FLIR Acquires Lorex

By John Honovich, Published Oct 25, 2012, 12:00am EDT (Info+)

A stunning deal of a truly odd couple: Thermal camera leader FLIR has acquired home/budget surveillance specialist Lorex for $59 million. While not well known, Lorex has quietly become one of the biggest surveillance companies, on pace for ~$75 Million in revenue this year. Not only is this sizeable but the combination is extremely atypical. This deal has the potential to be a huge move for a FLIR or a comedy. In this note, we dig into the details and analyze FLIR's plans, based on a conversation with FLIR executives.

Key *******

** *********** ******** *** **** ** to **** ******* **********. ***** *** company ** * ********** ** ********** and ******** **************, ** ******* ************** an ********* ******** *** ******* *********.

*****, ** *** ***** ****, *** built *** ******** ******** *****. * high ******, *** **** ******** **** through ****-****** ************, ****** *** ******* big *** ********* (*.*., ******).

** *** **** **** ********, ********* attract *** **** ********** **** ***** perfectly.

** **** ***, **** ********** * key *******:

  • "****** ******* ******* ** *****'* ******** Digimerge *****"
  • "* ************ ********-***** ******** ******* (*********)" **** **** **** ** **** into *** ************ ******** ******
  • "******** ** ****'* ************* ************ ** Lorex's ****** ***** ******** ********"

*** **** ***** ** ************* *** most *************. **** ** **** *** help **** **** ***** ******** ***************, it **** *** **** **** ****** on *** ****** *******. *******, *** other *** *** ***** ***********.

Adding ******* ** *** *** ***

**** ****** ***** ** ****** ** the ***-***, ** **** ****:

**** ** ***** ** **** **** what **'** ******** ****** ** *** strategy *** * ****, **** ****, introducing ****** ******* **** ****** **** Costco *** ***** ******, ** *** will, ********* ********** **** ***** ***** do, *** ******* **** ** *** strategy *** ******* ** ** *****.

**** *****, * '*****' **** ******* camera ** $*,*** ***** * ********* Lorex ****** ** * *** *******, at ****.

**** *** ***** ** * ****** to*********** ********** ******* **** *** ***** end ************ / ******** ******:

**** ** ****** *** **** *** the ******* ** **** *** ********** and ****** ** **** ***** ******* line, ***** ** ***** **** ** significantly ******** **** ** ***** ** revenue ****** *** ******.

*** ***** **** ** **** ***** knows *** ** **** **** ** cameras. **** ***** *****'* ****** **** sales ** ***,***+ *******, ******* **** Lorex *** ******* ** *** ****** volume ***** **** **** ***** ** optimized *** ***** ******* ** ********* expensive *******.

*** **** ********** ** *** ***** ***************** *** ******* *** ************ ******** with ******* ******* ******* **** *** far **** ********* **** **** ****** else ******, ********* ****.

Competing ******* ****, *****, ***** **** **

**** ****, *************, **** ** ******* up ** ******* ** *** ** end ***** ** ******** *******, *** just *******:

**** ** ***** ********* **** ** call ** *****, * *****, ***** be **** **** ***** ** ** buying * **** ***** ** ******** from **** *** *** **** * thermal ****** **** ****.

** ** **, **** *** ********* Lorex's**************:

*** **** ** *****, * *****, an ************ **** **** **** ** at *** ********* ****, ***** ** the ************ ********** ****** ** *******. And ****'* ***** *** ***** *************, I *****, **** * ********** *******, a ********** ******* ** *** *********** side.

***** ********* ** * '************' ********, it ** ********* ** *** ***** end ** *** ******. ***********, **** are ******* ** **** **** ** go **** ** **** ******* *** biggest ******* ** *** ******:

*****, ** ********** ***** **** * FLIR ******* ****** *** **** ******* it ******** **** * *****, ****, Bosch, ********* **** ****, **********-***** ******. And ** **** **** ** *** offer ** **** ********** ** ********** class ** * ******* **** **** have * ********** ***** *********** ****** those ***********. *** ** **** *****, those ************** ********* *** ********* **** are ******** ** ******* **** ** as **** ** *** ******* *****. So * ***** **'** **** **** willing ** **** ** **** ***** of ***********.

***** *****, **** *** ***** *** all ********* **** *** ******* ******, we *** ********* ** ****'* ******* to ****** **** ** *** ************ camera ****** ******* ********* ******* ****. While ***** *** **** ********** ******** for *** **** ****** ****, **** need ********* *********** ** ***** ********* Axis, ***** *** *****.

**********

***** *** ********* **** *** *****, the ***** **** *** **********. **** is ********* ***** *** ~$** ******* USD, ******* **** **** *****'* ********* 2012 ******* ** ~$** ******* ***. And *********'* ~$* ******* ****** **************, ** ** * ********** **** acquisition. *******, ** ** * *********** strategic ****** ****, ** ********, ***** greatly ****** ****'* ******** ** *** market ** ***** **** **** **** foolish *** **** * ******. **** will **** *** **** **** ********* be ** *********** *** ** ***** develop.

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