Fail / Fail: The IQinVision - Vicon Merger

Author: John Honovich, Published on Mar 31, 2014

One was a leader 20 years ago. The other a decade. Both have fallen far in recent years.

The solution? Merge.

****** ****** ******** ***** *** ***** ** ***************************** ** *****.

** **** ****, ** ***** **** ***** **********, ********* *** future *** *** ******** *********.

Financial *****

***** *** ****** ** ****************************** **** *** **% ** *** ******** *******, **** * sad ****** ********* ** ~$** ******* ***(*.*., ****'* **.*% **** **** ********'* $*.* *******).

*** ********* ****** ******** **** ******* ** $** ******* ***. Given *****'***** ********** $**.* *******, **** **** **********'* ** $**.* *******.

***** ***** ** ***** ***** ** ******** ** ****** * / * ($** ******* ****** *** / $** ******* *******). A ******** ******* ** **** ******** *** * ***** ** 1 ** * ***** ****** ********* *** ***** *:* ** even *:*. **** ***** *** ****** *** ****** ***** ** their ******* ** **** *** ******** *******.

*************, **** ******* *** ******* ** ***** ****** ** **** than $** *******, **** *********** *** *******'* ********** ******* *** valuation.

Merger *****

**** ****** *** ******** ********* *** ****** *****.

*************/ ******

***** *** ********* **** *********** ****** *** *****. *** ********, in ****, *** ******* *** ** ********* **** ** $* million.

************* *** *** ********** ** **** **** ******* *** **** over *** **** *** *****, ******** **** *** ******** ******** to ****** *.***, ******* ******* ********** *******, ** ***** **** ***** *********.

**** ********* ******* ** **** *******. *** ********,******** ** *** ** **** **** $** ******* ****** *******, had ***** ** ****** $** ********* ****.

******

*** ****** *** **** **** *** ***** *** *****. ***************** ***** ******* ** ** **** ** *** **** ** **** **** Vicon **** *** **** *******.

*** ******** ** ***************** ****** ****** *********** *** ********** **** *** ******* *****. *** *******, ******'* ************ ******** *****,**************** * ******** ***** ******* **% ************* *** ** *** ****** ** *%. ***** ** ***** hear ****** *** **********, **** ******** ***** ****** ************.

** *** ***** ****, *** ** ****** ******** *** ****** a *** **** *********** ***** **********'* ***** * ** * years ***, *** **** **** **** * *** ** ***** key ****** ** ****.

*************, ** ** * ************* ****** ** * **** ****** beginning. ********, **** ** * **** ****** ** *******.

******

***** ** ** **** ** ******* *** ******** ******* **** regain ***** ****** ***** ** ******** *****, ***** ** ******, primarily ******* *** *******'* ********* ** ******** ***.

** *** ******* ***** ****** ********* ******, ******* ** *** point ***** ** ********* * ****** ****** **** ******** ***** to ***** ******* ******** $** *******, ***** ****** ********* ***** double ** ******.

Comments (16)

Oh, hey, I remember Vicon.

Oh, and Vicon is looking for a new CEO. So if you want a challenge, there's that...

The valuation for Vicon alone is $15.9 million according to its stock price today. I don't understand why the valuation for the two companies combined are only about 15 million.

Fisher, good question.

As of the time of this comment, there are 4.5 million shares outstanding, trading at $3.52 for a market capitalization of $15.9 million USD.

As of the beginning of this year, Vicon has ~$8 million USD cash in the bank. They are going to issue a one time dividend of 55 cents to existing shareholders (4.5 million shares). That will be a cash outflow of $2.5 million.

IQinVision shareholders will get 4.5 million new Vicon shares, increasing total Vicon shares to 9 million. There is no other cash changing hands.

The news has been public for the past day (and known by insiders for some time). However, the stock price was unchanged today and has been in the same range for the past month.

When those shares are issued (doubling), it will dilute current Vicon shareholders. The valuation will depend what happens when those extra shares are issued.

The valuation will depend what happens when those extra shares are issued.

To the degree that this is viewed as a 'done deal', the current valuation already has already 'priced in' the announced future issuance; Likewise the actual issuance of shares will have no effect at that time, agree?

That's my interpretation but I could be wrong.

Either way, best case scenario, the two combined are worth $30 million, which is still dreadful...

Two sad stories about once innovative companies.

What happened at Vicon? How did the end up where they are today?

Is it because they were not prepared for IP. Because their solution doesn't work or buggy software or ???

In fairness, many, if not most of the leaders of the past era have struggled in this one. Pelco, AD, Interlogix, Dedicated Micros, etc.

Vicon's fall has been more public primarily because it is an independent publicly traded company so it's easy to see the specific decline.

It's not all doom and gloom. Maybe I'll be able to finally dump my nearly worthless IQinVision stock I've been forced to hold on to for years.

In my humble opinion, if there are funds available a CEO with a strong vision could still create a recovery once the companies have been stabilized. Never say never - it's a dynamic marketplace.

Hate to sound like a cynic, but it seems these days when there are funds available CEO's usually worry first about bonuses and golden parachutes. A good indicator of their intention would be to look and see if they are buying or selling shares themlseves.

I agree Luis, many CEOs put their own needs above those of the company and shareholders. However this sort of job has risk for all parties including the new CEO. His first responsibility after obtaining adequate compensation and incentives for himself should be to preserve and then grow shareholder value; to ensure that people in the company are motivated to succeed and in essence it's his job to remove barriers to their success - obtain capital, intellectual resources and have a strong vision. Without success in capital markets as well as technical markets there is little hope for any company. Perhaps 'realist' rather than 'cynic' is a better description of your position :)

It will be interesting to see how this all shakes out, and what the end result will be

Any idea yet how this is fairing a year later?

Work in progress. They hired a new CEO 6 months ago and he is implementing a lot of changes. Still needs more time to get a clear sense of how well it will work.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Hikvision PanoVu Mini Tested (Multi-imager + PTZ For ~$500) on Aug 07, 2018
Hikvision has released their first PanoVu Mini multi imager, the PanoVu DS-2PT3326IZ-DE3, with four 1080p imagers, including a PTZ and integrated...
Panasonic 9MP Panoramic Fisheye Tested (WV-X4571L) on Aug 02, 2018
Panasonic has released their latest fisheye camera, the WV-X4571L, with 12MP sensor and 9MP resolution, claiming "extreme image quality" under...
Uniview Super Low Cost 4MP Tested on Jul 25, 2018
Even lower cost than Dahua and Hikvision, China's self-proclaimed 3rd place company, Uniview / UNV, is offering aggressive pricing including for...
Avigilon "Self-Learning" Analytics And VMD Tested on Jul 23, 2018
Avigilon is a popular choice for video analytics, offering "self-learning" analytics built into their cameras as well as appliances. We tested...
Axis ~$100 Camera Tested on Jul 17, 2018
Axis has released their lowest cost camera ever, the Companion Eye Mini L, setting their sights on a market dominated by Hikvision and Dahua. Can...
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...
Arlo IPO Filing Reveals Key Financial and Competitive Details on Jul 09, 2018
Arlo is going to IPO at a projected valuation greater than Axis. Now, Arlo has released their 175-page Form S1 Registration Statement for its...
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...
Digital Watchdog Low Cost 4MP Camera Tested on Jul 02, 2018
Based on member 4MP testing requests, we bought and tested Digital Watchdog's low-cost 4MP DWC-MTT4Wi to see how it performs in real world scenes,...

Most Recent Industry Reports

2Gig Gun Lock / Motion Detector Tested on Aug 17, 2018
Safer guns for families and an opportunity for security dealers to sell more services? That is the aim of Nortek's 2GIG 'Gun Motion Detector'...
Video Analytics Integration Guide on Aug 16, 2018
Video analytics is hot again (at least conceptually) but integrating video analytics with VMSes can be challenging. This is especially significant...
Hikvision IP Camera Critical Vulnerability 2018 Disclosed on Aug 16, 2018
The same day that the US government passed a prohibition on Hikvision cameras, Hikvision disclosed a critical vulnerability for its IP...
ISS VMS / Video Analytics Company Profile on Aug 16, 2018
Who is ISS? In the past few months, they had one of the craziest ISC West promo items in years. Then, they hired industry veteran and ex-Dahua...
Chinese OEM Avycon Gets ADI Push on Aug 15, 2018
Who is Avycon? An American company? A Korean company? A couple of guys relabelling Chinese products? The latter is the best explanation. While...
Backboxes for Video Surveillance Tutorial on Aug 15, 2018
Backboxes are a necessity in surveillance, whether for managing cable whips, recessing cameras, adding wireless radios. But it can be confusing to...
Genetec Stratocast / Comcast 'Motion Insights' Examined on Aug 15, 2018
Comcast recently announced "SmartOffice Motion Insights", an extension to their Genetec OEMed cloud video service (covered by IPVM here). This...
SimpliSafe Violating California, Florida, and Texas Licensing Laws on Aug 14, 2018
IPVM has verified that DIY security system provider SimpliSafe, founded in 2006 and acquired in June of 2018 at a billion dollar valuation, is...
Ban of Dahua and Hikvision Is Now US Gov Law on Aug 13, 2018
The US President has signed the 2019 NDAA into law, banning the use of Dahua and Hikvision (and their OEMs) for the US government, for US...
Cut Milestone Licensing Costs 80% By Using Hikvision and Dahua NVRs (Tested) on Aug 13, 2018
Enterprise VMS licensing can be quite expensive, with $200 or more per channel common, meaning a 100 camera system can cost $20,000 in VMS...

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