Sony Acquires Pixim

Author: John Honovich, Published on Sep 12, 2012

Sony, one of the world's largest manufacturers of image sensors and cameras, including surveillance, has acquired Pixim, one of the most well known brands in surveillance imaging. In this note, we examine the acquisition, including the outcome for Pixim and the potential for future developments.

Acquisition Overview

Pixim provided this statement:

"Sony Electronics Inc., a U.S. subsidiary of Sony Corporation, has entered into a definitive agreement to acquire Pixim Inc. a Silicon Valley-based company which has expertise in designing chipsets for security cameras. Sony aims to utilize their Image Sensor technologies and engineering design expertise to further strengthen its global design and support functions. Upon the conclusion of the acquisition, Pixim Inc. will play an important role for our image sensor semiconductor business as a subsidiary of Sony Electronics."

In addition, Pixim noted that, "The merger is a positive outcome for Pixim's main constituencies: employees, investors, and customers. Pixim company and product brands (Seawolf, Nightwolf, etc) remain unchanged. Sales, customer support, and technical support contacts remain unchanged."

Background

Pixim is historically well regarded for their image processing especially as it relates to handling wide dynamic range scenes. Specifically, Pixim's technology focused on an advanced and uncommon technique to adjusting exposure for individual pixels. Additionally, in 2011, Pixim acquired Advasense including their well regarded engineering team, including the author of a respected image sensing blog.

Pixim's Motivation to Sell

Since starting in 1999, the company has raised well over $100 million in funding, including $5 million last year (see filings). Despite this, in the past few years, Pixim has increasingly struggled with the market's shift to megapixel. While the company was a long term leader in WDR enabled SD cameras, Pixim has never offered a MP version. Though Pixim has recently released enhancements to their SD WDR lines (such as the IR optimized Nightwolf), the lack of MP restrained Pixim from participating in the big growth segment of the market. Sources indicate a likely barrier was funding constraints for the expensive transition to MP sensors / imaging.

Given Pixim's current position and constraints, being acquired by Sony and becoming a part of their organization is likely a very good outcome.

Get Video Surveillance News In Your Inbox
Get Video Surveillance News In Your Inbox

Pixim's Valuation / Return

While the acquisition price was not disclosed, given Pixim's modest market position, the price is likely much less than $100+ million funding.

Given how rare chip startups are within surveillance, this does not have any strong comparables. However, this likely does reinforce how hard it is to build a successful new entrant in such a fragmented market like surveillance, even with a fairly well-developed brand.

How This Might Help Sony

One of the most interesting and confusing elements of this deal is that Sony is quite strong itself in WDR surveillance and routinely scores in the top-tier of our WDR shootouts. By contrast, since Pixim is SD only while Sony has WDR MP, Sony's overall quality in our testing was superior.

Moreover, while Pixim has multiple chip lines, the revenue itself from existing ones is fairly inconsequential to a company of Sony's huge size.

However, since Sony made this deal, we assume that they see some potential for combining Pixim's technology team with their massive resources to develop new solutions for the all megapixel future.

1 report cite this report:

History of Video Surveillance on Sep 22, 2016
This is a concise history of video surveillance covering the past decade.  The goal is to help professionals newer to the industry understand...

Related Reports

Axis Lowest Cost Outdoor IR Camera M2025-LE Tested on Apr 24, 2017
Axis has lagged offering low cost IR cameras while their Asian competitors have made IR standard even in their most entry level cameras. Recently,...
Dell EMC Surveillance Division Profile on Apr 20, 2017
With revenue growth from traditional IT customers slowing, Dell has set a focus on the security industry as a market where the company can offer...
Hanwha Lowest Cost WiseNet X Camera (XND-6010) Tested on Apr 13, 2017
IPVM bought and tested the lowest-cost WiseNet X model, the indoor 2MP fixed focal XND-6010 dome, continuing our testing of Hanwha's new WiseNet X...
Pelco Surevision 3 Tested on Apr 12, 2017
Pelco has released generation 3 of its Surevision cameras, claiming improved performance in both super low light and WDR performance. We bought...
Hanwha Wisenet X Tested on Mar 27, 2017
Hanwha has released their latest generation, the Wisenet X series, powered by their new Wisenet 5 processor. This new series claims improvements...
ObjectVideo Acquired by Alarm.com on Mar 14, 2017
Once potentially the most recognized name in video analytics, ObjectVideo has effectively been sold for pieces. Alarm.com has now acquired what...
Uniview (UNV) IP Cameras Tested on Feb 22, 2017
"We're #3," in China says Uniview (UNV). While the company significantly trails Hikvision and Dahua in total sales, one notable difference is that...
Electric Guard Dog - Hot RMR Company Profile on Feb 21, 2017
The financiers at the Barnes Buchanan conference praised a company named 'Electric Guard Dog'. While the name sounds fairly low tech, the money and...
Arecont Vision MicroDome Duo Tested on Feb 14, 2017
Arecont Vision is back with another multi-head camera, this time thinking smaller with the MicroDome Duo, a two-imager model, with the tagline...
$18.7M PSIM Acquisition Examined (IDV / Everbridge) on Feb 06, 2017
This may be the biggest deal for a PSIM developer ever. In a segment that has disappointed for more than a decade, a recent IPOed company has...

Most Recent Industry Reports

Last Day - IP Networking Course May 2017 on Apr 27, 2017
Today is the last day to register for the May IP Networking Course. This is the only networking course designed specifically for video...
Hikvision EZVIZ Amazon Scam Revealed on Apr 26, 2017
Hikvision is violating US Federal Trade Commission guidelines and Amazon rules with a "Honest" Review Program scheme that provides gift cards to...
Anixter CEO Admits Price Deflation and Non-Exclusive Integrator Sales on Apr 26, 2017
Anixter's CEO has admitted to (1) price deflation impacting IP camera sales and (2) not always being 'exclusive' with security integrators. In...
Xandem Next Gen Intrusion Tested on Apr 26, 2017
Xandem's "full coverage motion tracking technology" is unlike any intrusion technology we have seen. We bought their new system and tested it...
Tri-Ed Favorability Results on Apr 25, 2017
Tri-Ed, owned by Anixter, far outranked Anixter, the lowest ranked company in our distributor favorability series. Still, Anixter's ownership did...
Eagle Eye Exec On Mountain Of Servers - VSaaS Growth Analysis on Apr 25, 2017
Eagle Eye VP of Operations, Hans Kahler, posted a picture of himself sitting on top of a shipment of new servers, as a testament to the companies...
Chinese 'Attacking Us From Every Direction', Says US FBI on Apr 25, 2017
"Chinese eating our lunch. Attacking us from every direction" said the US FBI's Deputy Director Andrew McCabe at the ASIS 2017 CSO Summit. .@FBI...
Axis Posts Strong Q1 2017 Financial Results on Apr 24, 2017
Axis posted strong numbers for Q1 2017, after having some challenges in 2016 (Q1 2016, Q3 2016). Inventory levels and overall spending show...
Axis Lowest Cost Outdoor IR Camera M2025-LE Tested on Apr 24, 2017
Axis has lagged offering low cost IR cameras while their Asian competitors have made IR standard even in their most entry level cameras. Recently,...
IPVM First Dean's List W2017 - Thomas Atkinson, Matt Hurly and Fredrik Lundqvist on Apr 24, 2017
IPVM is happy to congratulate and celebrate our first "Dean's List", the top students in our courses. For the Winter 2017 IP Networking course...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact