Motorola Paid $297 Million For Openpath

By John Honovich, Published Aug 09, 2021, 09:46am EDT (Info+)

Motorola Solutions has disclosed it paid $297 million for Openpath, the 5-year old access control startup, it announced acquiring last month.

IPVM Image

$297 million is a significant amount for a company with such a low revenue base but investors are quite bullish on the potential of SaaS physical security.

In this note, we compare the valuation Motorola paid for Openpath to Motorola's other physical security acquisitions - Avigilon, IndigoVision, and Pelco as well as valuations for other access control companies including Latch, S2, and Avigilon's acquisition of RedCloud.

** ********'* ** ******** ****, ************* **** ****:

******** ********, * ****** ** *****-***** access ******* ********* *** $*** *******

********'* *** **********:

** ********, **'* *** **********. *** the ********* ** *** ****, **** year, *** **** ******* ******, **'* probably ***** $* ******* ** *********** revenue ** *** ****** **** ** this ****, *** **** **** ******, and **'* * ****** ********. *** having **** ****, *'* ***** ******* by **** ***********. * ***** **'* leading **** ****** ***** ***** *********** authentication, ****** *******. * **** *** products, * **** *** ************, * love *** ********** **** *** *** leadership ****.

******** ******** ** ******* ** **** any ******* ***** *** ***** ** the **** ** ********'* **********.

Revenue **** ~$** ******* *********

**** ********* **** ******** **** ******** ~$10 ******* ** ******* **** ****, based ** ********'* ********* ** "***** $5 ******* ** *********** *******", ** the **** * ******.

Valuation - *** **** *******

******** **** ~** ***** **** ********'* 2021 ******* ** ******** ** **. Compared ** *********** ******** ******** ********* (generally * ** ** *******), **** is ** ********* **** *********. *******, given *** ****** *** ****** ********* of ** *****-***** **** *******, **** is *** *** ** ****.

Burn **** - $** ** $** ******* *********

**** ********* **** ********'* **** **** for **** **** ** ** *** range ** $** ** $** *******, based ** ********'* ******* ***** ******** being * ****** ******** (******** *** ~170 ******* ****** *********** ********** ** a ****** ******* ~$* ******* *** the **** * ******).

**** **** ***** *** *********** *** early-stage **** ********* *** ** ***** expect ******** ** ******** ** ** unprofitable *** **** ***** ** ****, as **** ***** *** ********.

Comparisons ** ***** ******** ********* ************

******** ** ************* ********* **** ********'* other ******** ******** ************, ****** * much ****** ********* *** * *** earlier ***** *******. *** *******:

  • ****:******** *********** ~$* *******, **** **** ******* of ~$*** ******* *** * *.** prices ** ***** *********. ******** *** ~15 ***** *** **** ********.
  • ****:******** ******** $*** *******, **** **** ******* of ~$*** ** $*** ******* *** a *.** ****** ** ***** *********. Pelco ** **+ ***** ***.
  • ****:******** *************** $** *******, **** **** ******* of ~$** ******* *** * *.* prices ** ***** *********. ************ ** 20+ ***** ***.

***** ********'* ******* **, ** ***, the ******** ** ***** * ************, Openpath *** **** ****** ****** ********* and * **** ********** ** ********* SaaS ******** *****.

Comparisons ** ***** ****** ******* *********

*******, ******** ** **** ****** ******* providers, ********'* ********* ** ********** ******.

*** *******, *** ******* ****** ******* deal ** *** **** **** ******** *******, ** ***** ** ******** * 55x ****** ** ***** ********* ** ~$18 ******* ** **** ******* ** going ****** ** **** **** * billion *******.

******* ******* ** ****-********** ***** ************* *** ******** **** ***** ** ***** *********, with **** $* ******* ** **** sales ****** * $*+ ******* *********. Supporting **** ********* ** ******** ****** investing $** ******* ** *****.

***** ** ***** ***********, *** ***** argue **** ******** ******** * ******** bargain *** ********** ********. ** *** other ****, *********** ****** ****** ***** whether *** ***** *** ***** **** valuations *** ***********.

***********, ******** ** *********** ****** ******* valuations, ********'* ********* ** ***** ****. For *******,** *** ******** ** *** ** 2018. ***** *** ********* ***** ******** disclosed *****, **'* ******* *** ********* at **** ** ******** ***** *** purchase ***** **** ********* ** ******** of ******** ** ******* ******** **********. On *** ******** **** *** **, they *** ****** *************, ***** ******** lacks *** ********'* ****** ****** ********* and ******-** **** ****** ********* *** greater ****-**** ********* ******.

