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

Hanwha Smaller Multi Imager Tested (PNM-9000VQ) on Feb 14, 2019
Hanwha's first repositionable multi imager PNM-9081VQ tested well, but was huge, over 12" wide and weighing in at over 10 pounds. Now, they have...
Bandwidth vs Low Light Shootout - Avigilon, Axis, Bosch, Dahua, Geovision, Hanwha, Hikvision, Uniview, Vivotek on Feb 08, 2019
Nighttime bandwidth spikes are a major concern in video surveillance, but do all manufacturers' cameras perform the same? Are some more consistent...
8MP HD Analog Tested (Dahua / Hikvision) on Jan 30, 2019
HD analog has promised higher resolution for years, but has lagged substantially behind for years. Now, both Dahua and Hikvision have started...
Verkada Cloud VMS/Cameras Tested on Jan 28, 2019
Verkada is arguably the most ambitious video surveillance startup in many years. The company is developing their own cameras, their own VMS, their...
Camera Course Winter 2019 - Last Chance on Jan 24, 2019
This is the last chance to register for the Winter 2019 Camera Course. This is the only independent surveillance camera course, based on in-depth...
Testing Bandwidth Vs. Low Light on Jan 16, 2019
Nighttime bandwidth spikes are a major concern in video surveillance. Many calculate bandwidth as a single 24/7 number, but bit rates vary...
Worst Products Tested In Past Year on Jan 09, 2019
IPVM has done over 100 tests in the past year. But which products performed the worst? Which ones should users be most aware of? In this report,...
2019 Video Surveillance Cameras Overview on Jan 07, 2019
Each year, IPVM summarizes the main advances and changes for video surveillance cameras, based on our industry-leading testing and...
IPVM Best New Products 2019 Opened - 70+ Entrants on Jan 07, 2019
The inaugural IPVM Best New Product Awards has been opened - the industry's first and only program where the awards are not pay-to-play and the...
ASCMA / Moni Problems Deepen, Lenders Terminate Support Agreement on Dec 28, 2018
Ascent Capital Group, aka ASCMA, currently branded Brinks Home Security, formerly known as Moni and Monitronics faces a troubling end to a rocky...

Most Recent Industry Reports

Casino Surveillance Pro Interview: James Lathrop on Feb 15, 2019
James Lathrop has been working in casinos for almost 25 years. During that time, he says he has held "just about every job you can do in the...
Hikvision 2018 Revenue Tops $7 Billion USD But Growth Slows To Low on Feb 15, 2019
Hikvision's annual revenue topped $7 billion for the first time in 2018, although growth slowed sharply. In this post, we analyze the latest...
Hanwha Smaller Multi Imager Tested (PNM-9000VQ) on Feb 14, 2019
Hanwha's first repositionable multi imager PNM-9081VQ tested well, but was huge, over 12" wide and weighing in at over 10 pounds. Now, they have...
ADT And 'The Defenders' Silent About Massive Complaints on Feb 14, 2019
ADT's largest dealer, "The Defenders" has been the subject of a massive number of complaints over many years and many forums, most recently a CBS...
Hikvision Chairman Praises United Front on Feb 14, 2019
Hikvision’s controlling shareholder held a meeting last month praising the United Front, a Communist Party organization known for its secretive...
Sales Turnover At Anyvision on Feb 13, 2019
Anyvision raised a $43 million Series A and according to their newest investor: what you need to do is push the gas pedal and build an...
Cisco Meraki Cloud VMS/Cameras Tested on Feb 13, 2019
Cisco Meraki says their cameras "bring Meraki magic to the enterprise video security world". According to Meraki, their magic is their management...
Uniview / UNV Favorability Results 2019 on Feb 12, 2019
Uniview / UNV, the self-proclaimed #3 China manufacturer, while starting late, has been working to make inroads internationally. In IPVM's 2019...
Nortek Mobile Access Reader BluePass Examined on Feb 12, 2019
Nortek's Linear access control division claims to make mobile credentials "more secure and easier to use than ever before" with their BluePass...
Solink Raises $12 Million - Company Profile on Feb 12, 2019
Most industry professionals have never heard of Solink, a company whose tagline is: It's time to revolutionize the way business uses...

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