Honeywell Acquires Videofied

Published Mar 01, 2016 05:00 AM

Honeywell has acquired RSI Technologies, the company behind Videofied, for ~$123 million USD.

Rationale

*** *** *** ******* ********* ***** for *** *********** *** (*) ***** verification, ** **** **** ********* *** long **** *** *** ********** *** video *********, *** (*) *** **********, an **** **** ********* *** **** expanding ** ********, ** ** ******* ********* ****** / *** *******.

Price / *********

*** / *********'* ******* *** *** disclosed. $*** ******* ***** ***** *** a ****** ** * ***** ********, though ******* * ***** ***** ** revenue ** ****** ** **** ********.

(*******)********* ********* ******* **** ******* ***** only (*** ******* ******* *** '******') and **** *** *** ** *** *** from *** ********** ******** ** ******. 

RSI / ********* **********

*** ******* *** ******* ** ****, in ******. *** ** *** *********** operations ** *** **.

*** ******* ******* * ******* ***** installations *** ~*** *********.

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

********* ** ****** ** ********* ****** they ** *** **** * **** video ********* ********. ********* ****** ***** into **** *** *** ********** ***** existing ******* *** ******* *********.

Questions **** ********* ******** ******

** *** ********, ********* ******** ** clearly ********* ******* ** ***** ***** / ******** ********, **** *** ~$*** million ******* ******** ** ******* **** and *** **** $*** ******* *** Videofied.

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Videofied ******* ***

*** ******* ** *********'* ******* ** sound, ** ******** ********** ******** **** a *****-******** *****, ******* * ***** clip ** **** ********* *** *** that ** **** ** ***** ********* sensor ****.  

******* ******* ********** ********* **** ***** reported **** *** ***** *** ***** to ***** ******, *** ***** ******* is ****, *** *** ************* *** often ** ******* ** ******* ******* which ******* *** ******* ** ******** police ** **** ** ***** ********* in *** ***.

***********

*********'* *********** ** *******. ** *** past, ***** ***** ******** **** ***** weak *** ******** ******* ******** (***** Videofied *******). *******, ** ***** ********* improve, '***********' ******* **** ****** ******* analytics ** **** ******** ****** ********* can ******* ********* ** ******* ***** points, *** ******* ***********, ****** ***** quality.

** *** ***** ****, ********* ***** has * ****** ** **********:

  • **** ** ************
  • ** **** *** ******** ***** ** wired ********
  • ***** *********** / ****** *********** **** many ******* ******** (********* **** **** video ********* ***** ****) 

Limits ** ********* ********

********* ** ******* ***** ********** **** a ****** ******** ** **.  **** eliminates *** *********** ******** ** ********** traditional **** *********, **** ********** * simple ****** ******, *** ******* ****** to **** *** *** ******** ** that * ****** **** ******** * short ***** **** ** **** ****** the *****.  *** ******* ** ******** to ***** ********** ** ** ******** system **** *** **** ****** ****** dispatch ** ***** ******, ***** *** been * ******* ******* ** **** cities.

******* *** ********* ******* *** ********* designed ** ******* ****** ***** ***** for ************ ******** **** ****** ******, cheap, ****** **********.  *** ****** ********** unit ********** "***" ***** *******, ***** by ****** ********* ** *** **********.  Ease ** ************ ** *** ** part ** *** *******-******* ******* ***** eliminate *** **** *** ***** ******, but **** ******* ******* *** ******* to ****** **** *****.  ***** ** the ********* ******** ********* *** *** positioning *** ******* ** ********* *** end **** ***** **** **** *********** with, ****** ****** *** ********* *** system.

* ********* ****** ***** **** ** installed **** ** ****** $**** *** a ****** * ******* ******, ********* on *** ********** ********.  **** ************ unit ***** ** **** ** ***** a ********** ***** **** (*** ******* unit ********** * ***** ** **' for *** ** ****), ***** ***** coverage ** ***** ***** ************* ********* in **** **********.  

****** *** ********* ** ****** ********* from *** ***, *** ******** **** is ********** **** ** ******* *** PIR ****.  **** **** ** **** on-site, ** *** ******* ******* **** not *** *** ***** ******* * truck **** ** ******** ** ***** the *****.

