Panasonic Sells Off / Spins Out Security Business

By John Honovich, Published on Jun 02, 2019

Panasonic has sold off its security systems business to a private equity firm, after suffering years of challenges.

panasonic sells off

The new company, which will retain the Panasonic brand, tells IPVM that they will increase investment into R&D and the business.

Inside this note, based on feedback from the company, we examine:

  • Who the new majority owner is
  • What financial position Panasonic shall retain
  • How the new company is being structured
  • What issues brought Panasonic to this decision
  • How well the new company may do
  • What this (and the Pelco deal among others) says about the industry
  • How it compares to Sony, Canon and Hanwha moves

Financials **********

******* * ***** **** nor ******* *** *** business *** *********. ** would ****** *** ********* to ** *** (** revenue ** *****) ***** the *********** ********** **** business *** ***** **** the **** *** ***** (race ** *** ******, OEMing *****, ***.).

******* ***** **********, *********'* video ************ ****** ******* is ***** ****** ** the ******** ** ******** globally, ****** ***** **** companies **** ********, ****** and ******* *** *** all *** ******, ** the ****-******* ****** ******* range.

Official *************

***** *** * ******** public *************,*** **** *************** **** *** ******** Polaris.

Deal *********

** ********* *********:

*** *** ******* **** be ****** ****Security ******* ******** ******** of Connected Solutions Company of Panasonic as a main **** and will include the industrial & medical vision compact camera R&D department of its Innovation Center [emphasis added]

**** **** ******* * operations:

  • ************ ******* ******** (*********** Surveillance)
  • ********-******** ********** (****** *********)
  • ******* ******** (********** & Medical ******)

***** *** '******* ******' element ** ********* *** security, ********* **** **** that:

***** *** *********** ************ of ***** *** ********** shared ****** *** ******** Group, *** **** ******** Medical.

***** **** ** ******* differently ****** *** *****:

  • ** *****, ******* ********* Japan
  • ** ***** *******, ******* the *** *******'* *** internal ***** ****
  • *** ***** ***********, ******* existing ********* ******** ***** companies

********, *********'* ***** ******* is ******** ** **** deal**** *** *** *** sale ** ******* ***** ****.

New ***** ******* ******* *****

*** *** ***** ********* ******* *****, * ******* ****** firm **** *********** ** Japanese *********,********* ~** ************** ******** **** ********* like *******, *******, *** Toshiba.

******* **** *** **% of *** *** *******.

Panasonic ********* **% ********

***** ********* ** ******* off *******, ** ** retaining * **% ***** of *** *** *******.

Branding ******

*** *** ******* **** retain *** ********* *****. While ***** ** * reasonable ******* ** *** brand ********** ***** ******* in **** **********, ***** that ********* ***** ***** to **** ** ******* their ******** ******** ** most ** *** ***** plus **** * **% stake, ********* *** ** incentive ** ******** ******** the ***** ** ***** products.

Issues / ******** ******* ****

********* ** * **** company (~$** ******* ****** revenue) *** ********** *** **** ******* flat*** * ****** *** the ******** ******* ******** is ********* **** * fraction ** *** ******* (1% ** ****).

**** ******** ** ******** and ******** ********, *** a *********** **** ** the *****, ********* ***** to*****-**** *** ******* ******** (e.g., ********, **********, ** *******, ***.)

**** ** ****, ** was **** ** **********, with ********* ******* *********:

*****-******* ********** **** ********** to *** ***** *** marketing *****. ***** **** broken ****.... ******* ********* all ***** *** ********* activity ****** ******** *******, placing ********** *********** ** a *********** ****

**** ****** *** ******. Individual ******** ********,***** ******* *** *** in ****(*** ** ******** *** ******* ** Pivot3) *** *********'* ******** camera ********** ******.

