Exacq 3 Co-Founders Exit

By: John Honovich, Published on Jan 10, 2017

Exacq co-founders David Underwood [link no longer available] and Daniel Rittman [link no longer available] have exited the company.

UPDATE: And a 3rd co-founder is now also leaving.

In this note, we look at changes across Exacq's management team, Exacq's progress over the past few years since the acquisition and their future outlook.

Management **** *******

*** * ******* ** the***** ********** **** ****** currently**** *******:

  • **** ********* [**** ** longer *********], ****** ** General *******, *** ****** Exacq.
  • *** ******* [**** ** longer *********], ****** ** VP ***********, *** ****** Exacq.
  • ** ******* [**** ** longer *********], ****** ** Director ** ******** ***********, has ******* *****.
  • *** ******* [**** ** longer *********], ****** ** VP ** ***** *** Marketing, *** ******* ** run '******* *********' ****** Tyco's ******** ******** (*.*., Software *****, *******, **, etc.) [******: ******* ** also ******* *** *******]

*** ** **** *** extensive ***** ************ ********** team, ******* ******** **** before *****, ** ********.

Replacements *******

***** / **** / JCI **** *** **** any ****** ************ *** have **** ******* ** our *********. ** ****, there ** ** ******* about *** ** *** in ******.

3 **** ******* ****

*****'* ********** *** * 3 **** ****-*** **** the**** ***********, ***** ***** **** ended ** *** **** few ******, ********* ** sources. ** **** ***, the ***** *** *** surprising.

Good ******** **** * *****

**** *** *********** ********, we******:

**** **** **** ****** ruin *****. **** *** Tyco, ***** ***. *******, what ******* ******* ******* on *** ***** ** integrated *** ******* *** Exacq ********** **** **** remain **** ****.

*******, **** *** ********* not ****** *****.

***** *** ********* ** regularly ******* *** ******** and *** ******** ****** the *** ******** **** 'enterprise' *****. ****, **** have ******** ******** *** hardware *****, ************ ** *** ****** cost ******* ****, *** new * ******. ****, ******* ********** concerns ***** **** ********* with ***********, ** **** not ***** *** ******* cases ***** **** ********.

*********************

*******, **** ****, ***** has ****** **** ****-****. For *******, *** ******** of************ **** ***** **** properties, *** ************ ******* ** **** / ***** '*********'.

*** *** ************ ***** ******** ***, Exacq ****** ********* **** be **** ****** ********** with **** / ***.

**** / ***'* ********* to ******** *********** *** transition ** *** * good ****.

Vote - ****

Comments (21)

Undisclosed Manufacturer #1

01/10/17 03:26pm

I also heard that Tom Buckley has also put his notice in. No word on when his last day would be. 

He is the last of Exacq marketing to leave. All the others have left in the past several months. 

John Honovich

IPVM | In reply to Undisclosed Manufacturer #1 | 01/10/17 08:35pm

I also heard that Tom Buckley has also put his notice in.

I forwarded this comment to Tyco / JCI management as soon as it was posted. No response.

It appears to be true, though it is not clear why Buckley is leaving.

Having 3 of the founders leave within a month will be challenging for Exacq.

Undisclosed Manufacturer #8

In reply to John Honovich | 01/15/17 05:12pm

 Never underestimate the power of fun, particularly when you have alternatives.

Undisclosed Manufacturer #8

In reply to John Honovich | 01/28/17 12:32am

 John, I know VIDEO is fun and all but it's not that much fun and when you've got all the money you can spend for the rest of your life, it might be a good idea to concentrate on the fun part. 

Avatar

Buddy Mason

01/10/17 03:27pm

Sure going to miss these guys, they were a class act from start to finish!

Undisclosed #2

01/10/17 03:48pm

Not surprising news, but it is making me take another look at exacq for the long term for software updates and hardware warranties, and current pricing.  I've been using exacq for the past 7 years and have been very happy with their software.  Hardware hasn't been as robust as if I had built it myself, but buying assembled saved me a lot of time.  I need to add another NVR and keeping it simple means adding another Z-Series.

I recently reached out to inside sales at exacq to inquire about their Z-Series hardware and OS - why they were still shipping with Windows 7 and Gen 4 processors and if there was a planned date for Windows 10 and Gen 6 processors. 

I was told July 2017 they will start shipping with Windows 10 embedded.  (apparently they are still finishing out their support for embedded Win7)

I actually like Windows 7 much more than 10, but current pricing doesn't seem to reflect their use of older hardware and OS.  Anyone else think Tyco's prices are a little high for older tech?

Undisclosed #3

01/10/17 04:22pm

First off its not tyco any more its johnson controls inc. or JCI. Tyco is being phased out over the next 2 years with most of the life safety already underway or or done.

it wont be long till they get to or less important ( revenue generating wise) aspect of what is left of Tyco.

That being said these guys have it made they are going out before you see some changes with Excaq so if they choose to get back in or do another start up, they will have a little more credibility. 