***** ** ** ********* ** ***** with *** ********* ******, *** ** logical *** ** *** * ***/*** to *** ****** ** **** ** CCTV-like ************.

*********** ******** *** **** ***** "***** cameras" **** ***** ********* ** ******** motion *********.  ** **** ***** ****** apps **** ***** **** ********* ** even ******** ***** ******** *** ********* or ******** ** **** ** *** base ******.  ************* ** *** **** via ********, ***** ****** *** *********** to ** **** ********.  ******** **** of ***** ******* *** ****** ** 5x *** ******** ** * ********* device, ******** ********* ** ******* ******** and ****** ********** ***** ** ******* more ******.

** ****** *** ***** ******* **** come **** **** *** *****, *** standard ******** (**** ** ****** ********* or ***** *********) **** **** ******** in **** ******* *** "****" ****** has ********** ** *********'* ********.  

*** ********/******** ****** ** *** ********* platform ******** ** **** ******* ** with ************ ** ***** ***********, ****** it **** ** **** ******** ************ at *****.

** ******* **** *********'* ***** **** been ******* ** ****** ***** *** the *&* ***** ** ********** * new ******** *** **** **** ******** to *********.

 

****: ** **** ** ****** **** with **** *********** ** ** ******** the ***** *** *** ********.

Comments (9)
Avatar
Armando Perez
Mar 01, 2016
Hoosier Security and Security Owners Group • IPVMU Certified

Im confused...

http://ipvm.com/reports/honeywell-try-sell-security

U
Undisclosed #1
Mar 01, 2016
IPVMU Certified

New tires sell old cars.

JS
Jeff Sandine
Mar 01, 2016
RadiusVision

Here's a scenario where Videofied often beats an IP security camera system:

For small to medium sized remote location projects (fenced) with no utility infrastructure, Videofied is one of the most cost effective solutions available. I've quoted customers solar powered high res Mobotix camera systems with 4G/LTE comm for $20K+ and also quoted the Videofied battery powered solution for $3K. While prospects initially say they want live high res video, they often choose the $3K Videofied solution with a low image quality 10 second video clip of intrusion sent to a monitoring station via cellular comm. The monitoring station only needs to know that someone is there when they should not be, no further detail required, they can fire off siren/strobe to chase away the intruder while the police are on the way. And, since the Videofied system requires monitoring, there's RMR with the system sale.

(1)
Avatar
Scott Gerrels
Mar 01, 2016
IPVMU Certified

Its all about ease of install. The quality of the video means little, its just verification that someone is on site when no one should be.

With the company I'm with, we don't deal with this stuff (all Fortune 500 clients) but i can definitely see the niche for small to commercial businesses.

I sold quite a bit of this stuff when I worked for Stanley, but like I said, different market. Its cheap, but it works.

TS
Tariq Saleh
Mar 02, 2016

As a relative news; United Technologies rejects Honeywell's $90.7 Billion offer

CH
Chris Hammond
Mar 02, 2016

I am puzzled as to why Honeywell acquired to gain position instead of developing their own. Is there that much secret sauce in Videofied? Honeywell clearly has a tremendous amount of experience and resources in the intrusion detection space. It seems like making an investment in R&D to create their own competing product isn't a $123M stretch. And, Honeywell already has global reach with their brand so it does not seem like Videofied or RSI have that much brand value. Is there a patent issue?

JH
John Honovich
Mar 02, 2016
IPVM

"It seems like making an investment in R&D"

Honeywell Security does R&D????

In all seriousness, the time and effort to build their own is probably beyond what any conglomerate typically does.

Avatar
Derek Arcuri
Mar 03, 2016
IPVMU Certified

I'm puzzled. Isn't Honeywell trying to sell off their security business?

http://ipvm.com/reports/honeywell-try-sell-security

Avatar
Brian Karas
Mar 03, 2016
IPVM

Derek - Yes, it is somewhat puzzling since Honeywell hasn't confirmed anything publicly. As the report you linked to, and the WSJ article linked in that report, covers it appears that Honeywell wants to unload some portions of its business associated with security.

Honeywell has an "integrator" business portion that deals with security and also a "products" business that deals in security.

They may sell the portion that contains the integrator business and keep the products business, or sell both together, or sell both separately.

I think we'll continue to see more news regarding Honeywell M&A business this year.