******** **** has ** ** ***** 5x's ****/****.

Undisclosed #5

In reply to Undisclosed Manufacturer #4 | 05/22/18 11:41pm

***** **** *** ** true, ** ******* *** huge ****** ** ***** current **** *** ** 2014 ***********.

John Honovich

IPVM | In reply to Undisclosed #5 | 05/22/18 11:46pm

****'* *** ****** ** the ******* ****? **** whole ******* **** *** the ****, ********** ** effectively **** ******, *.*., whatever *** ******* *** is. *** **** **** is *** * **** going *******

*******, ** *** *** value ** ***** ******** customer ****, *'* ** more ******** ***** ****. Cameras *** ********** **** to *******. ****** *** of *******'* ***** ********* use ********** ********** '****' VMSes **** ****** **** with *******'* ***** ****** competitors. **'* ******** **** Arecont ***** **** *** the ****-** ** ********** low ******** ** ***** and ****** ******* ********.

Undisclosed #5

In reply to John Honovich | 05/23/18 12:12am

"****'* *** ****** ** the ******* ****? **** whole ******* **** *** the ****, ********** ** effectively **** ******, *.*., whatever *** ******* *** is. *** **** **** is *** * **** going *******"

#*: ***** *** *** $73M ******** **** **** go?

#*: ****** ******* *** this $*** **** *** 'converted ** ******'.

#*: *** ***** *** debt ****** **** ***** to **** '******' ** they *********** *** **** in ****** *** ***** underwriting ** *** ******** 2014 **** *******?

John Honovich

IPVM | In reply to Undisclosed #5 | 05/23/18 12:22am

#* *******'* **-******** *** other ************ **********. **** they *** **** **** money, *******.

#* **'* *********** ********* to ******. ***** ** Arecont **** * ***** with * ********. **** can't *** *** ********, the **** ***** *** 'house' (*.*., ******* *** company *** *** **********) and **** **** ** for ** **** ** they ***. ******* **** it *** **** *** equity ** *** ***** / *******.

#* *** **** ***** to *** ** **** as **** ***. *** problems *** (*) ******* cannot *** **** *** debt, (*) *** **** anyone ** ******* ** offer ***** *** *** Arecont ** $** ******* cash. ** * ******* war ****** ***, *** bank **** ******* **** as **** ***** ** possible. ***** ***, **'* just $** *******.

*** **** ***** ****** is **** *** **** who ***** **** $** million **** ***** ****** to **** **** *** run ******* ****** *** given **** ** *** come ** ****, *********, they ***** ****** *** as **** (** ** little) ***** ***** *** Arecont ******* ** ******* it *** *** **** few ***** ** *** hope ** ******* ** around (** ***).

Undisclosed #5

In reply to John Honovich | 05/23/18 12:49am

#* *** ****** *** only ******** * *** interested **.

*** **** ****** ** exactly ** * ******** it ***** **.

** ********* ******* ** any ******** ******* **, that *** ******** ** Arecont **** $*** **** beguiled ********* ** **** based ****** ******* ** **** likely ******* *************** ** *** companies ****** *******.

*** ** *** ***** that * ** ***** cavalier ** ** ************, answer **** ********: *** else ***** ******* ****** that **** ** ** existing, **+ ** *** entity** *** ***** ******** ***********?

*** *** ***** ***** that ****** ** $*** to *** ******* ******** in **** **** ********** in *** ********.... *** you *** ** *****. but **** **** ***** that ******** *** ******** told ****, **** ******** - *** ******** ***** $73M.

******* **** *** **** invited ** ***** ** that **** *******/******** *******... what ***** **** **** your ********* ** *** future ** ******* ****?

*** *** *** **** to **** * ***** a *****..... ** * will. * ***** *** founders **** **** ***** knowing ***** *** ********* they ********* ** ********* was *******.... ** **** themselves *** *** ***** own ***** ** ****** which *** ******** ** tank ** ***** **** based ** *** ********* they ********** ****.

John Honovich

IPVM | In reply to Undisclosed #5 | 05/23/18 12:55am

******* ** ** ***** what ******* ********* *** the **** **** *******.

************, ******, ***** *** 2 ******** ******: *** Arecont ******* *** ******* information ** *** ******* simply ***** ********** ********? Only *** ****** ***** be ******* *** ********* legal ******.

