IndigoVision Takeover Battle

Author: John Honovich, Published on Jan 10, 2012

Less than a month ago, IndigoVision's CEO 'resigned'. Since then, the situation has devolved into a very public takeover battle with the CEO saying he was forced out and now leading a new effort to take back his former company. In this note, we examine what is going on and what this means for IndigoVision's competitiveness.

[UPDATE: Jan 30, 2012: Takeover Talks Terminated.]

Let's start with a statement provided to us by the new CEO of IndigoVision recaping the action and his outlook for the future:

"There were offers in November, from [the former CEO] / [Scottish Equity Partners (SEP)], to take the Company private however they we not close to a level that merited serious consideration by the Board and were unequivocally rejected.  Also the requisition for a General Meeting to replace two directors was withdrawn on 28 December.  A trading update was issued on 25 November stating that operating performance in the financial year to that date was significantly higher  than the corresponding period in the previous year and materially ahead of the same period in any earlier year.

The position currently is that stock exchange takeover panel have given SEP till 20th January to clarify intentions. That means that anyone with one per cent or over has to declare their holding. It does not mean there is an offer. Nor does it mean that there will be an offer. It is a process to make holders declare holdings, and to force SEP to put up or shut up."

These events have been similarly covered in offical statements from IndigoVision (e.g., Scottish Equity Partner's statement and local newspaper coverage). One element that might be unclear is the reference to a Takeover Panel which is a UK regulatory body (see wiki entry) that oversees mergers/acquisitions.

Takeover?

We have no idea how likely a takeover will be. However, numerous sources indicate that the former CEO had been and is likely still working on a plan / offering to retake IndigoVision. As he stated to the Herald Scotland last month: "The direction in which the chairman is taking the board and the company is not wise. I look forward to getting back into the business and bringing on board some new directors with a fresh perspective on how to take the company to the next stage of its development."

Impact on IndigoVision

Takeover battles, especially in such a public, divisive form are risky and potentially quite damaging to the company involved. Typically, these events are bad for employee productivity as they are highly distracting. Plus, the can be disconcerning to partners and end users who do not know what is going to happen. Indeed, if you are an IndigoVision customer, prospect or partner, this is something that must be tracked carefully and weighed appropriately in one's decision making, especially given how many strong and robustly growing competitors there are in IndigoVision's space.

Ultimately, we still believe the company has a lot of work to do (as noted in the analysis of the CEO resignation). While IndigoVision has a strong technology foundation and has made efforts recently to open up, smaller competitors have developed more aggressively than IndigoVision over the last few years, increasing IndigoVision's challenges in defining a clear competitive position.

Comments : PRO Members only. Login. or Join.

Related Reports on Acquisition

Stanley Security Acquires 3xLogic, Kushner Becomes Product President on Sep 10, 2018
Stanley Security acquired 3xLogic a few months ago. However, the company has still not officially publicly announced it, leading many to wonder...
Arecont Acquisition By Costar on Jul 11, 2018
Arecont Vision acquisition by Costar Technologies has been approved by the court, concluding the bankruptcy process triggered by Arecont's...
Eastern and SavvyTech Merge, Form ENS, Targets ADI on Jul 09, 2018
ADI, ENS is coming for you. Or, at least, they hope. Two US distributors, NY based EasternCCTV and California based SavvyTech have merged, to...
New Top Bidder, Arecont Goes To Auction on Jul 05, 2018
$10 million cash will not be enough to buy Arecont. Though Arecont signed a purchase agreement with a turnaround specialist, a rival video...
Simplisafe Acquired At $1 Billion Valuation on Jun 29, 2018
Simplisafe, the competitor alarm monitoring companies historically most love to hate, has been acquired by a mega private equity firm for a $1...
Allegion Acquires Isonas on Jun 29, 2018
Isonas failed to 'revolutionize' access control as they regularly claimed. Now, nearly 20 years after their founding, they are being acquired by...
Pelco Is For Sale on Jun 27, 2018
Pelco is for sale, being shopped by an investment bank, IPVM has confirmed from multiple sources. The company, acquired by Schneider Electric in...
Buy Arecont: Top Bid $10 Million Cash on May 22, 2018
Last year, Arecont had a deal for a purchase price of $170 million (see Failed Arecont China Acquisition). This year, Arecont has a deal for a...
Canon Acquires Briefcam, Now Owns Briefcam, Milestone and Axis on May 09, 2018
Canon already owns two of the biggest names in video surveillance, Axis (acquired in 2015) and Milestone (acquired in 2014). Now, Canon...
Nortek Acquires IntelliVision on May 08, 2018
One of the largest intrusion manufacturers, Nortek, has acquired the self-proclaimed 'Leader in AI-Based Video Analytics Software',...

Most Recent Industry Reports

Startup SafePass Profile on Oct 19, 2018
A major problem with visitor management is that the systems mostly require adhesive printed paper labels and paper logs, creating waste and an...
China Is Not A Security Megatrend, Says SIA on Oct 19, 2018
The US Security Industry Association has released its 10 "Security Megatrends" for 2019. SIA declares that these megatrends, such as "Advanced...
Hanwha Dual Imager Dome Camera Tested (PNM-7000VD) on Oct 18, 2018
Hanwha has introduced their first dual-imager model, the PNM-7000VD, a twin 1080p model featuring independently positionable sensors and a snap-in...
Camera Height / Blind Spot Added to IPVM Camera Calculator on Oct 18, 2018
IPVM has added camera height and blind spot estimation to the Camera Calculator. This is especially helpful for those who need to mount cameras up...
Axis Strong US Growth, Flat EMEA - Q3 2018 Financials on Oct 18, 2018
This spring, Axis had its best financials in many years (see Axis Strong Q2 2018 Results). However, over the summer, Axis had many products sold...
Best Alternatives to Banned Dahua and Hikvision on Oct 17, 2018
With the US government ban and a growing number of users banning Dahua and Hikvision, one key question is what to use for low cost? While Dahua and...
Video Quality / Compression Tutorial on Oct 17, 2018
While CODECs, like H.264, H.265, and MJPEG, get a lot of attention, a camera's 'quality' or compression setting has a big impact on overall...
Knightscope Winning Investors, Struggling With Growth on Oct 16, 2018
While Knightscope's new financials show the company only winning 11 new customers in the past 12 months, the company continues to win new...
Integrator Laptop Guide on Oct 16, 2018
This 18-page guide provides guidance and statistics about integrator laptop use. 150 integrators explained to IPVM in detail about their laptops,...
Huawei Admits AI "Bubble" on Oct 16, 2018
A fascinating article from the Chinese government's Global Times: Huawei’s AI ambition to reshape industries. While the Global Times talks about...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact