Pelco - A Decade of Decline

Author: John Honovich, Published on May 16, 2016

Pelco's 2007 acquisition for $1.5 billion USD remains one of the largest video surveillance deals ever, even including the industry's recent wave of buyouts.

But the deal, nearly a decade later, has not worked out well.

Now, Pelco has a new CEO and the company is hard charging to turn things around.

In this report, we examined what happened and what Pelco is looking to do to change this.

*****'* **** *********** *** $*.* ******* ********** *** ** *** ******* ***** ************ ***** ****, **** ********* the ********'* ****** **** ** *******.

*** *** ****, ****** * ****** *****, *** *** ****** out ****.

***,***** *** * *** ****** *** ******* ** **** ******** ** **** ****** ******.

** **** ******, ** ******** **** ******** *** **** ***** is ******* ** ** ** ****** ****.

[***************]

Revenue *******

** *** **** ******, *****'* ****** ******* *** ******** ~**%, from *********$*** ******* ** **** ** ~$*** ******* ** **** (*** estimate).

****** **** ****, *** ******** (**** ********* *****) *** ****** doubled ** ****. ** ***** ****** ********** **** (******* ***********), Pelco ****** ** ***** $* ******* ****** *******, **** **** 3x ***** *** ~$*** ******* **** *** *****.

Valuation **** * *******

***** *****'* ********* *******, ** ***** * **** ***** *** Pelco ***** ***** ** ** *** $*** ******* *****, $* billion **** **** **** ********* **** *** ***** ****. *********'* 2006 ********* ** ***** ** ** ******* *** ********** ****, and ***** *** ********, * ********** ********* *** ***** ** much ****.

***** ********* ** ** * *** ** ****** ***** ********* ******* Pelco ***, ** **** ***, ********* ***** ** ****** ***** * big ****.

Still ********** ***

**** *****, ***** ** ***** * ********** ***** ******* *** the ***** ************ ******. *** *******, **** *** ******* *** same **** ** ********, ** ***** ** *******. ******, ***** are **** * ******* ** ************* ***** **** **** $*** million ** *******; **** ***** *** **** ******* ** ~$*** million ******* (** **** ~$*** ******* ** **** ******* **** Pelco *** ** **** ****).

****, ***** * ****** ** ***** ****** ********* **** ********* significantly ** *** **** ******, *** **** ******* ***** *********** ** *** **** ***** ********* ******.

** *** ***** ****, ****** ********* **** ******** *** **** that **** *** **** ***** ** ****** **** *********** **** the **** ******, ***** ********* ** **** ** *** ***********. Indeed, *****'* **** ******** **** *** **** ****** *** **** ***** advantage ** ********* *****, *********** ***** *** ********* ********* **** large ****** ***** *******.

Causes - ** *** ******** *******

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

  • ******** ** ********- ***** *** ******** **** *** *********** *****, ********** ****** the **** - **** **** *****, ** **** ** ******* and *** ******* (*.*., *** ******* ***** ** ****** **** ******* ***** *** ****). *** ******** ******* ** ** ****** **** ****, *** Pelco *** *** **** ** **** **** ****.
  • ******** *******- ** *** ***-********* ***, ***** *** **** ***** *** its ****** ******** *******. **** ** ***** ****** ******** **** similar ** ******, **** ************* ********** ** ******* ****** ** customer *** ***** *******. ********* *** ****.

Back ** ****?

** *** **** *** *****, ***** *** **** **-********* *** is ********* **** ******* *** ****** ******. ******, * ***** ago, *** **** **** ** *********:

"***** ** ****. ... ** *** ************* **** **** ***** got ******** ** ********* ********, **** ***** ***** ***********, ** got ********** ******* *** * ****** ** ****.... ** **** track ** *** ********, *** ******. ** **** * ******* price *** ****."

New *** / ********** ********

***, ***** ** * *** ***,****** *******,**** *** ****** / ********** ********. **** **** ** **** ***** **** *** *** **** around, ** ** ***** **********, ** ********** *** ***********, ***** getting *** ******** ********. *** *******, ***** ** ** *** middle ** ******* ** * *** ***, **************** **** **** ********** ******* ***** * ********** *****. ***** **** they *** ***** ** ******** ** ********* *** ******** ***.

**** ******** **** ***, *****'* *** *** ****** ****** *** ***** nor ********* *** ***** ** ** **** ***. ******, ** **** his ******* ** ** **** ***** *** **** ***** ********.

*******

********* *** * *** ** ****** ** ***** **** *** past ******. ** ** *** **** ** ** ** ******** to **** ***** ******, ********** **** *** ******* ******** **** China / ********* *** ******* ** **** **** *** *** heart ** *****'* ******** *** * ***** ****** ****.

***, ** ***** ** ** **** ** ******, **** **** need ** ******* **** ****** ******** **** **** **** ***** *********** with *** **** *** ********'* ** *** ********.

Comments (12)

*** *'* ********* **** *******... ********* *** *****. ********* **** all ********* *** ** *** ****** * ***** ****** ** as **** ******, *** **** ***** **** **** ***** *****. Well **** *** *** **..

**** * *****, * **** *** ***** ***** ***** *** the **** ** *** ******* ****** ***** ***... * **** they *** *** **** ** *****.

**** *******. **** **** **** *** ** *** **** ** IP. ****, **** ** ****** **** ***** ******* *** ****** back, **** **** ********* *** ****/******** ****** ***** ********** ****** ********* ** *** **** *** *** ****** ** traction ** *** **** *** *****.

