"Grand Slam" For Pelco's PE Firm, A Risk For Motorola

By John Honovich, Published Aug 07, 2020, 10:41am EDT

The word "Pelco" and "grand slam" have not been said together for many years. But the PE Firm, Transom, who flipped Pelco to Motorola is celebrating just such a moment.

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At the same time, Motorola's CEO has disclosed more financial details about Pelco giving a better sense of where Pelco is at and what Pelco will be costing them going forward.

We examine why Pelco's previous owner is so happy and whether Motorola will be as happy with their Pelco purchase in the coming years.

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

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**** ****** ** ****** *********** ********* * grand ******* *** ***** ****:

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*** **** *******, ***-******* claim *** *** ****** Transom ****:

********* ** ** ******** source, ******* ******** *12x ****-**-**** ****** on its investment in Pelco.

**** ***** ******** **** ** ************ * *** ***** reported:

*** **** ****** * 12 ***** ****-**-**** ****** on *** ****, ********* to * ****** **** knowledge ** *** ****.

12X ******

***** *** ***** ***** of $*** *******, **** implies **** ******* ******* paid $** ******* **** 14 ****** ***. ***********, this ***** **** ********* on *** **** **** Transom **** ** ******** from ********* ***** **** the **** ** ******.

Transom ** ******* ***** ******

******* ******** *** ******* to ****.

*******, *********'* ************ ** *** Pelco ****, **** ********** "*****" process ** *** ** their ******:

***** *** *********** ** the ******* ** *** 2019, ** **** ************ executed *** ************ ******** ******* ** transform *** ********** *** strategic ********* ** *** Company. *** ********** **** played * ******** **** in ******** * ********* infrastructure **** ******* ***** to ****** *** ******* as ** ******** ******* video ******** ********* ********.

***********, ***** *** ********** not ******** '*** ******* as ** ******** *******' anything.

** *** ******** ****, Transom *** *** **** Pelco *** ** *** not **** ** *** major ****** ** ******** in *** **** **** so **** *** ****. However, ** ***** ****** clear ** ** *** Transom *** ***** ** substantially ******* ***** ***, while **** *** *** really ***** ***** ****, we *** ******* ***** of ************ **** ***** development ****** *******'* *********.

Transom ****

**********, ******* ** *** winner ****. ******* **** actually *** * *** return ** ******* ** us ***, ** *** time ** *** **** Pelco ****, ******** ********** repeatedly ****** ***** * Pelco ***** ***** ** the $** - $** million *****.

***/***, ** ******** ****** really ****** ** *** Pelco, *********, ********* ******** 14 ****** ***. ***, Transom *** * **** run, ** *** * grand ****, ** ******** to ********.

Motorola ******* ***** ********* *******

** *** **** ****,********, ** *** ** investor's ****, ******** **** ********* details ***** ***** *** they **** *** ****. Motorola ******** ***** **** year **** ******* ** be ~$*** - $*** million *** **** $** - $** ******* **** when **** ******** **** in ***** ****** ** the *** ** *** year. **********, ***** ******* ~$200 ******* ****** *******, still * ***** **** from *** ***** ***** at $***+ ******* ****** revenue.

********, ******** ******* ** "incremental $** ******* ** OpEx *** *** ******* of *** ****" ** Pelco. ** ****** **** to ** **** ******** investing **** ***** ** sheer *********** ****** ** that **** ***** ** odd ***** ****** $*** million *** *** *******.

Won't **** ** ***** ********

***** *** ******** ** spending $*** ** $*** million (********* ** ****** Pelco **) ***** **** like * ***, ******** has * ****** ************** of ~$** ******* ** it's ******* * *% bet *** ********. ** it *****, *** ****** cost **** *** ** much.

*** ******** **** *** risk ***** ** ****** if ** ************ *** core ** ***** ***** surveillance ********, ********.

Motorola *** ********* ***** ****

******** *** ***** ***** its **** *** ***** focusing ** ***** *** marketing **********:

*** *** ****** *******, use *** ****** *****, use *** ************* *********, use *** ****** ********* into *** ******* ****** that ***** ******* ****.

***** ** ** *** think *****'* ****** ******* is **** ******, ***** brand *** **** *****, Pelco **** **** ** international ********* *** * presence ** *** ******* market **** *** **** Motorola.

** ** ***** $*** million + **** ** millions **** ** ***** it **** **? ** be **********.

Vote / ****

Comments (14)

Undisclosed #1

08/07/20 02:46pm

**** ** *** ******* able ** ******** **** Pelco *** ** *** not ** *** ********, I ***** ** *** going ** **** **** the **** ****** ** make ***** ** ***** in *** **** ****** will **** **** *******.

Undisclosed Manufacturer #2

08/07/20 03:39pm

** *** **** ***** was ***** **** ** the ***, **** **** missed ***** ****** *** the **** ** ** and **'* **** ******** ever *****. ******** *** probably *** **** ******* out ** *** ***** - ********** ** ***** American *** *** ****** East. *******, **'* ***** to **** * *** of ****** ***** ** earn **** *** **** investment ****'* **** ****. I ***** **** ** a *** **** *** Motorola.

Undisclosed Integrator #3

08/07/20 03:56pm

***** ***** **** *** Pelco. * **** *** a **** **** **** were ** *** ******* begging ************* ** *** them, *** ***** *** for *****. *** **** still ***** * **** bit ** ***** ** outdated ******** ********* ****** and **** ******* ********** employees, *** **** **** will ********* **** ***** people ** *** ** pasture.

Undisclosed Manufacturer #6

In reply to Undisclosed Integrator #3 | 08/07/20 06:16pm

* ***** ** ************* stateside **** * **** mine ** *************/********* ***** has ** *******, ***** profitable ************* ******* *** verticals. *** ******* *********** you ******* *****-**** ** the ** ****** *** handled **** **** ********** and ************ ** ***** international *********/********. **** ********* the ********** ******* *********, the ********* ** ********, the **** ** ***** and *** ** ******* real **** ** ***** borders ** **** *****!

* ******'* **** ** a **** **** *** I ***** **** *** a ******, ****-***** ***** for **** ** ****!

Undisclosed #4

08/07/20 04:12pm

*****! ** ****** **** one *** ** ******!

Undisclosed Integrator #5

08/07/20 05:06pm

**** ******** ******** *** 20% **** ***** ** 10mm. ** *** ** it *** **** *** 110mm *** **** *** the **** **** **** cash **** *** **** out *** **** ** sale ** ******** *** entirely ********.

John Honovich

IPVM | In reply to Undisclosed Integrator #5 | 08/07/20 05:17pm

******** *** **% ****

**** ***** *** ****** a ***** *** * am *** **** ***** a ********** ********! :)

** ** ******** **** debt ***** * **** in *** ****** ****** though * ** ******* how **** **** *** would ** ******* ** use **** ** ***** like *****.

Undisclosed Integrator #7

08/07/20 07:30pm

******** ******** ** *** Pelco ******* ** ******, CA? ******* ******** ** looking ** ****** *** Avigilon **** ** ******* capabilities?

John Honovich

IPVM | In reply to Undisclosed Integrator #7 | 08/07/20 08:06pm

******** ******* *** ****** in ****. ******** ***********'* ******* ** ********** ******** **** ** the **** *** ****** Pelco ** *** ***.

Undisclosed End User #8

08/08/20 04:55am

***** *** ****** ****** deals *** **** ** Motorola, ** ** **** give **** ****** ** more *** **** ******* projects *** **** ******** base ** *** ******** and ****. *** **** not ** ** **** for *** **** *** Avigilon, ** *** **** are *** **** ***** surveillance ************* ** ** and **, ***** **** not ** *** **** moving ******* *** ** a *** ** *** other, ******** **** **** competition ** ****** ******** Solution *********. *** ****, this ** ** **** Motorola ******* ** ******** with *** ***** ****** without *************.

Undisclosed End User #9

08/10/20 06:51am

**'* ****** * ***** deal *** ********.

**********-****, ***** **** **** behind *** ***** *** it's ****, **** *** don't **** *** ****, to ****** ** ****** R&D ** *** ***** of *** ******* ********* etc.

*****'* ***** *** ************ network ******, *** ***** that ********** *** ** sell ** ********** / public ******** (*** *** purchasing ***** ** *** govt/public **** ** ***** sales ******* *****), ** a ***** *****. *'* be **** ** ************* someone ****'* ******* ** thrive ** ** *********** where *** **** *** take ***** ** *****, let ***** * ***** of ****.

** ******* ****, ******** could *** ******** **** in ***** ******** *** have ** ********-*********** ******* catalog, ***** ** *** even **** ****. ******* marketing ****** ** ****** Avigilon ***** *** ****-****/******* edge ***** *** ***** the **********/****-******/****** ***** *** grow ***** ******* ****** penetration **** *******. ******* the ***** ***** ** Avigilon ** *********** *** Pelco ******** * ****** (save **** ** *** best ******** *** ******** as ** **-****) *** Pelco ***** ***** ******** competing *** *** ****/*****-********* buyer's *****.

***** * ***** **** has * ****** ******* overall **** ******** ******* of *** **/******* ******. I *** *** **** (subjectively) * *** ** hardware ** *******, ********, etc. **** *'* *********. Not *** ** *** the ******* *** *** roll ** *** *** yourself :)

John Honovich

IPVM | In reply to Undisclosed End User #9 | 08/10/20 11:16am

*****'* ***** *** ************ network ******, *** ***** that ********** *** ** sell ** ********** / public ********

***** *** *** * lot ** ******** ******** over *** **** *** years ** *** **** how **** *** ***** understands ***. **** *****, I ***** ** *****. I **** ***** **** of ********** / ****** entities ***** ***** ** at ***** ********* *** Pelco *****.

*** *** ** *** the ******* *** *** roll ** *** *** yourself :)

******, ****** *** ******** is *** **** ** pay *** *** ******* mat...

Undisclosed Integrator #10

08/10/20 03:56pm

******** **** * ***** purchase *** *** ***** time ** ***** *** to *** ******** ( a ***** *************) ****** Pelco ********* *** **** facility. ** **** *** surprised **** *** ********* head *** *** ************ several ***** ***. ** we *** ************** ** this *******, *** ****** to ***** *** ********** and ******* **** ** a ****** ******** *** dismissed - *** **** trouble. ** *** ***** is ** ********** ***** among ******** *** **** to **** *******, **** they ******** ********.

Undisclosed Integrator #11

08/11/20 02:22pm

* ** ******* ** see ** **** ** how ******** **** *** Avigilon ******** **** ***** without ************* ***** * disservice ** ******** *******?

******** ***** ****** ******* out ** ********, **** of *** ***** **** have ******* ****** **** their ******* *** ************.

******** **** **-********* ******* in ***** *** * vast ******** ** **** were ********** **** **% off ** **% ***. Those ******* **** *** need ** ****** ******** all ***** ******** **** the **** ** ***** getting **% *** ** exceed * ***** ***** target **** **** ** retain **% ***. **** new ***** ****** ** now ** ****** ** comparison ** *** ******** sales ******.

***** **** ** ***** was ** **** **** taste, ** ****** ** unreasonble ***** ******** **** Motorola ******** ********** ***** leadership ** ********* **** re-evaluation ** ** ********* bad ****.

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