*** *******, ** ******* said, "** **** **** happy *********", **** ** a ******* * ********* correct ********* ***** ****** in **** ******* ***** produce '****' ***** ********* as ********* ******. ** it **********? **** *** that's *** ** *******.

**'* *** ****'* ***, especially ** **** *****. This ** *** *** Labs *** *** *' pop *********. **** ***** are **** ***, *** people ********* **** *** going ** ** **** educated *** ***********. ** they ****** ** ***** due ********* (*.*., *** not ******* *** ******* quality ******, ***** ******, the ********* ** *** Chinese, ***.), **** ** on *** ****.

Undisclosed #5

In reply to John Honovich | 05/23/18 12:57am

**, * **** ** admit **** * ***** with ****. :)

John Honovich

IPVM | In reply to John Honovich | 05/23/18 11:30am

** ****** ** *** 2014 ****, ** *** technically * ******** **************** as ********* ** *** bankruptcy *******:

**** **** ** ******* is ************* ********* ****** ******* ********:

*** ******** ** ******* viewed ** * ******** light, ***** ********* ***’* generally ******* **** *** added **** ***** ***** sponsors ******* *** ******** and ****** ***** ****** stakes. ********, *** ********** debt ** ******* ** weigh **** ********* *********, making **** **** *********** to ************* ****** ********** and, ***********, ** **********.

Undisclosed Integrator #1

05/22/18 10:52pm

Undisclosed #6

05/23/18 08:41am

***** $**+ ******* ** still ****, **** **** agreement, **** **** / loan ****** **** **** literally *** ******* ** the ****** *** **.

*** **** ******* *** dollar ** *** ***** they’ll ***?

**** **** ****** ****** instead?

;)

John Honovich

IPVM | In reply to Undisclosed #6 | 05/23/18 10:58am

**** ******:****, ******** *** *******: Pixels *** **************** ********** ******** *** Own ****

Undisclosed Manufacturer #7

05/23/18 03:16pm

** **\** ****** *** solved (*** **** ********* to ** **** ************* in ** ****** ******** to **** ******?) **** is ** ********** *********** to ********** *******. **** in *** *** ** quite **** ** *** industry *** **** **** many ******* *** ***-**** connections. *** ***** **** a $****+ ********** ** rebuild, ***** **** *** talent ** *****\**, ********* and ******* **********, *** Arecont ***** ****** ** a $**** ******** ****** 5 *****, ********** ** Trump (** *******) ** reelected: *******, *** ******* Act, ***. **** ** probably *** ******* ******** that ****** *** ************ products. *** *** *******'* and ****** *******'* ** the ***** ****** ** looking **** ** ****. I'll ***** ** ***** ticket ******** *** ***** I'll ****** ** **.

John Honovich

IPVM | In reply to Undisclosed Manufacturer #7 | 05/23/18 03:34pm

****: #* ** *** from ******* :)

***** *** ***** **** back ********? **** ******* return ** *******? ****'* funny, ****** * ***** see **** ***** ** it.

Avatar

Jon Dillabaugh

Pro Focus LLC | 05/23/18 03:24pm

*** *** **** *** the ******* ** ************? Who ** ******* *** day ** *** ***?

John Honovich

IPVM | In reply to Jon Dillabaugh | 05/23/18 03:32pm

**** ********** ******* *** ** day *** *** ******** to ******* *** ******** '********' / **** ******.

Avatar

Jon Dillabaugh

Pro Focus LLC | In reply to John Honovich | 05/23/18 03:34pm

** *** **** **** answer **? ** ***** still * *****? **** he ****** ** *** bank, *****, *****?

John Honovich

IPVM | In reply to Jon Dillabaugh | 05/23/18 03:40pm

*** *****, *** ** external ***** ************* *******,**** **** ******:

********: ***** *****, *** Armory ********* ********

Avatar

Jon Dillabaugh

Pro Focus LLC | In reply to John Honovich | 05/23/18 03:44pm

** *** ******** ***** have * *** ** the *** ** ***? "Subject ** *** *********** of" ****** **** **** still **** *** *****.

****: ****, ** ****** like ***** ** * receiver, ******* ** *** website.

John Honovich

IPVM | In reply to Jon Dillabaugh | 05/23/18 03:46pm

* ***'* **** **** that ****** ***** *** I ***** **'* **** legalese **** ******** ****, since *** ********** ***** is *** ** ****** of ********* ** *******, the *******, ***.

John Honovich

IPVM | In reply to John Honovich | 05/23/18 03:59pm

**** ******* ***** **** light, *** ******** *** the ******* *******, *** the ********* ******* (*** 'real' *******), ** *** CRO ******* ** *** holding *******:

*** ******** **** *** holding ******* (***** * am *** **** **** other ****** ** ****) but *** ********* ******* (the '****' *******) ** what ** ** *** 11 *** ** ***** auctioned *** ** *** bank.

Avatar

Scott Napier

05/24/18 11:49am

** **** * ** of *** **** **'* and **'* ********* ****** the ***********, *** **** work ***** ****. *** the **** ** **************, I **** **** ****** to **** ******.

James O'Donnell

05/25/18 10:18am

** *** *** ****** an **-***** ********, ***** needs ** ** ******** product ******* ** *** product ***** *** *********** is ********* *** **** are ****** ** ******* new ******* **** **** compete *********** ** *** industry. *** **** ***** I *** **** **** going ** **** **** are "**** ** *******". If **** *** ******** then **** ***** ******* some ****** ***** *** the ***** ***** ** a **** *** *** buyer. ** **** *** maddeningly ********* ******* **** them. *** *** *** cameras *** ***** *******. The ****** ******** *******, even **** *** *** of *** *** **** a **% ** ******* failure ****. ** ******** to **** *** ******* and *** ******* ***** aren't **** ********** ***. There *** **** ****** dedicated ****** ** *******, we **** *** ******* survives *** ******** **** new *********** ***** *******.

*** *'*******

********* ********-*******, **

Undisclosed End User #8

05/25/18 11:40am

* ***** ** ***** be * ***** *** for * ******* **** is * ********* ** the ******** ******** **** does *** **** * panoramic **** ** *******. Should * *** ** Bosch ** **** * companies ***** *** ********* in **** ***** *** sub-par ******** ** ******, should * *** ** Pelco. ****** ** ***** one-time ****** ** *** field ***** **** *** overhead ** ******* *** Arecont ****. ******** ***** I **** **** ******* is ****** ** ****** beholden ** ** ********** foreign ******** ***** **** only ***** *** *********** technology *** ******** ****.

***’* *** ****** ******* being *** ** *** few *** ************ ** this ***** *** ****** in ** * *** of ********** **********, ** noted ***** ** *****. This ***** ** *********** subject ** * ******* investor **** ** ******** the *******. *** ***** security ************ ** * foreign ******** **** *** integrity ** *** ******* would **** **** ******** the ************ ** ****** firmware *******, ** *** can't ***** ******* ***** are ******** ** ****** off ****** ******* **** the **** ****** ** action ***** ** ** remove ***** *******. ******* during **** **** ** shrinking ********** *******, ** could ** ***** ************* for **** **** ***** makes *** **** **** tempting ** * *** actor.

John Honovich

IPVM | In reply to Undisclosed End User #8 | 05/25/18 11:43am

* ***** *** *** a ******* **** ** a ********* ** *** security ******** **** **** not **** * ********* line ** *******. ****** I *** ** ***** or **** * ********* whose *** ********* ** that ***** *** ***-*** compared ** ******, ****** I *** ** *****.

****'* * **** *****. Neither ***** *** **** has *****-*******. *** *******. Problem ******? :)

** **** ***** *****, I ***** *** *** value.

Undisclosed Integrator #9

05/29/18 03:34pm

* ***** ***** **** to *** * ********** reason *** **, ** any ***** **********, ** buy **** ******* ** the ******. ********** ** career *'** ***** ****** after ****** ** ******* to *** *** ******* issues *** **** ***** have. *'** **** ***** to ****** ******* **** these *******.

**** *** **** ******** do ** ******** ** to **** **** ******* shot?

*'* ** * **** to ***** ** ********.

Undisclosed #6

05/29/18 07:00pm

***********???

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