DVTel Acquires ioimage

Author: John Honovich, Published on Jan 11, 2010

IP Video Surveillance provider DVTel has acquired video analytics specialtist ioimage for an estimated $80 M USD in a stock transaction (based on future benchmarks). This is being reported by multiple Israeli newspapers and confirmed by sources close to the deal. These reports claim that this is a 400% return on $20 million invested in ioimage. Also see the official DVTel announcement (though it adds no material details).

In terms of the transaction, as a stock only deal between two private companies, it raises questions about the meaning of the valuation. The valuation is important for the greater video surveillance market as this deal will be used as a benchmark for video analytics as a business and technology.

Background of the Companies and Market

ioimage is widely considered to be one of the leading video analytic providers with the most publicly announced video analytics deployments and a strong focus on the security market. DVTel is one of the larger IP Video surveillance providers focused on providing integrated solutions of VMS, cameras, access control, etc.

The video analytics market is hotly debated with increasing industry dissatisfaction over the past few years.  We have tracked this in our video analytic market survey and analyzed this in our intelligent video state of the market presentation.

What Does this Deal Say About the Video Analytics Market? 

We have reservations about assessing the impact of this deal - primarily from questions around the valuation. If it was $80M USD cash or stock from a large public company, this would clearly be a success and a bullish sign for the market. However, as DVTel is itself a private company (and a relatively small one at that), we think that the $80 M valuation needs to be carefully considered as a metric for assessing the market.

Fit Between the Companies

The fit between DvTel and ioimage makes sense. They both target the high end security market who generally have large scale deployments with critical security needs. This also fits in with DvTel's long term strategy of providing integrated solutions - all from DVTel.

This does raises questions about 3rd party support. ioimage is supported by a number of 3rd party VMSes. DVTel supports a number of video analytic systems. While they may continue to do so, their commitment to these existing partnerships is likely to diminish.

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

Future for the Video Analytics Market

We do not believe this changes the long term outlook for the video analytics market. Indeed, if one of the biggest video analytics companies is being bought out by a relatively small company, what does this say for the many smaller video analytics companies? Or for the intelligent video companies (such as 3VR, Cernium, ObjectVideo) with $30 M or greater investment? What is their exit strategy?

This deal further shows the broad trend of bundling video analytics with cameras and VMS systems. However, we think this is more of a reflection of general market failure for video analytics than a strong inherent strategy (premium members may read our analysis of the problems with bundling and failure to meet investor expectations).

We do believe this signals a modest beginning of the end for the video analytics "1.0" market that arose in the early 2000s.

What Do You Think?

Good news? Bad news? Agree? Disagree?

7 reports cite this report:

DVTel ioimage HD Analytic Camera Tested on Jan 29, 2015
Four years after acquiring ioimage, DVTel has released new HD analytic cameras, with the promise of higher probability of detection and lower false...
New HD Video Analytic Cameras (ioimage / DVTel) on Sep 17, 2014
DVTel is releasing their first HD video analytic cameras, nearly 5 years after acquiring ioimage. With Avigilon EOL'ing VideoIQ products, this is...
Investments & Acquisitions Directory 2011 on Dec 26, 2010
This directory provides a single source of information on funding and acquisitions in the video surveillance market. It is part of our Video...
What do Manufacturers Think About the Future of Video Analytics? on Apr 05, 2010
A recent STE print supplement carried an interview with video surveillance manufacturers. Below is a summary of manufacturers's answer to "How will...
What does the DVTel-ioimage deal say about the video analytics market? on Jan 13, 2010
IP Video Market poll respondents are heavily divided about the meaning of the DVTel-ioimage deal to the video analytics market. Of 129 respondents,...
Is Bundling Video Analytics a Good Strategy? on Jan 11, 2010
While increasingly adopted, we believe bundling video analytics with cameras and recorders is a reflection of failing initial strategies rather...
The Importance of Simplicity for Video Analytics: Exploring ioimage on Jun 30, 2008
Maximizing simplicity will be a critical factor in IP Video success. In the early days, having a feature was enough. Now, with so many providers...

