March Sets Up Poison Pill, Impact on Future Acquistion

Author: John Honovich, Published on Jul 26, 2010

March Networks has set up a "Shareholder's Rights Plan," more commonly referred to as a "Poison Pill." Such plans/pills can provide protection or negotiation advantages if or when an acquisition occurs.

According to March, the plan "provide the board of directors of March Networks and the shareholders more time to consider fully any unsolicited take-over bid for the Corporation. It will also allow more time for the board of directors to pursue other alternatives to maximize shareholder value, if appropriate."

If an acquisition does not meet the plan's definition of a 'permitted bid', existing shareholders would gain the right to buy "shares at a 50 percent discount to the market price at the time." This would simultaneously increase the acquisition cost and benefit existing sharedholders.

March says there is no impending or even known interest in acquisition: "The rights plan has not been adopted in response to any specific proposal to acquire control of the Corporation, nor is the Corporation aware of any such intention."

On the other hand, March Networks is viewed by many we speak with as a prime target for acquisition:

  • March's current maket capitalization ($63 Million CAD) is substantially less than revenue ($86 Million CAD) - see financial summary
  • March's cash reservers (~$40 Million CAD) are close to its market capitalization ($63 Million CAD) - see balance sheet
  • March's stock is down 90% since 2006 ($38.75 per share in February 2006 vs. $3.62 July 2010)
  • Despite this, March's appliances are highly regarded for their performance and attractiveness to IT users
  • March acquired a solid IP video startup (Cieffe) in 2008 and now has a lineup of IP/MP cameras and VMS software to complement its appliances/recorders

Given its stock price, cash in bank and product lineup, it is quite plausible that the company could enjoy a strong turnaround.

Who would want to acquire March is an interesting question as well. Given the breadth of March's existing portfolio, we think an acquisition by a video surveillance incumbent (NICE, Verint, Honeywell, even Cisco) would be redundant with those companies existing products. However, March could make good sense for an IT company looking to enter the market leveraging March's existing portfolio (e.g., IBM, HP, etc.). That being said, our thoughts on potential acquirers is purely speculation.

UPDATE: Just 6 months later, March was acquired by Infinova

1 report cite this report:

Avigilon Poison Pill Preps For Sale on Jan 12, 2016
Avigilon soon may no longer be an independent company, but Avigilon's CEO is determined to control his own destiny. After 2 years of punishing...
Comments : PRO Members only. Login. or Join.

Related Reports on Acquisition

OpenALPR Acquired By Mysterious Novume on Mar 13, 2019
Startup OpenALPR has been acquired by Novume, a company virtually unknown in the industry. While there are many LPR providers (see our directory),...
Barnes Buchanan 2019: Despite 'Strange Narrative' Great Time To Be In Security on Feb 11, 2019
A "strange narrative" is being spun, said Michael Barnes at the 2019 Barnes Buchanan Conference. However, despite that narrative, it is a "great...
Exacq Favorability Results 2019 on Jan 17, 2019
Exacq favorability amongst integrators has declined sharply, in new IPVM statistics, compared to 2017 IPVM statistics for Exacq. Now, over 5 since...
Avigilon Favorability Results 2019 on Jan 15, 2019
Since IPVM's 2017 Avigilon favorability results, the company was acquired by Motorola and has shifted from being an aggressive startup to a more...
Motorola Acquires VaaS / Vigilant LPR on Jan 08, 2019
Less than a year after Motorola Solutions spent a billion to acquire Avigilon, the company has made another major acquisition spending nearly a...
CyberExtruder Face Recognition Profile on Jan 04, 2019
CyberExtruder offers 3D modeling face recognition software that they say provides quicker and more accurate matches than other 2D face recognition...
OnSSI Co-Founders Are Out on Jan 04, 2019
OnSSI's co-founders, Gadi Piran and Mulli Diamant, are out of the company just a week after they were acquired by Qognify. This breaks the common...
DirectView Aims To Be A Video Surveillance Power Like Tyco on Jan 02, 2019
DirectView is a publicly traded US company that tells IPVM that it has ambitions to be the next ADI, Anixter, or even Tyco. In this note, we share...
US Gov China Ban Rules Process, SIA Lobbies Against 'Blacklisting', For 'Risk-Based Protocol' on Dec 27, 2018
Details have emerged about when the rules implementing the federal ban on Hikvision, Dahua, Huawei and others will be made public for official...
Arecont Vision President Resigns, Ex-Pelco CTO Takes Over on Dec 24, 2018
Arecont Vision's President and long-term executive Raul Calderon is exiting the company being replaced by ex-Pelco CTO Shane Compton. In this...

Most Recent Industry Reports

Avigilon Launches 'Renewed Products Program' on Mar 19, 2019
There are lots of 'pre-owned' cars but pre-owned IP cameras? While such programs are common in other industries, in video surveillance, they are...
Hanwha Tax Evasion Probe, Camera Division Implicated on Mar 19, 2019
A Hanwha group subsidiary was raided as part of a tax evasion probe. While a Korean news media report listed the raided entity as 'Hanwha...
Genetec Security Center 5.8 Tested on Mar 19, 2019
Genetec has released Version 5.8. This comes after a wait of more than a year that caused frustrations for many Genetec partners. Our previous...
Retired Mercury President Returns As Open Options President on Mar 18, 2019
Open Options experienced major changes in 2018, including being acquired by ACRE and losing its President and General Manager, John Berman who...
Large US University End-User Video Surveillance Interview on Mar 18, 2019
Schools have become targets in modern days of active shooters and terrorist fears. The need for video and access security is high. Universities...
Hikvision Favorability Results 2019 on Mar 18, 2019
Hikvision favorability results declined significantly in IPVM's 2019 study of 200+ integrators. While in 2017 Hikvision's favorability was...
ONVIF Favorability Results 2019 on Mar 15, 2019
In the past decade, ONVIF has grown from a reaction to the outside Cisco-lead PSIA challenge, to being the de facto video surveillance standard...
Installation Course - Last Chance on Mar 14, 2019
This is the last chance to register for the March Installation course. This is a unique installation course in a market where little practical...
City Physical Security Manager Interview on Mar 14, 2019
This physical security pro is the Physical Security Manager for the City of Calgary. He is a criminologist by training with an ASIS CPP credential....
US Drafting Separate Rule for NDAA Dahua/Hikvision 'Blacklist' on Mar 14, 2019
The most debated provision of the NDAA ban of Dahua, Hikvision, Huawei, et al. is the so-called 'blacklist' provision which would ban any company...

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