Hikvision First Western Acquisition - Alarm Manufacturer Pyronix

Author: John Honovich, Published on May 19, 2016

Hikvision has $1.5 billion, at least, to spend internationally.

Now, they have done their first Western acquisition, acquiring UK alarm manufacturer Pyronix.

In this note, we review Pyronix's financials, their market position and the potential impact of this deal.

********* ***$*.* *******, ** *****, ** ***** ***************.

***, **** **** **** ***** ***** ******* ***********,********* ** ***** *******************.

** **** ****, ** ****** *******'* **********, ***** ****** ******** and *** ********* ****** ** **** ****.

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

Pyronix ********

********* * ** **** *** ***** ************ ***** ******* ******** is *** ** / ****** *** *** ****** ******** ** North *******. *** ******* *** ~*** ********* *** **** ** the ***** ** $** ******* *** ****** *******.

*** ******* ** ** ***** **********, **** ******* ********* ** video ** ****** *******.

**** ** ***** ** ******* **** *** *********, ******* ** solid *** *** ************* *** ****.

Financials *******

******* *** ***** **** **** *** **** * *****, ******* doubling ***** **** **** **** ** **** ** ~$** ******* USD, ********* **** *******. *** ******* **** ******* ***** *** ****** ** ~*%.

Acquisition *****

**** ***** **** *** ********* *** ***** ***** *******, ****** and *******, * ********** ***** ***** ** $** - $*** million *** *****.

******: *** ********* ********** **** **** ********* **** **** ~$** million *** *** ******* (************ *** ****** ******* *** **** Pyronix ***). **** ** * ************ *** ****** *** **** than ******* / ***'* ****** *******.

*** *********'* ******* **** (~$* ******* ******* ** ****, **** is * ****** ***** ****).

Continued ** *************?

********* ***********'* ****** *** *** *** *** ******** ** *******, ********* will ******** **** ******* **:

********* *** ***** *** *********** ********** ** *** ** *** particularly ** *** **-***** *************, **** ***** ** ************ ****** operations.

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

***** ********* ****** **** ********* ********* ******** (****** **** ** China **** '********'), ********* **** *** **** * ****** ********* offering. ********* ******* **** ********* ****. *** ******* ************ **** as * ********* / ******* ** *** ****:

"********** *** ******** ************ ** ***** ************ *** ********* *********"

End ** *** *********

****** *** ***** *******, ********* ***** ** ***** ** ******* end-to-end *********. ******, ** *****, *** **** ** **** **** the ***** ********, **** ********* **** ** ****** ** *** users *** ******* ** ** ****.

**** *******, **** ******* ********* ** *** ********* ** **** end ** *** ********.

** *** *** ****, ********* ** ************ ****** **** ***** dealers, ** **** ***** ** * ******* ***. ** *** other ****, ***** ****** *********** **** ***** ** **** ******* / ******** *** ****** *** ***** ************ ***********.

More ** ****

** ******* **** ** **** *** ********* *** *********. ** will ** *********** ** *** ** **** ** * **** of ****** ** **** (****** ************ ***** **** **** ***) or ** ********* ** **** ******* ** *** ******, **** strategically ********* ****.

****

Comments (33)

**** ***********!!! *** * ***** ** ****** ** *******...

***** **** ****'** ******** *** *** ******** ***** *******. **** is ********* * ******** *** ****. * ***'* **** ***-**-*** control *****/****** ******* *** *** *** *** ** **** **** 99% ** ***** ********* *****.

**** - **'* **** * ***** ***** * *** ******* involved ** ******** ***** *******, *** * ****** ********* ******** sensors ***** ****** * ****** ***. * ******* **** ** the **** ****** ******* *** ********* *******?

***** * ***** ******, ** ***** ************** ***** * **** *******/***** ** ***-*******, ********** **** *** sensor ** *********.

********** ******** ** ********* **** *** ***. *** *** ****** the ****** ** **** *** ******* ******* **** *** ***** and *** ***** ** **** ******* ** *** ****** ********. This ****** *********, **** *** *** ********. *** ****** *** turn *** ****** *** ***** *** ****** ** ******** ** the ******* **** ** ****** ********** ** ********** ********** **** traditional * *** ************* **** *** **** **** ****** ***** sending ******* *** *** **** **** **** *** ****** ** disarmed

*** ** *** **** *********** **** ***** *** *** ** the ** ***** *** (** ** *********). ********* ** ***** to ******* *** *** **'* **** ****.

****** **** ** ** *** ****'* *** *** ******.

*** ******** *** **** ***** ***-*** ******** *** ***** ** the ** ********, ***. * ***** **** **** ********** ** 1-way ******** *** ***** **** *** *** **** ** ******* in ***-*** ******** ******* ***** ** * "***** ****** ******" in *** ********* *****. **** ** *** *** **** ****** on ******* ** ******** ***** ******* *** *** **** *** easy ** **.

*** *** ** ******, *** *** ** ****** :-)

*** ********** *** ** *** ********, ***** ** *** ***** knight?

** **** ** ******* *** ***** *********, ** ******?

**'* ******. **** **** ******** ** '***' ** * ******* the ***** **** ** **** **. ********* ******* ** **** their ********* *** **** ************* ***** ******** *** *** **** systems.

********* *** ***** *** *********** ********** ** *** ** *** particularly ** *** **-***** *************, **** ***** ** ************ ****** operations.

** ***** ** *** **** ****** ** ***********. **** **** got * "***********" ** ****** *** *** **** ****** **** to ** ** ***** *******. * ** ******* ** **** be ******* **** *** ***** *************.

** ** *** **** * *****. *** ******* *** * product. *** **'* **** ***** ************. *** **** **** * European **** **** *******. **** *** **** ******* ******* ** the ** *** ****** ** *** ** **** **** ** then ***** **** ** **.

** ***** ** **** **** ** ***** ****. **** **** bought * ***** **** *** ***** ****** *** ***** ** convincing * ****** ** ***** ****.

Financials *******

******* *** ***** **** **** *** **** * *****, ******* doubling ***** **** **** **** ** **** ** ~$** ******* USD, ********* **** *******. *** ******* **** ******* ***** *** ****** ** ~*%.

Acquisition *****

**** ***** **** *** ********* *** ***** ***** *******, ****** and *******, * ********** ***** ***** ** $** - $*** million *** *****.

******** **** ******** **** **% ** *.****, *** $** - 100 ** *********** ***** ***** ** */* ** ** ** 44x:

  • *** ***** ******* ******** ********* *** ******** ************ (******* ********) or ** ********* ****** * *** ******* ******* **** **** the ****? *&* *** ~*** *** ******** **** ~***, ** the **-**+ ****** **** *** * ***-****** ****** ********.
  • *** *** ***** ** *** ******* ** *********** ********* (*/* and */*) *** *** **** ****** *****? *** ********** **** (http://www.ifsecglobal.com/hikvision-to-acquire-pyronix/) ** ******* *** **** *** **** ***** ** ********.

******. ******* **** *********** *******.

*********** ********* *** ******** ********* *** ********* ** *** * - ** */* *****. * ***'* **** * ***** ** it *** *'** ******* ** ** ***** ***** ** *** past * ***** *** ****'* *** *****.

*/* ** **** ** ***** ******* **** ** **** *** not ****** ********* *** *****'* *** ** **** ******* ***** profits (********** ***** *** ******* *** ****** *** **** *** more **** *******).

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

** ** *****, * ** *** **** **** ********* ****. I ****** **** **** *** ***** **** *** ******** ********* is ************ (********* *****). ** ******* ** ********* *** ****** manufacturers (****** *** ****** ** **** *********). * ****** *-** because *******'* ********** **** ***** *** ****'* ********* *** ***** for ***** *********.

*******, * ***** *** ** ******* ** **** **** ** revenue ****** ******* ******* ********* **** ** ** ******, ** general, ** **** ********** ****** ** **** ** **** ******* companies (**** ** ****, *** **** ** ******* *** **** of, ****, ******* ** *** ******* **********). *****, **** ****, I ** *** **** **** *** **** *** **** * ever ****** **** ******* ** **** * ***** ** *** open **** ***** ** ** **** *****.

*&* *** ~*** *** ******** **** ~***, ** *** **-**+ seemed **** *** * ***-****** ****** ********.

*** ***** ********* *****.

***** *** ********* ********* ****** **** ********* *********. * ******* like ********* ** *** ***** ** ***** ******* ** **, and **** *** **** ******** *** ****** **** ** ********* corporate.

********* ***** ****** ******* ****** $*** ** **** $*** ******* (if **** ****** / ******) ****** ******* **** **** *** benefit ** ********* ******* **** *** ********* ***** *******. ** an *********** ******* ****** ** ****** **** ~$** ******* *******, how **** ******* *** ********* ******** ******* ******* ******** ******* its ********? $*** ******* ******? $*** *******?

** **** ***, ******* ******* *** *** * **** ********** on *********** *****.

********* **** **** * **** **** ********** **** ********* ** its ***** *** *** ******* ******** **********, ** ** ******** its ************.

*** *** ******* ********* **** *** ******* ********* *** *** a ****** **** *** ***** ** ******. * ****** *** on ******** ** ****** ********* *** ******** ****** ** *** Chinese **********, ***** *** ** * ******** **** *** ******, AnBang *********.