Related Reports

ReconaSense - The AI / Access Control / Analytics / IoT / Video Company Profile on Jun 12, 2018
One company's ISC West booth stood out for displaying a light-up tower of buzzwords. The company, ReconaSense, pledged to be 'making sense of it...
Bosch IVA Video Analytics And Motion+ VMD Tested on Jun 06, 2018
Bosch's video analytics now ship on nearly every model, from indoor domes to high-end 5MP starlight cameras.  In this test, we evaluate Bosch's...
Hanwha Wisenet X Analytics and VMD Test on May 24, 2018
Continuing our updated testing of camera analytics, we tested Hanwha's Wisenet X analytics for over two weeks in multiple scenes, indoors and out,...
Buy Arecont: Top Bid $10 Million Cash 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...
The Hikvision Smart Classroom Behavior Management System on May 22, 2018
Hikvision's rapidly growing offering of analytics, which we most recently examined with Hikvision's ethnic minority analytics, is now going into...
Dahua Intrusion Analytics And VMD Tested (Poorly) on May 21, 2018
Dahua ships basic analytics on practically all their cameras, ranging from low cost to high end. To see how these analytics work in real world...
Stealth / UCIT - Remote Video Monitoring Provider Profile on May 18, 2018
Can 2 remote video monitoring companies, Stealth Monitoring from the US and UCIT from Canada combine to impact the market and compete in a changing...
Canon Acquires Briefcam, Now Owns Briefcam, Milestone and Axis on May 09, 2018
Canon already owns two of the biggest names in video surveillance, Axis (acquired in 2015) and Milestone (acquired in 2014). Now, Canon...
Nortek Acquires IntelliVision on May 08, 2018
One of the largest intrusion manufacturers, Nortek, has acquired the self-proclaimed 'Leader in AI-Based Video Analytics Software',...
Hikvision's Minority Analytics on May 08, 2018
Hikvision has developed and is deploying minority analytics inside China, automatically identifying and categorizing individuals as ethnic...

Most Recent Industry Reports

IFSEC Show Report Day 2 Report on Jun 20, 2018
IPVM is live from London reporting on the IFSEC show. The Chinese have taken over the UK, centered on Hikvision, flanked by Dahua, Huawei and a...
Mobotix Releases 'Move' Into 21st Century on Jun 20, 2018
For years, Mobotix stood resolutely against, well, every other manufacturer, selling it as a virtue: MOBOTIX equipment is designed with no...
Cybersecurity Startup VDOO Disclosing 10 Manufacturer Vulnerabilities Starting With Axis And Foscam on Jun 20, 2018
Cybersecurity startup VDOO has uncovered significant vulnerabilities in Axis cameras along with many others not yet disclosed. In this report, we...
July 2018 IP Networking Course on Jun 19, 2018
The last chance to save $50 on registration is this Thursday, June 21st. Register now and save. This is the only networking course designed...
Axis Guardian - Cloud VMS And Alarm Monitoring - Released on Jun 19, 2018
Axis has struggled to deliver a cloud-based managed service video platform. Video service providers have utilized AVHS for over a decade, and have...
IPVM Vulnerability Scanner Released on Jun 18, 2018
IPVM is proud to announce video surveillance's first and only cybersecurity vulnerability scanner. This tool allows quickly and simply...
Hikvision Corrects False Cybersecurity Announcement on Jun 18, 2018
Hikvision has corrected a false cybersecurity announcement that claimed a British government-sponsored program endorsed the cybersecurity of...
The Dumb Ones: PSA's Bozeman On Cybersecurity on Jun 15, 2018
The smart ones are the hundred people who flew to Denver and spent $500+ on a 1.5-day conference featuring Dahua as a 'cyber responsible partner',...
Amazon Ring Launches $10 Monthly Professional Alarm Monitoring on Jun 15, 2018
Amazon's Ring has announced an alarm system with 24/7 professional alarm monitoring for $10 per month, a fraction of the $30+ per month traditional...
Axis Releases First New Access Controller In 5 Years (A1601) on Jun 15, 2018
It has been 5 years since Axis 2013 entry in the physical access control market, with the A1001 (IPVM test). Now, Axis has released its second...

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