$18.7M PSIM Acquisition Examined (IDV / Everbridge)

By: Brian Karas, Published on Feb 06, 2017

This may be the biggest deal for a PSIM developer ever. In a segment that has disappointed for more than a decade, a recent IPOed company has bought a PSIM provider.

IDV Solutions, the PSIM behind Microsoft's Domain Awareness System, has been acquired by Everbridge, a company specializing in notifications/messaging for critical event management. Everbridge paid $18.7M for IDV solutions, with the goal of using IDV's platform to further their strategy of building a critical event management system.

Everbridge CMO Joel Rosen [link no longer available] offered insight about Everbridge, and how they are targeting the security industry with their platform.

**** *** ** *** biggest **** *** * PSIM ********* ****. ** a ******* **** *** disappointed *** **** **** a ******, * ****** IPOed ******* *** ****** a **** ********.

*** *********, *** **** ****** *********'* ****** Awareness ******, *** **** ******** by **********, * ******* ************ in *************/********* *** ******** event **********. ********** **** $18.7M *** *** *********, with *** **** ** using ***'* ******** ** further ***** ******** ** building * ******** ***** management ******.

********** *** **** ***** [link ** ****** *********] ******* insight ***** **********, *** how **** *** ********* the ******** ******** **** their ********.

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

Everbridge ********

********** ** * ******** traded ******* (****, *** ** ********* 2016), **** * ****** cap ** ~$**** *** 2016 ******* ** ~$*** million.

**********'* **** ******* *** **** a ************ ********, ********* used ** **** ***** corporations, *********, ********, *** similar *********, ** ****** notifications ** ***** *** dispersed ****** ** *********. The ******** *** **** notifications *** ******** *******, such ** *****, ***, or ***** *****, *** also ******** *** ******* and/or ***** ** ** ways ******** ** *** recipient. ** ** *******, a ************ ** * possible ********* ******** ***** tell *** ********* ** one ******** ** **** put, ***** ******* ********* in ******* ******** ** evacuate ** ** ******* if ********.

*** ********* ********* ***** gives ** ******** ** the ******* ********** ******** to *****:

*** ******* ** ********* this ******** ** ** beyond ************ ********** ** also ******* ********* ** activities **** *** **** to ******** ***** ** an ****, *** * visualization ** ***** * company's ********* *** ******** to ******* *****. *** goal ***** ** ** beyond ******** ******** ** more ** ** ******** prediction ********, ** ****** organizations ** ***** *** notify ********* ****** ** actual ******** ******.

IDV ******* ***

*** *********** ** ******* the ******** ** ******, such ** ********* ** equipment, ***** **** ******* or ***** **** ******, such ** ******** ** storm *******.

***'* ******* *********** **********'* alert ************* ** ******** users ** *** *** incidents ******* ** *** alerts ***** ****. *** two ********* *** ******* worked ******** ** * number ** ********, ****** the *********** * ******* fit, ********* ** **********'* CMO.

** ******* ** ***'* interface, *** * **** video, *** ** **** below:

Acquisition *******

********** **** $**.** *** IDV, ***** *** ********** raised ~$**, *** *** deal ******** * ********* for ******* $*.** ** be **** *** ***** on **** *** *********** factors *** *** *******. This ***** ** ***** average *** * **** acquisition (****/***** $***, ******/****** ******* ** ~$***, ***/******** ******* ** ** low *****), *** ** *** additional $*.** ** ******** paid *** ***** **** it *** **** ********* PSIM *********** ***.

****** **** ***** **** products, *** *** **** as * **** *******, with ********* ****** ****** subscriptions, ********* ** ****** of $***,***, *** *** product. **** ****** *** a ******** ****** ** the *********, **** *** company ****** **** ******-********** future ******* ***********.

***'* ******* *** *** disclosed, *** *** ** disclosed in **********'* ****** ********* filings. ** ******** *** annual ******* ** ** the ** *** $* - $* ******* *****, as Everbridge's ********** **** ********* (5:1 ***** / *****) compared ** *** ******** industry (******* *:* ***** / *****) ***** ***** them ** ****** * ****** multiple.

*** **** ******** ** operate ****** *************, *** will *** ** ******* as "** ********** *******" to **** *** *********** clear, ******* ********** *** brand *********** *** *** achieved ** ***** ******, according ** **********'* ***.

Market ******

**** *********** **** ****** have ****** ******, ******** or ********, ** ********* PSIM ********* **** ****** or ***. ******** *** provided **** **** *********, their ****** ****** *** been **** ***** **** assessment *** *********** ** multiple **** *******, **** the *********** ****'* **** are **** ***** ****** aggregation *** ***** **********. This ****** **** **** a **** *********** ******* and ********* *********** *** Everbridge.

**** **** *** ********/******* ***********, **** *********** *** based ** ***-******** ************* with ************* ******* *********. Other **** ********* ******* for ** *********** ***** may ** **** ** try * ******* ******** of **-******* **** ****-******** partners.

Comments (2)

Paul Shah

02/06/17 10:56pm

What would be the average price/sales for a SaaS company in the security industry?

 

John Honovich

IPVM | In reply to Paul Shah | 02/07/17 09:06am

What would be the average price/sales for a SaaS company in the security industry?

There are probably not enough transactions for security industry 'SaaS' companies since SaaS is fairly new / limited in physical security.

However, alarm companies are similar at least from a financial structure to SaaS. They get subscriptions and even better than many SaaS companies they have long term contracts for those subscriptions.

Alarm companies are typically valued in multiples of recurring monthly revenue (RMR) and the range commonly cited is 36 to 48x of RMR. Converting months to years, that means an average prices/sales ratio of 3 or 4 to 1, which is vastly higher than integrators, e.g. (How To Sell Your Security Integrator).

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