**** **** ** ******* ****/********/********* ** ********* ** ***** *** Sales **** *** ******* ***** ***** *** ** ***** ** old *** *** *********.

**** ******** **** ***, *****'* *** *** ****** ****** *** focus *** ********* *** ***** ** ** **** ***.

*** **** *****'* ***** * ***** ** ****** ****** **** you **** ****?

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

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

(*) ******* ** *** ** **** ** ** **. *******, if ******* ** ***** ** ***, **** ******* / ***** their ********* ** * *** **** **** ** *** (**** ****** *******). *****'* *** *** ***.

(*) ******* **** *** ******* ******* ** ********** *******, ***** is **** **** ** * **** **** *** ******* ** than ****** ** *** *** ** **. ** **** ****** to **** ** ***********, ** ***** ** ******* *** ******* to *** *&*, *** ***** ****** *** *****, **** ***** term *****, *** **** ***.

* ** *** ****** ***** ***'* **** ** ****. *** instance, ** **** **** **** *** *** *** **** *** have ******** ** * **** ** ***, ** ***** **** sense **** ** ****.

*** ** **** **** **** ****** **** $**? *** **** net ******* **** **** ****** ***** ****? ** ** ******** they ***** ****** ***** **** ** * ****? **** ** they *** **** $** ** *********, ***** *** ** ** net ***** ** ****** **** ****** **** * *****, **?

*** ** **** **** **** ****** **** $**?

* *** *** ***** **** '**** $**".

* ******* ***** ********* ***** ** '**** * *******'. ***** of ** **** *****, ***** ** **. *** *******, *** bought ******** ***** ** $** ** ****, **'* ** ~$** now. ********'* ********** *** *** **** **% *** ***** ***** price **, *** ** *** **** ********'* ***** ***** ***** buying ** *** $**, ***'* **** * ***.

**** *** *****, ******* ** *** ********* ********* ******* ** operational **** **** **** *** **** ****** **** *****, ** Schneider *** ** **** ** ***, *****'* ******** **** ** sell ** *** * ******* ****, **** *** ********* ** 'down * *******'.

"***** ********* ** ** * *** ** ****** ***** ********* selling ***** ***, ** **** ***, ********* ***** ** ****** quite * *** ****."

* ***** **** * **** *** ******* *** ***** ****, I ******* ** *** ******* ****.

**, *** *** ** * **** ****** **** ** ****** if **** **** *****?

*** **** ***** ** *** ********** **** *** ***** **** paid ($*.* *******) ** *** ***** **** ******* ** *** sale. ****** *** ***** *** ***** ******* ***** ** ******* to *** *** * ******* **** * ****** ** ********* revenues *** ~$*** ******* ****** *****.

** ********** ** *** ~$*** ******* ***** *** * ***** price, ***** ***** **** * **** ** ~$* *******.

*** *** **** **** ***** ** *** *** ********** ** estimated ********* ** ~$*** *******?

~$*** ******* ***** *********:

****** ~$*** ******* ****** *******, ***** ****** ** ******* *******, limited ****** *********.

********** *********** *** ** *** ** ** ** ***** ** sales *****. ~** ** *** **** ** *** *************; ** is *** ***** *********, ** ** *** ****** *********.

**** **** **** ** *****, $*** ******* ********* (**) ***** low, ***** *** **** ** ******** *** ***** *** * premium, ****** ******** *****. $*** ******* ********* (**) ***** ** hard ** ******* ******* ** ********* *****. ~$*** ** ******* in *** ******.

**********, ********* *** ***** ******** *** *** ****** ***** ** bid, *** ***** ** ********** *********** *** *****'* ******* / decline, ~$*** ******* ***** ** ********.

** ** *******, ***** *** ** *********** ** **-****** ** a ********* ** *** ********. ** **** **** ** ****** a ***** ***% **** ******** **** ******** **** ***** ***** value-based ******** *** **** ** *** *** (***, * ********** that ** * *** *** ******), *** ***** ***** ******** at * ***** ***** *** ***** *********** ** ********** (******** made/engineered/assembled *********** ** ***, *** *******), **** **** ***** ************* catapult ********** **** **** * ********** ********.

**** *********** *** ***-***** ***** ******* ****** ** *** ***** brand. ** ***** ** ***********, *** *** **** * ******** of "**'** **** ****" ***** **** *** ** ******* *** other ****-****** *******. **** ***** **** *** **** **** ********* killed **. ** *** *** ***** ** **** **** * new ****** ***, ****'* *** ****, ** ****** *** **** the ***** *** **. ** ** *** **** ** **-****** the ******** *** ****** ** * **** *** ********* ***** the ***** ****** ** *** ********* ******* ********.

******* ******** / ****-**-***** ******** ******** / ***** / ******* / ********

* **** **** *** ******** ** ***** *** *** ***** brand, *** *** *** ******* **** ******** ******* *** *** of ***** ******* ****** *** *** ********. * ******** * time ** **** **** * ***** ******* ** **** ********. I *** ********** * ***** ***** ****** ****** *** ****** technical ******* ***** * ** ***. * ****** *** ***** answering ******* *** *** **** *** ******** ** **** ******** himself. *** ***** **** *** ********** ** *****'* ********* *******. The **** **** * ****** ***** *** ******* ***** * years ***, * **** **** * *** ****** **** ******** support ******. ***.

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