**, *********** ********, ***** ** * ******* ** *** **** Hik ***** ***** ** ************.

*** ******* ********* ******* ******* ********* *** *** * ****** **** *** ***** is ******.

*** **** ****? **** ******** ******.

** *** ****** *** **** (*) *** ***** *********** ** the **** ********, ********* ** ***, *** ** * ******* to **** * ****** ********* ****** ** *** (*) ******* companies ********* **** ** *** * ******* *** *** **** to ******* ********* ** ******** ******** ** ******* ********* (*.*.****** ***** ***********).

**** ** ****. **** ****** *** ** ****** *****. *** for ****, ******* ********* **** *** ****. ** ****, ** Q1 ****, ******* ********* ********* ******** *** ***** **** *** BN *** ** **************. ***** ****, *** ** **** **** in ****.

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

*) *** ***** * ** ******* **** ** **** ******* stocks ** ******** *** ***** *** ******? ******* ***** ****** has ***** *** **** ********** ** ** ********** ****.

*) *** ******* ******* ****** ** **********. ***** **** ******* a ******* ***** *** * ***-******* ****** ******** ****** ** regulatory ******** *** ************. *********** ********, * ***'* ***** ** is **** ******. ***** **** * ******* **********/****** **** * non-chinese ****** ********* ***** ****.

******, **** * ****** ** **** *** ***** ******* ******** by *** ******* *** ** ** ********** ** *** **** of ******* ***** ****** ********* *** ******* **********. *** **** that ******* **** **** **** *** ***** ******** *** **** fear ** *** ******* *** **** ** *****. *** ********* might ** *******, *** *** ******* *** *** ************* *** completely *********.

*** **** **** ******* **** **** **** *** ***** ******** the **** **** ** *** ******* *** **** ** *****.

*** ** **** ** ****** *** '******* **** **** **** the *****'? **** ************ ** ** ******** ***** **** *** to ****** ** **** ****?

* ****** ** **** *** ***** ******* ******** ** *** Chinese *** ** ** ********** ** *** **** ** ******* stock ****** ********* *** ******* **********.

*** ** ***** ****. ** ******** **** ** ******** ** U4 *** ******* **** ** - ** */* ****** ****. And ** ********, ***** * ******* *** ****** ****, ** that ** ********** **** ******** ***** *** ********* ************.

*** ** **** ** ****** *** '******* **** **** **** the *****'?

** ***.

*** ********* ********* *** ********* ** ********* *******: ***/***/******* ***** manufacturers, *********** ***/*********, ***-**-*** ******** *******, **** ******, *********** *** others.

** ** **** **** ** */*, ******** **, **/****, **/******, EV/operating **** **** ***., **** ******* ********, *********** *** ***/*** video ************* **** *** ****** *********, *-** */*;

***-**-*** ******** *******, **** ******* *** ***** **** ******* *.*-*.** P/S *********.

***/********* *** **** ****, ** *******, *** ******* *********, *-** or **** ****** */*.

*** ***, * **** * ***** ********* *** *&* ***** (public ** *******) ** *** ******** ******** ******** ** *** last ** *****. *** ***'* ***** ** ** ***. ***. Feel **** ** *** ********* ****.

*********** *** ***/*** ***** ************* **** *** ****** *********, *-** P/S;

**** *** ********** ***** **** ** ** ****** **. *** example,*****/*********** ******* ***** **.******* / ************ **** **** **. *******/******** ***** **.

** *** ** ********** ** *** ** ********. **** **** M&A **** *****, **** * ********** ** *** ************ ***** the */* *** *.* ** ******?

**** *** *****, ****, ********** ***** **** ** **** *** lowest *********. **** **** ***** **. *.*-** ***** ** **** suitable *** ***********.

********** - ******; ******* - ********** *. *** **** **.

*** ** ******* ****** ************* **** ** **** *-*.** *********. 1.5X ** ****, *** ** ** *** * ***. *******, for ********, *** * *.*** *********. *** *** ***** ***** Mobotix ** **** **** ** ******* ******.

*******, ** *** ********, **** **** *******: ****** *********, *************, RMR *** ******* ***** ** *****, ********* *** ******* ******** valuation. *** ****, *** ***** ** *** ******** ****** ************* as *** ******* *** *** ***** ** *** ********.

***** *** ***** **** *** **** *** **** *** *****: Exacq, *********, ************, ******, *****, *******? */* *** */* ** you **** **.

***** **** ** **** ** ** *******. * *** **** of ***** ***** ****** ** **** ** ***** ********** *** was ****** **** **** **** ******* **** **** *******. **** like **** ****, **** *** ******* ******* **** ***** ******* so *** ***. ** **** ******** ** *** ***** ******** by ************ *** **** *** **** ******* **** **** ** on ***** ***** ************ ********, **** ***** ******* *** ***** industry.

** ** ******* ********* **** ********* *** *** *** ****** for **** ******.

*** ***** *** *** ***** **** ** ********* *** *** a ******* **** ** **** * ****** **** **** ** the *** *** **** ** ***** *** ********* ********.

****,

********* ********* ********** ****** *** ***** ** ******* *** **** **** *******. **** ** ****, **** *********'* presence ** *** ** *** ***** ******* *** ***** ******* questionable, ** *** * *** ** *****.

***, **** ********* ** ****** ********** ** *** **, ** makes * *** **** *****. ** * *** ********* *** was ***** ** *** * *** ******* *****, *'* ** for ******** (**** *'* ** *** ******* *****, *** **** would ** * **** ****** ** **** ** *****).

****,

* *** ******* ** *** ***** ******* ** ****.

* ***** **** *** **** ******** ***** ** ** **** target ***** *** *** **** ***** ********** *** **** ***** foot **** **** **** ***** *** ** ****** ****** **** the *** ******.

*** ***** **** *** ****** **** *** **** ** **** cash.

****** / ****** ***** ** * ******* *********** ** **** are *** ****.

* ***** ***** *** *** ***** ********** **** ********* *** in ***** *****.

*** ******* *** **** **** ****** *** ********.

**** ******* ***** ************* ********* **** ** *** * ** 10 ***** ****** *****. **** ***** **** ****, *** **** awhile *** ***'* ******* ** ******* ****. **** ***** *** Radionics, **** **.** *** **** ******* **** ** ******* *** 8 ***** *******.

** ********* ***** ** *** ** *** ** ** ** view, * ***** ** *** ***. ******* ***** ******** ***'* sell ******* *******, ***** ****** **** ***** ******** **** ******** reset, * **** **** **** ****** ******* *****. **** **** a ******* ******* ** *** **???

***** *** *** **** **** ***** ** *** **** *** I *** ** ****** *** ******* ** ** **** **** are ***** **** **** **** ****. ** ** *** **** to **** ****** *********.

*** ***** ** *** ***** ***. * ***'* ***** **** would ****. ** **** ***, *'* ** *****.

********* ***** *** ****** * ***** ******* ** *** ****. *** ******** ** ********** *********, ******** **** ** ********** how ** ***** *********'* ******** ******, *********** *** ******* **** help ** ************ *** ********* ** ******.

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

********, ******** ********* ******* ********** **., ***. (*********** ******** ** as "*********") ******** *** ******* ******* ****** ******** ******* (*********** referred ** ** "***"), **** ***** **** ********* ********, *** became *********** ********* * ****** ***** **********.

*** **** ******* *****, ***** *** * **** ********** ** Europe.*** **** ******** ******* ****** *********, ******* *********, ******* *****, wired *** ******** ******** *******, *********** ******** *** *** ***** services.*** ** *** ** ****** ****** ** ********* *****, ****** great ********** ** ********** *** ******* **********, ******* ********** ********* to ******** * ***** ********** ** *********.*** *** ************ ** *** ****** ******* *** *** ******** Union ** ******* ******** ********* *** *** ******** ****** **** a **** ************* ** ******** ***********.

*** ***** ******* ***** ** *********, **** ****** ********** *** complete ********* ****** ***** ****** ******* ****, *** *********** *** be *** ***** *********** ** ******** *** ************, ** ****** the ******** ******* ****** *********, ******** *** ****** ******** ***** field ** ********** *** ******* ********, ***** ********* * & D ************ *** *************** ********* ***** ********.*** ********* ** *** ******** ****** *********, ********, ******** *** brands, ***., **** ****** ******* ******* ******** ******* ********* ****** support.

**** *** **** ******, ********* ******** ****** ** *** ****** market, *** ********** ******* *** ************ ******** ** ********, ****** the ******* *** ******* ** ************ ******** ******** *******, ********* brand *** **** ********** ** **** *** **** *********.******* **** ***********, *** ******** * & * **** *** production ******** **** ** ********* ******** *** *********** ******* *** supply ***** *********** ******* *******, *** ******* ******* *** ** R & * ******* *** *** ******** ** ********** ** the ****** ***** ** ******.************ ***** * & * *** ****** ******** ** ******* important **** ********* ************ ******** **** ******** ** ******* *** company's ************ ******* ************ *** ****** ***************, ******* ********* ** achieve ******* ****** *********** ** *** ****** ********* ********.

*******'* ***** ** *****, *** *** ********* **** *** *** matching ***:

******: ********* ** ******** ** ******** ******* ********** **** ********* video ************ ********, ****** ******* ******:

************ **** *** ******* ** *** **** * ***** ************ manufacturer *** * ***** '***-**-***' ****** ********* ********, ********* **** be ********** ***** ******** ******** *********, *** ******* **** & business ******** ******.

******: *** ********* ********** **** **** ********* **** **** ~$** million *** *** ******* (************ *** ****** ******* *** **** Pyronix ***). **** ** * ************ *** ****** *** **** than ******* / ***'* ****** *******.

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