Panasonic Sells Off / Spins Out Security Business

By John Honovich, Published Jun 02, 2019, 08:07pm EDT

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

Agree: 8
Disagree
Informative: 1
Unhelpful
Funny

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

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

***** ****.

Agree: 1
Disagree
Informative
Unhelpful
Funny: 9

***** ***** *** *******?

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

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

Agree: 1
Disagree
Informative: 1
Unhelpful
Funny

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

Agree: 2
Disagree
Informative
Unhelpful
Funny

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

Agree: 2
Disagree
Informative
Unhelpful
Funny

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

Agree: 4
Disagree: 1
Informative: 1
Unhelpful
Funny

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

Agree
Disagree: 1
Informative
Unhelpful
Funny

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

Agree: 2
Disagree
Informative: 1
Unhelpful
Funny

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

Agree: 2
Disagree: 4
Informative: 2
Unhelpful
Funny: 1

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

Agree: 2
Disagree
Informative
Unhelpful
Funny

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

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

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

Agree
Disagree
Informative: 4
Unhelpful
Funny

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

Agree: 7
Disagree
Informative
Unhelpful
Funny: 12

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

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

Agree
Disagree
Informative
Unhelpful
Funny

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

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

Agree: 5
Disagree
Informative
Unhelpful
Funny

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

Agree: 5
Disagree
Informative
Unhelpful
Funny

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

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

 

Agree: 2
Disagree
Informative: 1
Unhelpful
Funny

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

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

Agree: 2
Disagree: 2
Informative
Unhelpful
Funny

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

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

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

Agree
Disagree
Informative
Unhelpful
Funny

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

Agree
Disagree
Informative
Unhelpful
Funny

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

Agree
Disagree
Informative
Unhelpful: 1
Funny

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

Agree: 1
Disagree
Informative
Unhelpful
Funny

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

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

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

Agree: 5
Disagree
Informative: 1
Unhelpful
Funny

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

Agree: 1
Disagree
Informative
Unhelpful
Funny

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

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

Agree
Disagree
Informative: 1
Unhelpful
Funny

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

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

Agree: 1
Disagree
Informative
Unhelpful
Funny

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

Agree: 4
Disagree
Informative: 1
Unhelpful
Funny

******** **** ***** **** 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).

Agree: 1
Disagree
Informative
Unhelpful
Funny

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

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

Agree
Disagree
Informative
Unhelpful
Funny: 2
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