IndigoVision Takeover Talks Terminated

Author: John Honovich, Published on Jan 30, 2012

A wild two month period for IndigoVision may be at an end. Recently, we reported that IndigoVision's CEO 'resigned' and then led an effort to take back the company. Now, as the parties have announced those talks have terminated, we look at the aftermath and their recent financial results.

Let's start with an update on the most recent events:

  • IndigoVision's stock price has gyrated wildly, dropping about 70% from February to October of 2011 (down to 165p per share) before doubling over the next three months since the acquisition negotiations started. Overall the stock is still down over 20% from its peak in the beginning of 2011 - now at 330p per share.
  • The Financial Times reports that the former CEO's initial bid a few months back was up to 265p while the Scotsman claims that the most recent bid was 'close to 400p' per share (this claim is unsubstainted and unconfirmed).
  • IndigoVision's stock price is now ~$40 Million USD compared to annual revenue of ~$45 Million USD. That puts them at a price to sales ratio of slightly less than 1, a ratio in line with the low growth company that IndigoVision has recently been.
  • The company disclosed it spent ~$500,000 USD direct costs on the 'battle' which is about 1% of annual revenue. Obviously, this does not reflect the overall disruption and negative publicity such an event caused.

The company also provided guidance on its last 6 months financial performance with revenue growth flat but appreciable gross and net margin growth (e.g., "sales are expected to be a little below the record levels achieved in the corresponding period last year" and "Operating profits ... are expected to exceed £1.5m, before exceptional items, comfortably ahead of last year's first half").

Where Now?

The good news is that the stock price has rebonded significantly and that the hostilities are over for now. The bad news is that revenue is still flat to down year over year. Things to watch:

  • If the stock price drops again, will this motivate the former CEO to try again to takeover the company?
  • Can IndigoVision get revenue growing to match the 25-35% rate of its main competitors?
  • What new products or approach will IndigoVision introduce to reinvigorate growth?

1 report cite this report:

IndigoVision Profile - Going Head-To-Head Against Milestone, Genetec on Oct 12, 2016
Cameras are commodities, the money is in VMS. This is the new philosophy of IndigoVision, long known as a closed end-to-end systems provider. The...
Comments : PRO Members only. Login. or Join.

Related Reports on IR

May 2018 Camera Course on Apr 20, 2018
Save $50 on early registration until this Thursday, the 26th. Register now (save $50) for the Spring 2018 Camera Course This is the only...
Best and Worst ISC West 2018 on Apr 16, 2018
ISC West 2018 had strong attendance, modest overall new products, and a surge in Artificial Intelligence marketing. First, here are 20+...
Axis Launches Mini Concealed IR PTZ on Apr 11, 2018
Axis has been a laggard in releasing IR PTZs. While the company released a laser focus PTZ (the Q6155-E tested) until now Axis has had no PTZs with...
Axis Launches ~$100 HD Camera on Apr 11, 2018
Chinese manufacturers, led by Hikvision, have come to dominate the low end of the Western market, driven by ~$100 cameras. While Axis has...
Axis Launches First Stereographic Panoramic Camera on Apr 05, 2018
Fisheye panoramics have not had much innovation in the past few years, with their multi-imager cousins getting most of the advances, e.g.,...
Camera Form Factor Guide on Mar 16, 2018
When selecting surveillance cameras, users may choose from a number of different form factors, each with its own unique strengths and weaknesses,...
IPVM Camera Calculator User Manual / Guide on Mar 09, 2018
Learn how to use the IPVM Camera Calculator. The guide below includes instructions, images, gifs, and videos demonstrating and explaining the...
Next Gen 5MP / 6MP Camera Shootout (Axis vs Dahua vs Hanwha vs Hikvision) on Feb 28, 2018
Many manufacturers have released new generation 5MP / 6MP cameras that tout super low light, WDR and other features historically typical in 1080p...
Hikvision 6MP Camera Tested (DS-2CD4565-IZH) on Feb 27, 2018
In the next installment of our ongoing testing of 5MP/6MP cameras, we test the Hikvision DS-2CD4565F-IZH, a 'Smart Series' vandal dome combining...
US Army Base Specifies 70+ Outdated Hikvision Cameras (Cancelled) on Feb 22, 2018
A US Army base has specified 70+ Hikvision IP cameras, a month after the WSJ reported a different Army base removed Hikvision IP cameras. While...

Most Recent Industry Reports

May 2018 Camera Course on Apr 20, 2018
Save $50 on early registration until this Thursday, the 26th. Register now (save $50) for the Spring 2018 Camera Course This is the only...
Global Real-Time Video Surveillance - EarthNow on Apr 20, 2018
A new company, EarthNow, with backing from Bill Gates, Airbus and more, is claiming that: Users will be able to see places on Earth with a delay...
Dedicated Vs Converged Access Control Networks (Statistics) on Apr 20, 2018
Running one's access control system on a converged network, with one's computers and phones, can save money. On the other hand, hand, doing so can...
April 2018 IP Networking Course on Apr 19, 2018
This is the last chance to register for our IP Networking course. Register now. NEW - 2 sessions per class, 'day' and 'night' to give you double...
Rare Video Surveillance Fundraising - Verkada $15 Million on Apr 19, 2018
Fundraising in video surveillance (and the broader physical security market) has been poor recently. Highlights are few and far in between...
'Best In Show' Fails on Apr 19, 2018
ISC West's "Best In Show" has failed. For more than a decade, it has become increasingly irrelevant as the selections exhibit a cartoon level...
Security Camera Cleaning Frequency Statistics on Apr 18, 2018
150+ integrators told IPVM how often they clean cameras on customer's sites and why.  Inside we examine their answers and break down feedback...
Worst Access Control 2018 on Apr 18, 2018
Three access control providers stood out as providing the most problems for integrators. In this report, we analyze the answers to: "In the...
Axis VMD4 Analytics Tested on Apr 17, 2018
Axis is now on its 4th generation of video motion detection (VMD), which Axis calls "a free video analytics application." In this generation, Axis...
Arecont CEO And President Resign on Apr 17, 2018
This is good news for Arecont. Arecont's problems have been well known for years (e.g., most recently Worst Camera Manufacturers 2018 and starting...

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