IndigoVision Takeover Talks Terminated

By: 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 [link no longer available], 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 [link no longer available] 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 [link no longer available] 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...
Comments : Members only. Login. or Join.

Related Reports

Dahua Revenue Plunges, 3 Execs Resign on Apr 29, 2020
Dahua's sales dropped by 19.47% in the first quarter of 2020 amid the...
2020 Mid Year Video Surveillance Industry Guide on Jul 27, 2020
The first half of 2020 has been shocking, for the world generally, and for...
PSIM CNL Acquired By Everbridge on Mar 09, 2020
The end has finally come for CNL. Despite for years saying they would...
ISC West 2020 Cancelled Again, Rescheduled For October 2020 on Apr 09, 2020
ISC West March 2020 was canceled. Now ISC West July 2020 has been...
Motorola / Avigilon Drops ISC West on Feb 26, 2020
Motorola Solutions has pulled out of ISC West 2020 effective immediately,...
Dahua CEO Is Out on Feb 28, 2020
Dahua CEO Li Ke has resigned less than 3 years after he was brought in from...
Convergint Outlook Turns Negative on Apr 16, 2020
Convergint's outlook has turned negative, according to bond rater Moody's,...
Remove Dahua and Hikvision Equipment "Immediately" Or Else Banned From US Government Contracts on Jul 10, 2020
The US government has directed contractors to remove covered equipment, such...
Milestone CEO Resigns on Mar 11, 2020
Milestone's CEO has resigned, after 17 years on the job but there is no...
ISC West 2020 Finally Cancelled on Jun 25, 2020
ISC West has now been cancelled for the third time, now for all of...
Milestone Drops ISC West on Mar 06, 2020
Milestone has dropped ISC West, joining a long list of companies to cancel...
Genetec Drops Support for Dahua and Hikvision on Jun 01, 2020
Genetec has dropped support for Dahua and Hikvision, citing US blacklisting...
Worsen: Integrators Hit Even Harder By Coronavirus on Mar 30, 2020
Integrator's problems have worsened over the past 2 weeks, according to new...
JCI Coronavirus Cuts on Mar 31, 2020
JCI has made coronavirus cuts, the company told employees in an email that...
Bosch Dropping Dahua on Feb 13, 2020
Bosch has confirmed to IPVM that it is in the process of dropping Dahua, over...

Recent Reports

Video Analytics Online Show September 2020 Opened - Axis, Avigilon, Bosch, BriefCam, Genetec, Milestone + 30 More on Aug 12, 2020
IPVM's sixth online show will feature 35+ Video Analytics companies...
The German Company Powering Many China Temperature Tablets (Heimann) on Aug 12, 2020
Many fever tablet suppliers market German-made Heimann thermal sensors while...
Salesforce Drops Dahua and Hikvision on Aug 12, 2020
Salesforce has dropped Dahua and Hikvision as customers, forcing the two mega...
Access Control Course Fall 2020 - Register Now - Save $50 Last Chance on Aug 12, 2020
IPVM offers the most comprehensive access control course in the...
Genetec CEO Declares "We Don't Negotiate Payment With Patent Trolls" on Aug 11, 2020
Are patent trolls like terrorists? Genetec's CEO is coming out strongly...
Hanwha AI Analytics Camera Tested on Aug 11, 2020
Hanwha has released their Wisenet P AI camera, adding person and vehicle...
Alabama Schools Million Dollar Hikvision Fever Camera Deal on Aug 11, 2020
The Baldwin County, Alabama public schools purchased a $1 million, 144-camera...
Dahua Taunts Australian Government, Continues To Sell Illegal Fever Cameras on Aug 10, 2020
Dahua is effectively taunting the Australian government by continuing to sell...
HID Releases VertX Replacement Aero on Aug 10, 2020
HID is replacing two established and broadly supported types of access...
NDAA Compliant Video Surveillance Whitelist on Aug 10, 2020
This report aggregates video surveillance products that manufacturers have...
Telpo China Temperature Tablets Tested on Aug 10, 2020
The provider for overseas companies ranging from Canon Singapore to US'...
Dangerous Hikvision Fever Camera Showcased by Chilean City on Aug 07, 2020
Deploying a fever camera outdoors, in the rain, with no black body, is...
"Grand Slam" For Pelco's PE Firm, A Risk For Motorola on Aug 07, 2020
The word "Pelco" and "grand slam" have not been said together for many years....
FLIR Stock Falls, Admits 'Decelerating' Demand For Temperature Screening on Aug 07, 2020
Is the boom going to bust for temperature screening? FLIR disappointed...
VSaaS Will Hurt Integrators on Aug 06, 2020
VSaaS will hurt integrators, there is no question about that. How much...