****, ******, ********* ******** *** developer *** ***** ****** OEM ************. ***** *** *** was *****, *** **** money ************ *** ****** from****** ***** ********* ********************* ******* ****** ***************. **** ***** **** felt **** *********** *** it ********** *********'* ***** and **** ** ** increasingly ******* **-*******. ** least ** *****, ********* *** ******* OEMing *****.

Outlook *** *** *** *******

********* **** **** ** focus ** ***** ** innovator ** ***** ************ products. ** **** ***, being ***** *** ******* on ** ****** ****.

********* ***** **** **** investment **** ********:

*** *** ************ **** be ****** ******* ** the ******* ******** *****, and ** **** *** investment **** ********.

*********** ****:

**** ** ********** *** value *********** **** ** accelerating ********** ** *&* and ********** *******.

** ********* *** **** out ***** *** ********** thin ****** *** ***** on ********** * **** range ** ******* **** can ******* **** ********, Axis, ******, ***., **** have * ****** ** grow *************.

Poll / ****

Possible ****** ***?

***** *** ******* *** not ************ ******* ** Polaris **** ********, **** did ***** * ******** of ******** ***** **** IPOs **** *** ***-****:

******: A former subsidiary of Toshiba, which provides Route Search Services. Polaris supported the company to become independent. It emerged from a mentality of conglomerate‘s subsidiary and redefined its position. In March 2011, successfully listed on “Mothers” of Tokyo Stock Exchange after 4.5 years.

** ********: Former LCD panel manufacturing equipment business division of Hitachi. Polaris has been supporting the establishment of an independent company structure and the implementation of growth strategies in global markets since 2016. It is now preparing for the IPO.

** **** *** ******* at **** ****-*** / turn-around, * ***** ****** company **** ***** ** sensible.

Pelco *** **** **** ****** *** ********

** * *** **** period, *** ** *** biggest ***** ************ ******* of *** ***** **** been *********** **** ***. The ********* **** ************'* **** ** ******* private ****** ****.

** *********** **** ************ / *****-******* *** ********* poorly. *** ***-********** ***** surveillance ********* ** *** last ****** **** ************** been ******* ** ***** surveillance, *** *****-******* *** machines **** **** ** IP ******* **** ** phones.

***, **** * *** era ** ** *** cloud-driven ***** ************ ******** starting, ** *** ********* that **** ************* **** be **** ** ***** the ***** *** ********** that ******* *********** *** provide.

Canon, ****, *** ********* ***********

**** *** ********* **** historically **** *** ** the ******* ******* ** video ************. ***, **** Japanese ****-********* *** *** of *** ***** ************ industry (** ***** ********). Panasonic's **** ***** **** than * ***** ********** *** ****'* '******** partnership'**** *** **** ********* transfer ** ***** *** Sony ***** ************ ******** effectively, ** *** ***********, a ***** **** ****** Bosch ********.

** ***** *********'* ******** has **** ****** **** Sony's ** ** ******** for ** ***********, ******* organization **** ******* **********.

****, *********, ** ***** from * ********** ***********, makes ***** *** **** direct ******** ****** ** video ************. *******, ***** has ********* **** ***** its ***** ** ********* its *********. ******, ** was * ***** ***, this *****, ********* ******** ************ ******* *** ******* of ******** * ****-******** of *********, **** *** Briefcam, **** **** ********** continuing ** *** *************.

Hanwha **********

****** ** *** **** case ******** *** ********* here. * ***** ***, when****** ******** ******* ******* video ***************** *** *********** ******** about ****** *** ***** and ******* ****** ***********. While*** ******* ***** *** lost, ****** *** ******** become ******** ** ***** surveillance, ** **** ******** heavily ** *** ******* development *** ******** ***** organization, ********* ********* ********** ************.

** ** * ****** that ********* *** **** to, **, ** *****, hope ** *******.

Comments (28)

 **** **** ** *********'* part. **% ***** *** the ***** **** ** a **** ****. ** they *** **** * way ** ******* ******* cameras ******* *** ** quality ****, **** **** be * ****** *****.