*******,******** ******** *********** $** ******* ** **** ****** a *** ******* ** ******* ** that ****. ******** ***** ** ******** to ***** **** ****** ******* *** it ***** ****** * *********** **** of ***** ******** ** * *********** competitor ** *** ******.

Willingness ** ***** *******

**** **** ** ******** ***** *** companies *********** ** ***** ******* ** become * ******** ********** ** ******** security. ***** ************ *** ***** ******* Motorola ** **** ****** ******** *** customer *****, *** ********** ** ******** is ******* *** *** **** ****-**** potential.

******** ********* *** **** ** *****, as *** ******* ********* $*.* ******* in********* **** **** ** **** (*** results), ** **** * ~$*** ******* deal **** ** *** ********* **** the ******* **** ** ********** ** fund.

Worth **? ****** ******* **********

************, ****** ******* ********* *** *** command **** **********. **** **** ** interesting ** ******* ** ******* **** newer ********** ** ******-** **** ********* can ****** *** ****** ********* ** access ******* ******** *** *** **** will ******* ******* ******* **********.

Vote / ****

Comments (17)

*** ** **** ********* *** **** Allegion **** *** ******? ****** ******** prior ** *********** *** ********* ****** 6-8 *******?

**** * ** ********* ***** ** that ******** ***** ******* ****** ******* (not ********) ** ******** ***** ****** software *** *** *****. ** ***** to ** **** ******** ***** ***** to **** ******* ** **** ****, but *** **** ** **** ******* when ******* ***** ******* *** ******* company ** ****** *** ** ******* behemoth *** ******* ** ******* *** market **** ***-****/***-****** ****** ******* ******** and ****** ***** ** ****** ***** and ****** ****** ** *** *****? How ***** ********'* ************* ** ******** by ****, ********** ** ***** ** the **** **** ***** **** ********** be **** ********** **** ******* ****** along ** **** ****** ****** ** mature *** ********.

* ****** **** ** *** ***** end ** *** ******** ** ******** commenter ******* **** ***, *** ******** that ******** ****** *** ** **** at **** ****** *** ******* ***** on *** ***. * ******* ******** has *** **** ******* ****** ** pivot ** **** ******** ***** ** they **** **.

**** ******* ********* ** ****** ****** control **** ****** ******** ** ******* in **** *****, *.*. *** ****** on ******* ******** ***** ** ***** to **** ** ***? *** ***** any *******'* ** *** *** ***** in ****** *******? * ******'* ******** Verkada ** ** * ******** ****** in ****** ******* ** **** *****.

Agree
Disagree
Informative: 2
Unhelpful
Funny

* **** ** * ********** ****** control ******* **** ** *** **** for $*** *******!! ***!

Agree
Disagree
Informative: 1
Unhelpful
Funny: 10

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

Agree
Disagree
Informative
Unhelpful
Funny

****** .... *** *** ***** *********** for ****** **** ***** ***** *****-**** entrants ** ****** ******* *** ****; are **** ***** ***********?

Agree
Disagree
Informative
Unhelpful
Funny

***********, * ***** *** ***, **********? If *** ***** ** ****** ** $80 ******* ** ** ** ** hard ** ***** * ********** ***** in **** ****** ** **** **** the ******** **** **** ****! ** you *** ****** ***** ** ** existing ****** ***** **** ** ******* profitable *** ***** ********* ****** * model **** **** ******* ********** ***** results. ** **** **** *** ***** sales ****** ** **** ** *** first * ***** *** **** ***** more **** *.* ***** **** **** so *** **** ****.

Agree
Disagree
Informative: 3
Unhelpful
Funny

** **** * ***** ** ****** vs ****, **** ** ** ******* from*****'* **** ******, **** ****** ** **** **** $300 ******* ****** ******** ** **** a ****** ** ****:

IPVM Image

******* * ****** ** **** ******* me ** ********** *** * ***'* think **'* ************ ** ****** ** the *** ** *** ****** ***** businesses ** ** **** ********** ** they ******.

Agree
Disagree
Informative: 2
Unhelpful
Funny

*** ***** ** *** ****, ********’* gonna **** *** **** **** ***** insanely ****** ************.

** ***** **** ********** ** **** these ********* **** ********* ** ******* it? *** ** **** **** ********* special *****?

*** ****** ******* - ***************…

*** ***** ***** **** ** **** 300 *******, *** ***** *** * company *** ****, ****** *** **** they’re *****, *** **** ** ** it ******.

