IndigoVision Takeover Battle

By: 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  Also the requisition for a General Meeting to replace two directors was withdrawn on 28 December.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 [link no longer available] 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

Acquisitions - Winners and Losers on Dec 10, 2019
Most major manufacturers have been acquired over the last decade. But which have been good deals or not? In this report, we analyze the...
Alarm.com Acquires OpenEye on Oct 21, 2019
Alarm.com is targeting commercial expansion and now they have a commercial cloud VMS with the acquisition of OpenEye. In this note, based on...
Dahua, Hikvision, Huawei US Ban Rules Released on Aug 08, 2019
The US government has released rules on how the 2018 NDAA ban of Dahua, Hikvision, and Huawei will be implemented when it takes effect in 5...
Motorola Acquires Watchguard, Adds to Vigilant And Avigilon on Jul 15, 2019
2 years ago, Motorola had no position nor relevancy to video surveillance. Now, they own major video surveillance, LPR and body camera providers...
ADT Eliminating Acquired Brands, Unifying Under 'Commercial' Brand on Jun 14, 2019
ADT is eliminating the brands of the many integrators it has acquired over the past few years, including Red Hawk, Aronson Security Group (ASG),...
OpenALPR Doubles Prices on Jun 06, 2019
There is no 'race to the bottom' in cloud / AI video surveillance. In May, Verkada increased their prices. Now, OpenALPR is doing the same with a...
"New" Arecont Fixes Failures "Without A Fight" on Jun 05, 2019
The "old" Arecont was infamous not only for its camera failures but for making their "partners" fight to get them fixed. IPVM drew the ire of...
Panasonic Sells Off / Spins Out Security Business on Jun 02, 2019
Panasonic has sold off its security systems business to a private equity firm, after suffering years of challenges. The new company, which will...
Pelco Sold Off, Now Independent on May 28, 2019
Pelco has been sold off by Schneider Electric, completing Schneider's terrible tenure, but giving Pelco a chance at life. IPVM spoke with...
ACRE Acquires RS2, Explains Acquisition Strategy on Apr 19, 2019
ACRE continues to buy, now acquiring RS2, just 5 months after buying Open Options. One is a small access control manufacturer from Texas, the...

Most Recent Industry Reports

ADT CEO Not Worried About DIY: "2 Discrete Markets" on Dec 13, 2019
ADT's CEO is not worried about DIY, characterizing DIY and ADT's DIFY as "2 discrete markets" at the Imperial Capital Security Investor's...
Hikvision CEO Alleged Illegal Activities Investigated on Dec 13, 2019
Hikvision's CEO Hu Yangzhong is under investigation for suspected illegal activities, according to the PRC's securities regulator. This has become...
Video Surveillance 101 Course Opened on Dec 12, 2019
IPVM is adding a Video Surveillance 101 course, designed to help those new to the industry to quickly understand the most important terms,...
Verkada Notification Outage on Dec 12, 2019
Verkada is suffering an event notification outage and analytic search failures. Inside, we examine what the issues are, what Verkada told IPVM...
Hikvision DS 2nd Gen Intercom Tested on Dec 12, 2019
With its newest IP intercom, Hikvision proclaims users can 'get full control over an entrance' regardless of where it is installed, home or office...
Honeywell 30 Series Cameras Tested Vs Dahua and Hikvision on Dec 11, 2019
Honeywell has infamously OEMed Dahua and Hikvision for years, but now they have introduced an NDAA-compliant line, the 30 Series, claiming "lower...
"Good Market, Bad Business Models" - Residential Security on Dec 11, 2019
Industry banker John Mack, at his company's annual event, took aim squarely at the problems in the residential security...
IP Camera Browser Support: Who's Broken / Who Works on Dec 10, 2019
For many years, IP cameras depended on ActiveX control, whose security flaws have been known for more than a decade. The good news is that this is...
Acquisitions - Winners and Losers on Dec 10, 2019
Most major manufacturers have been acquired over the last decade. But which have been good deals or not? In this report, we analyze the...
IP Camera Installability Shootout 2019 - Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision, Uniview, Vivotek on Dec 09, 2019
What are the best and worst cameras to install? Which manufacturers make it the hardest or easiest to install their cameras? We tested 35 total...