March Sets Up Poison Pill, Impact on Future Acquistion

By: 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...
Comments : Members only. Login. or Join.

Related Reports

Disaster Relief Loans For Integrators Examined on Mar 23, 2020
Integrators are being impacted by the coronavirus. Now, the US government is...
IPVM To Disrupt Trade Shows With Launch of Online Shows on Mar 17, 2020
IPVM is launching Online Shows, a series of ongoing events that allow sellers...
Canon Company Milestone Takes $1+ Million PPP Money on Jul 16, 2020
Milestone, a Canon company, took $1 million+ in PPP loans, despite being part...
ADI Adds Lockers on Mar 20, 2020
Locker delivery is a growing trend, spurred by Amazon. Now, ADI has added...
Cisco Meraki Unlocks IP Cameras With RTSP Tested on Jul 06, 2020
Meraki opened up its cameras to 3rd party NVRs/VMSes by offering RTSP...
Disruptive Free Lead Generation Added To IPVM on May 15, 2020
IPVM has added lead generation for sellers, for free, disrupting the...
Convergint Coronavirus Cuts on Mar 25, 2020
One of the world's largest security integrators, Convergint, has made a major...
JCI / Tyco Security Products Layoffs on Jun 05, 2020
Johnson Controls / Tyco Security Products has confirmed COVID-19 related...
Pivot3 Mass Layoffs on Mar 27, 2020
Pivot3 has conducted mass layoffs, the culmination of grand hopes, a quarter...
Help Security End Users Facing Coronavirus Improve Remote Access on Mar 24, 2020
Many end-users and integrators are struggling with the impact of coronavirus...
Face Shields Impact On Temperature Measurement And Mask Detection on Jul 27, 2020
First, the use of face masks, and now, plastic face shields are rising...
Opgal ThermApp MD Thermal Screening System on Apr 21, 2020
Israeli thermal provider Opgal claims they were first on the market detecting...
Proxy Raises $42 Million on Mar 17, 2020
Startup Proxy has raised $42 million, an astounding amount for the access...
Hikvision Fever Screening Thermal Solutions Examined on Apr 13, 2020
Hikvision is marketing "safer, faster, smarter" with their Fever Screening...
Motorola Acquires IndigoVision on Mar 17, 2020
Motorola owns Avigilon, an end-to-end video surveillance solution. Now,...

Recent Reports

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...
Dogs For Coronavirus Screening Examined on Aug 06, 2020
While thermal temperature screening is the surveillance industry's most...
ADT Slides Back, Disappointing Results, Poor Commercial Performance on Aug 06, 2020
While ADT had an incredible start to the week, driven by the Google...
AHJ / Authority Having Jurisdiction Tutorial on Aug 06, 2020
One of the most powerful yet often underappreciated characters in all of the...
SIA Coaches Sellers on NDAA 889B Blacklist Workarounds on Aug 05, 2020
Last month SIA demanded that NDAA 899B "must be delayed". Now that they have...
ADI Returns To Growth, Back To 'Pre-COVID Levels' on Aug 05, 2020
While ADI was hit hard in April, with revenue declining 21%, the company's...
Exposing Fever Tablet Suppliers and 40+ Relabelers on Aug 05, 2020
IPVM has found 40+ USA and EU companies relabeling fever tablets designed,...
Directory of 201 "Fever" Camera Suppliers on Aug 04, 2020
This directory provides a list of "Fever" scanning thermal camera providers...
Face Masks Increase Face Recognition Errors Says NIST on Aug 04, 2020
COVID-19 has led to widespread facemask use, which as IPVM testing has shown...
Dahua Loses Australian Medical Device Approval on Aug 04, 2020
Dahua has cancelled its medical device registration after "discussions" with...
Google Invests in ADT, ADT Stock Soars on Aug 03, 2020
Google has announced a $450 million investment in the Florida-based security...