Agree: 2
Disagree
Informative
Unhelpful
Funny

** ***** **** ********** ** **** these ********* **** ********* ** ******* it? *** ** **** **** ********* special *****?

**** **** **********, *** ********** ** primarily *** *** ******** *****. ********* think ***** ********* **** ** ******, highly **********.

**** ** *******, ****** *** ******** legal ****** *****, **'* ********** ** believe **** **** **** ********** ** extremely ********** ******* ****** **** ** paying ~$*** *** ****** *** **** forever. ****'* * *** ****** ******** for ********* **** ******* *** ******* every **** *** *** **** *****.

Agree: 1
Disagree
Informative
Unhelpful
Funny

**** **** **********, *** ********** ** primarily *** *** ******** *****. ********* think ***** ********* **** ** ******, highly **********.

**, *** **** ***** * ******** from **** ******** * *** ******** with **** ***** *** **** *** million?

****, *** *** * *** **** start, *** ***’** *** **** ****** that **** *********/*****.

** ***** ** ******* **** *** market, ****** ** **** *****.

****’* *** *******, **** ***** *** do, *** ** *****?

Agree
Disagree
Informative
Unhelpful
Funny

**, *** **** ***** * ******** from **** ******** * *** ******** with **** ***** *** **** *** million?

**'* * *** ** ***** ********. For **** ***** *************, ** ** less *****/********* ** *** ********* (**** at * *******) **** *** ** do ** ********, **** *******, ** taking ** **** **** *** *********** has ****, ***.

**** ***** ***** **** *** ** be * *** **** *** **'* pretty ****** ***** *** ***** ************* to *** ******** **** **** ***** traction / ******** * **** *******, rather **** ***** ** **** ******* themselves.

Agree: 1
Disagree
Informative
Unhelpful
Funny

**** **** ******** ****** ********* *** saas ** ***** **** ** **** verkada’s ****** ********. ** ******* ** a ****** ********* *** ***** ***** security ******* **** **** **** ****** do **** ***** **** **** * much **** ****** ******* ***** ***** position ****** ****** ****. * ***’* think **’* ********** *** ***** **** are *** **** ***** ***** *********** is ********* ** *** ******.

Agree: 3
Disagree
Informative: 1
Unhelpful
Funny

** ******* ******** **** ****** **** the **** *** ************!

Agree
Disagree
Informative
Unhelpful
Funny

*** ******* ** *** ********* ** the ****? ***** **. ****?

Agree
Disagree
Informative
Unhelpful
Funny

******, **** ** *** *** ******* or ******** ************* ** **** **** has ********* ****.

*******, ***** **** **** **** ******** details ***** *** ***** ** *** deal** *** ** **** *** ******:

*** ******* ****** ********** ***** ** a **** ***** ** $********* ** ******* *** ********* **** will ** ******** **** ** ******* service ****** ******* *****. *** *********** **** ******** *** potential *** *** ******* ** **** earn-out ******** ***** ** ********'* *********** of ******* ********* ******* **** ******* 1, **** ******* ******** **, ****.

**** **** *** ** *** **** and ********* ******** *** ******** ********** team ** ****, ***.

* ** *** **** ** ***** vs **** **** **** * *** difference ** **** **** ***** ********'* stock ** ****** ****** *** *** been ******** ********** ** *** **** 5 ***** **** *** *** ***** of *** ******** ***** ** *** now ********* *************:

IPVM Image

Agree
Disagree
Informative: 1
Unhelpful
Funny

* ****** ** ***** **** ***** bidders ******* ** *** *****. ******* know?

Agree
Disagree
Informative
Unhelpful
Funny

******, **** *** *** ******** ***, for ****, ***** **** **** **** a ****** ** ** ***** ******* to **** ******** **** * ***** would **** ******* ******* ********** ** even ******.

********* ********'* ***** **** ******** * combination ** ***** *** ********, *.*., Latch *** * ****** ********* *** for *** ********/***** **** ***** **** it ***** **** (**, *** **** hopefully **** ** **** ** *******).

Agree
Disagree
Informative
Unhelpful
Funny

** *** ******** **** ******** ******* invested $* *** ** ******** *** "future *********** *** *************" ** **** could **** **** ** *** ***. We *** * ******* **** ******** with ***** ******** **** ******** *** they **** ***** ******* ** *** me *** *********** ** ***** *** something *****.

Agree
Disagree
Informative
Unhelpful
Funny
Login to read this IPVM report.
Why do I need to log in?
IPVM conducts reporting, tutorials and software funded by subscriber's payments enabling us to offer the most independent, accurate and in-depth information.
Loading Related Reports