****, *********, ** ***** from * ********** ***********, makes ***** *** **** direct ******** ****** ** video ************.

*** ** ****, **** about********************?

***** ****.

***** ***** *** *******?

*******: *** ***** *********** ******** **** ******** Division

***, *****'* *** / Ganz, ** ***** ** the ************ ****** *** they *** **** ******* overall *** ** *** surveillance ********.

**** **** **** **** interesting *** ****** ****** solutions.

**** ************ **** **** make **** ** ******? There ********* ***** ** but **'* **** ** tell ******* **** ********* or *******.

** **** **** **** cameras **** *** ****** to *******, ********* **********, reliable *** ********* ****.....

****** **** **** ** install. ** *** **** made ***** ******* ******* hard ** *******.

***** **** *** *** having ********** ****?  ***** from *** ******** ***** that **** **** ** different ********** ** *** PTZs * **** *** heard ** *** ******.  Moog *** **** **** fairly ********* ****** *** Panasonic **** ** *** US, *** * ******* other ******* **** ********* mounts.  ******* ** **** region **** *** **** universal.  ** **** ********* cameras **** ****** ** mount **** ******** ******* with ******** ** *** have ******* * ******* mount *** ****** * surface - ** ** RMA ****.  **** *** Panasonic *** *** *** which ****** ** *** least ******** **********/****** ***** in *** *****.

************ **** ** **** a ****** ******** ** bundling ***** ******** **** smaller *** ***** ************* such ** ******. ***** they **** ********* ** Panasonic, **** ******* ***** that *********** *** **** started ***** **** **** Panasonic. ***** *** **** to ****** ***** ***** business *****.

* ****** **** **** happen ** *** ******* Panasonic ** ***** ****?

**'* ***** ***** ****, as **. *** ** sales ************ *** ***** with ** *** *** excited ***** *** ****. 

** ********, *** ** is ** *** ***** of *** ****. *** example,**** *********'* ************:

*** *** ******* **** aim ** ******* *** revenue *** ************* ******** centered ** *** ***** American ******

***** ****** ** ****, as * ***** ****'* want ** ***** ** what **** ** **** - ***** ***** :) 

***** ****** ** ****

* **** *** **** statement ** * ******** this ******* **** * saw **** *******.  **** would ** *** ****** big * (** ***** in *** ******) ** the ******** ****** *** collapsing ** ***** *****.

***, ***** ** ********* big **** ** ***** surveillance, ****, *** ** Bosch ***** ************ :) but** ****...

* ***'* *** **** happening, ***** ******** ** in ******** ***** **** Panasonic *** ***** **** has * ***** ********* (e.g. *********). *******, * do ***** ***** ****** invest **** ** ***** video ************ ******* ****. It's ********** **** ******** to ***** ********* *********** such ** ******** *** Axis.

********* *** ***** **** was * **** ****.  While ****** *** **** quite **** ******* ******* the **** ** **** take **** ** *** pain *** ** *** sale.

********* *** ***** **** was * **** ****. While ****** *** **** quite **** ******* ******* the **** ** **** take **** ** *** pain *** ** *** sale.

**** *** ** ** different **** ******;  ** you’ll ****** ****** **** using *** ******* **** for * ****** ** years ***** *** ****, claiming **** *** *** for ** **** ** they ******, *** ** reality *** ** ********* to ***********...

 

******* *****. **** **** has ******** **** *********. The ****** **** ** replacing ***  ********* ****** quickly. ***** ******* **** Resdio, ***** **** ****** and *’* **** ***** new ***** ****** **** say ****** ** ****. 

** ** ** ****** from *** * ***** you **** *** **** Panasonic ** ***** *********.

*****, ******* *** * 40-year ***** ******* *** it ** *** "********* Home", *** ********* *********, as**** ********* ****** *****:

***** *** ****-***, ***** products **** ** ******** and **** ***** *** Honeywell **** ***** ******** to * ** **** license ********* **** ********* 

***** ****, '********* ****' will ********* ** **** (they *** ****** *** it) *** ******** ****** for ******** *********** *********.