Then again Hikvison will throw money at anything they can easily get a job with them.

John Honovich

IPVM | In reply to Undisclosed #3 | 01/10/17 04:31pm

so if they choose to get back in or do another start up, they will have a little more credibility. 

I am sure they will have a ton of credibility, regardless of what JCI / Tyco do. They had back to back significant wins both financially and industry wise.

Then again Hikvison will throw money at anything they can easily get a job with them.

The Exacq founders are going to work for Hikvision? That sounds unlikely...

Undisclosed #4

In reply to John Honovich | 01/10/17 07:33pm

I agree with John here....

 

These guys are true industry rock stars.  The core group started TWO pretty solid companies, organically grew them based on quality and simplicity, then sold both of them to two different really big boys for bank.

I'd be interested in what they decide to do next.

Besides playing lots of golf at Ironwood. :)

Avatar

Robert Summers

IPVMU Certified | In reply to Undisclosed #4 | 01/13/17 12:49am

Had the pleasure of of being an independent rep for them (1999-2000) in the Integral days.  They and their product was way ahead of it's time.  I still have my Integral denim shirts (lol)!  I would be most interested in their next endeavor.

Undisclosed Manufacturer #8

In reply to Robert Summers | 01/15/17 05:17pm

I see a lot of travel in the future.

Avatar

Jon Dillabaugh

Pro Focus LLC
01/11/17 02:18am

With leadership running for the hills, I can't imagine this being positive for the future of Exacq. 

Undisclosed #2

In reply to Jon Dillabaugh | 01/11/17 01:11pm

I sadly agree with you that the future of Exacq continuing to perform as in the past is very questionable.  For me, it used to be Exacq, Milestone, and Avigilon were the three to compare when considering NVR + software solutions...and Exacq seemed to be the right fit most of the time.  12 months from now I'm not so sure.

Undisclosed Manufacturer #8

In reply to Jon Dillabaugh | 01/28/17 01:02am

There were some family reasons also. Last time I looked they had some pretty good hills to run for - and they own them!

Every business is someones hopes and dreams.

Avatar

Jon Dillabaugh

Pro Focus LLC
In reply to Undisclosed Manufacturer #8 | 01/28/17 01:55am

My concerns aren't for the owners who cashed out, kudos for them. The question was what now for Exacq? The instability of the founders leaving has to leave a mark. I don't know about this specific situation, I'm more talking in generalities. 

Undisclosed Manufacturer #5

01/11/17 01:54pm

As an access control manufacturer we had a good integration with Exacq and regularly encouraged customers to buy/use Exacq. However post Tyco merger, we ran into a customer issue so we requested an updated API from Exacq and were told we were no longer allowed to have it. So much for being good partners.

Undisclosed Manufacturer #6

01/12/17 08:46pm

The VideoInsight owners are at the end of their 2 years with Panasonic.  The combined brain power could yield one heck of a new company. 

Undisclosed #7

IPVMU Certified | 01/14/17 09:33pm

Exacq's executives had a 3 year earn-out from the 2013 acquisition, which would have ended in the past few months, according to sources.

Cashout leaves Exacq change.

Avatar

Brad Peterson

01/27/17 10:27pm

Well I may have to wait on my Exacq's NVR purchase based on all these comments

Undisclosed Manufacturer #9

01/28/17 12:11am

I told myself I wasn't going to post anything about this...please forgive my going undisclosed, but I just couldn't sit back and let it go anymore.

The exit of 3 of the founders was not at all unexpected, and in fact it has been planned for some time.  The reality is that all three had been moved into positions that really didn't have much to do with the day to day running of Exacq or it's product development for at least the last couple of years, based on my understanding.

Exacq will be just fine, and based on what I've seen over the past year, much of the struggles they were facing back in 2015 were largely corrected (or at least on the path to correction) throughout 2016.  Loyal dealers who know these folks don't seem too concerned...it's the less common dealers and folks from the outside who are making assumptions based on limited information.

I'm not telling you what to think at all, but I will say that Exacq is doing well and should continue their success for a while to come.  For anyone genuinely concerned and not just looking to capitalize on their perceived misfortune, I hope this helps.

Disclosure: No, I do not work for Exacq, but I know them well.

John Honovich

IPVM | In reply to Undisclosed Manufacturer #9 | 01/28/17 02:24pm

The exit of 3 of the founders was not at all unexpected, and in fact it has been planned for some time.

I believe that. People have talked about is for some time.

The issue is that Tyco's communication / explanation about what comes next is poor to non-existent. 

The reality is that all three had been moved into positions that really didn't have much to do with the day to day running of Exacq or it's product development for at least the last couple of years, based on my understanding.

That is clearly not true for Dan Rittman who was running engineering and even got involved with making sure technical issues reported on IPVM was solved.

My meta point is simple - make Exacq will be ok but it's not a strong first step to have them all leave without giving some form of positive message / explanation about future plans, especially since we agree this was obviously coming.

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