Optelecom-NKF Acquired by TKH Group

By: John Honovich, Published on Nov 10, 2010

Optelecom-NKF, a specialist in the large scale surveillance products (including video over fiber) has announced that TKH Group will acquire them [link no longer available]. While the acquisition was at steep premium to the current market price, it represents a steep decline to the company's value from just a few years ago. Given the structural shift of the large scale surveillance market to IP networks, Optelecom-NKF struggled and revenue fell significantly.

At the purchase price of $2.45 USD per share, the total price is approximately $9 Million USD (see Optelecom's Google Finance profile). In 2008, the company's annual revenue was about $45 Million USD, falling to Q2 2010 revenue of $7 Million USD (an annual run rate of under $30 Million). The price to sales ratio is about .3 which is extremely low even for the physical security industry where a ratio of 1 is typical and 2+ is good.

Optelecom-NKF provided clear guidance in their most recent Q2 2010 results: "In the second quarter of 2010, sales of fiber optic products were down 35% to $4.0 million while IP video revenue increased 2% to $3.6 million. The Company planned for a market shift toward IP video products and invested in the development of new products in prior periods. However, the decline in fiber optic sales during the period was significantly more than the increase in IP video revenue leading to a decline in total revenue."

On the other hand, the company has recently released a broad range of H.264 HD ONVIF cameras [link no longer available] that may help them going forward.

The TKH group looks like a solid fit. They are a fairly large systems integrator/contractor specializing in telecom, building and industrial market, including a security solutions division. Optelecom is likely to benefit from access/promotion to TKH's customer/sales base. TKH's 2009 revenue was over $1 Billion USD (despite a significant decline from 2008).

1 report cite this report:

Investments & Acquisitions Directory 2011 on Dec 26, 2010
This directory provides a single source of information on funding and acquisitions in the video surveillance market. It is part of ourĀ Video...
Comments : PRO Members only. Login. or Join.

Related Reports

90+ Companies Profile Directory on Nov 05, 2019
While IPVM covers the largest companies in the industry regularly (like Axis, Dahua, Hikvision, etc.), IPVM strives to do a profile post on each...
Hikvision USA Fights LTS on Nov 04, 2019
Hikvision's USA subsidiary is fighting with LTS, having recently quietly dropped LTS as an authorized distributor amidst ongoing face-offs between...
Axis Cracks Down On Illicit Channel Sales on Nov 01, 2019
Axis has stepped up efforts to crack down on illicit channel sales according to various industry sources, though, Axis denies this. Online sales...
Struggling Arcules Changes Chief Revenue Officer on Oct 29, 2019
Canon / Milestone spinout Arcules has struggled, now changing their Chief Revenue Officer, just a year after he came on board. The issue is not...
nFlux AI Startup Profile on Oct 28, 2019
nFlux, an Amazon, Google, and Microsoft funded AI startup told IPVM their mission is to build the most intelligent video analytics platform in the...
Alarm.com Acquires OpenEye on Oct 21, 2019
Alarm.com is targeting commercial expansion and now they have a commercial cloud VMS with the acquisition of OpenEye. In this note, based on...
Knightscope Sells Just 1 Net New Robot In 6 Months on Oct 04, 2019
For the first half of 2019, US government records show that Knightscope has sold just 1 net new robots ('machines-in-network'), inching up from 52...
Critiquing Carnegie's AI Surveillance Paper on Sep 25, 2019
The Carnegie Endowment has issued an ambitious paper on the Global Expansion of AI Surveillance. While its aim is applaudable, the paper has...
RealNetworks SAFR Facial Recognition Profile on Sep 25, 2019
RealNetworks entered the surveillance market by giving away their analytics to schools for free, and is now targeting large commercial users with...
Directory of 70 Video Surveillance Startups on Sep 18, 2019
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known. 2019...

Most Recent Industry Reports

Camera Field of View (FoV) Guide on Nov 13, 2019
Field of View (FoV) and Angle of View (AoV), are deceptively complex. At their most basic, they simply describe what the camera can "see" and seem...
UK Big Brother Watch: Hikvision Is 'Morally Bankrupt' on Nov 13, 2019
UK civil liberties advocate Big Brother Watch has condemned Hikvision as being 'morally bankrupt' following IPVM exposing Hikvision marketing...
Color Low Light Mega Camera Shootout - Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision, Panasonic, Speco, Sony, Vivotek on Nov 12, 2019
This is the biggest color low light shootout ever, testing 20+ super low light models from 10 manufacturers: Increasingly, each manufacturer...
Wireless / WiFi Access Lock Guide on Nov 12, 2019
For some access openings, running wires can add thousands in cost, and wireless alternatives that avoid it becomes appealing. But using wireless...
Open vs End-to-End Systems: Integrator Statistics 2019 on Nov 11, 2019
Preference for open systems is on the decline, according to new IPVM statistics. We asked integrators: For video surveillance systems, do you...
Biggest Low Light Problems 2019 on Nov 08, 2019
Over 150 integrators responded to our survey question: "What are the biggest problems you face getting good low-light images?" Inside, we share...
US Issues Criminal Charges For Fraudulently Selling Hikvision And Other China Products on Nov 07, 2019
The US government has made an unprecedented move on the video surveillance supply chain, charging a US company, Aventura for "having conspired with...
The Access Control Codes Guide: IBC, NFPA 72, 80 & 101 on Nov 07, 2019
For access, there is one basic maxim: Life safety above all else. But how do you know if all applicable codes are being followed? While the...
Rhombus Cameras, VMS and Analytics Tested on Nov 06, 2019
Rhombus boasts they have created "the new standard in Enterprise, cloud-managed video security" and told IPVM in January 2019 they offer twice the...