*** **** ** ***** Connect *.* ***** ****** has ******* **** ********* to ********* ***** ** now *******?

**'* ******** **** **** to **** ********** ** Resideo *** ***** *** out ** *** ********* license, **** ** ***. I ******* *** ** my *** **** **** had * ****** ******* logo ********** *** *** logo *** *** *** of **** ***.

*** **** ** ******** in **** ****** ** surprising.  ****** ********* *** less ****** ***** **** I ***** ****** ** we *** ******** ** see ************* ********* **** all ** ***** ************* merging.

****** ********* *** **** market ***** **** * would ******

****. ********* ***** ** bigger **** *** ****** position ** ***** ************, especially *** ********** *** channel ********. ******** **** *********** **** ****** *** I ********* **** ** their ****** **** ****** presence ******* ***********.

*** ***** ********** *** a **** ** ****** that ** ** *** better ***** ** ***** surveillance *** ********** *** channel.

* ***** ******** *** it ******...  **** *** been ********** *** ******* things **** *** ***** now... ******* *****, ******** more ** ** *** less ** ********, *** holding ** ** * few ****** ******** *** not ******* ** **** spaces... ** ** * shame ****** * *****, well-known ***** ** ****, but ** *** ****** holding **.  *** ** will ***** ** *** name, *** *** ***** what ** **** ** for *** ****... 

* ****** ******** ***** with ********** **** **** some ******.  **** **** a ******* ******** **** reflects ********** ******* **** “wore *** *** ******* too ****”, ***** ******* they **** *********?

* **** ** * utility **** ****** **** a ******* ******* ** their ********* ******* ****** they **** ********.  

* **** ** * utility **** ****** **** a ******* ******* ** their ********* ******* ****** they **** ********.

***** *****(*) -  *** old **** **** *** HD-316 ** **-***?  **** of *** ****-**** ******* has **** ********* **** newer ****** ** *** past ****** ***** - NV300 --> *****, ***** --> *****, ***.

**** ***** ** * positive. "******* ******" ***** are ***** ********** *** taking ****** ********* **** have **** **** ********** and ********* **** ******* while ******* *** ****** off ** ** ******* profit. **** ****** ***** have **** ****** ******* the "******* ******" *********** which ******* ********** *** brand. 

***** ******* *** **** up ** ** ** different **** *** **-****** "Vulture ***********" ** ********* value **** ***** ******** companies, *** "********** *******" on ***** ******* ******* to *** **** **** to "********** *** ******** economy *** ********** ** Japanese *******, ******* ********* Japanese ********* ** ******* into *** ****** ****** with ***** ****** ************ and ****** *** ******** a *** ******* **** via ***** ** *****."

** ******* ** ** seen ***** ********* *** company **** ****. ************, a ******* ********** ****** will ************ * *******.  All *** *****, *** company's ****** ** ********** devoured *** *** ********** obliterated.

******** **** ***** **** in ******. **** **** other ********* ***** **** the *** *** *********** act ** ******* *** recycle, *** *** * bad *** **** ******* their *** ******. *** can't ***** *** ******** for *** ****** ***** or ***** *** **** to ****.

*** **, * ***** trust **** **** ***, either. * **** ** work *** * ********** company **** *** ****** for * **** ** a ** *******. **** had ***** ***** ** pie ** *** *** plans ** **** *** publishing *****. *** ******** knew *** ******* *** worth * *** **** than *** ******** ********* property ** *** ******* on. * ***** ***** the ******** **** ***** out (* ****** ***** they ***** *** ******* bidder).

* **** ** **** for * ********** ******* that *** ****** *** a ****...

*** ** ** *** chance * ***** ***** publisher?

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