Stanley Security Acquires 3xLogic, Kushner Becomes Product President

By Dan Gelinas, Published Sep 10, 2018, 09:28am EDT

Stanley Security acquired 3xLogic a few months ago. However, the company has still not officially publicly announced it, leading many to wonder what happened.

IPVM Image

[link no longer available]

Now, 3xLogic CEO and new Stanley Security Products & Solutions Global President Matt Kushner [link no longer available] spoke to IPVM about the acquisition and how they are reorganizing Stanley's product's business.

In this note, we review:

  • What the goal of the acquisition was
  • What Stanley Ventures is
  • What this acquisition means for 3xLogic dealers
  • What the acquisition means for 3xLogic and Stanley
  • What the terms of the deal were
  • What 3xLogic's OEMing of Hikvision means as the US Gov't ban deepens
  • Challenges

Company ********

******* ******** ** **** of************&******, * ******** ****** company **** * ********* of ~$** *******, **** 2017 ***** ******* ** $11+ *******, **** **** under $* ******* ****** from *** ******** ********, as **** ******* ********* **** ****** ***********:

IPVM Image

What *** **** ** *** *********** ***

****** ********* *******'* ********, the *********** **** ****** 3xLogic *** **** ******* [link ** ****** *********] (previously *** *********, **** Chairman, ******** ************ *********/***) on ***** ** *** Stanley ******** *** ********* (SPS ) ** *** new ****** *********.

******* **** ** ***** all *** ******* ******* product ******** ******** *** increase **********:

***** ******** *** ********** product ********* **** **** silo-oriented. **** **** ************ and ***** ************ **** left ** *** ** individual ********** ****** * $13 ******* *******. *** consequence **** **** ** that *** **** ** innovation **** ******* ***** businesses ** **** ******** to ******* ** ***** and ************ **** **** struggle ** *******. ** was ******* ** *** executive ***** **** **’** either ** *** ******* business ** ***—** ***’* be ***** ******** ** the **** ***. ** need ** **** ***** products ****** ***** *******.

******* **** ** ****** similar ***** ** ********* and *********. *******'* **** is ** ****** *** innovation:

** * ****** ** creating *** *** ******** and ******* ***** ******* businesses ***** *** ********** group, ** *** **** the ******* ** ******** 400+ ********* ** *** which *** ** ****** of *** *********. ** addition ** ******** **** division, ******* **** ******* a******* ********************* **** ** *** brightest ********** *****. ***** are ***** ********** *** specialize ** **, ******* Learning, ******** **** **********, Robotics, ***, ***** *** other *****-******* ************. ***** DA ********* **** ** used ** ****** ** getting ******** ************ ******** in ***** ******** *****. With **+ ******** **** scientists ** **** **, we *** **** ** accelerate ******* *********** ** AI ** ******* ******** within *** ********.

What ** ******* ********?

** ******** ** ********* 3xLogic *** *******, ******* also ******* **** *** divisions, **************** ********. ******* **** ******* recognized **** ****** ** break *** ** *** old ****** *****, ***** effectively *** ********** *** from *** ***** *** technologies.

******* ** ********* ** developing *****-*** ********** *********; to **** *** **** have **** *********** ******* Ventures, ***** ******* ** to ***** *****-*** ********** to ******* **** *** outside. ******* ******** *** taken * ****** ** positions ** ********* *** complement *** ****** *** the ******.

*** ********** ***** ***** some ** *** ********** partners ** *** ******* Ventures *********. **** ******* is ***** ** "********."

IPVM Image

  • ******** ************* * ****-**** ******** System (****) *******.
  • ****** *************** ************, ** *******-*** batteries.
  • ******** ******************** ********* *** ***** grid ***********/***********.
  • ******* * **** ****** technology ******* **** * pill ********** *****.
  • ********* ******* ******** * **** security ********* ********** ***** that ***** ** ****** with ***** ******.
  • ******************* ** **********-***** ***** management ******** *** "******** remote *******, *****/************ ** logistics **********."
  • ******************* * ***** ******** vehicle ******** ********.
  • ********** * ************* ******* that *********** ** "***** enabled ** ***** *************** (NC) ***** ****** **** transformational **********."
  • ****************** ** ******** ******** technology.
  • ************** ** ********** ******* (access, *********, ****, ***, surveillance, ***.) ******-********** ********.
  • *** **************** ********, ********, *** training *** *** ************ industry.
  • ****** ******** ***************** * "********* ************* Electrophotographic ******* (****)," **** "offer[s] * ****** *********** to ********* *******."

*** *** **** ** all **** **********, ******* says, ** ** ***** the ******** ***** *******. Specifics ** ******* *** that **** ** **** is ***** **** ***** for ***.

What *** *********** ***** *** ******* *******

******* ** **** ********** and ************, ******* ******** for ******** ** ******** and ********* ******* ***** partners. *******, ******* **** that ***** **** ** a "********" ******* *** integrator *** ************ *****.

*** *******'* *******, ***** on *******, **** ***** they *** *** #* global ******** ******** *******, painting ** ************ ******* for ***** *** ***** compete:

IPVM Image

****'* **** ********** ****** on ************ **** * ******** of *********** ** ******* with ******* *** **** those *********** **** *******'* poor ******* *** ************** problems ** ***** ****** to *******'* ***************.

*******, ******* **** ***** will ** ** ****** edge *** ******* ********** Security *** ***** ** will **** **** ** it ** * *** for ********:

*** ** ********* ** our ****** ********; ***** will ** ** ******* treatment *** ******* ****** other *******. ***** ** afirewall ******* *** ******** ******** *** ***. It was the same thing at Schneider Electric with Andover Control. We know the importance in managing the channel and we’ll be diligent in doing so. [emphasis added]

What *** *********** ***** *** ******* *** *******

******* **** **** **** companies **** **** ** gain **** *** ***********:

**** *******’* ********, *** leadership ****’* **** ******** will ***** * ******** of ************* *** ********* to ***. *****’* ** much ** ** ********* within *** ***** ****** SPS ********. *** *******, we’ve **** **** ****** and **** ***** ** cross-leveraging *** ****** **** our ****** ******** *********.

3xLogic *** *********

******* **** **** *********. However, ******* **** *** U.S.*** ******* *********** ********** **** ** not ** *****:

**** ******* ** *** question ** *** ***… No ******; ** *** cameras **** *** *** one ***** ********. ******* are **** **** **% of *** ******* *******. The **** ** *** revenue ** ******* **** our ***** **** ** recorders, ******** ****** ******* and *** ***** ***** service: ***** ***** ************, Vigil ****** **********, ******** Cloud ****** *** ******, our ***** ***** ******** Intelligence ********.

*******, ** ***** ** if ***** **** ************** ** the ********** ****** ********* **** selling ** *** ** government, ******* ***** **** to **** ******* ********* entirely.

Deal ***** *** *********

******* *** *** ******** the ***** ** *** deal. *******,*** **** ******* ********* **** ***** ** ~$45 *******, *** ***** the******* *** ********* ** grow, ** ***** ******** 2018 ******* ** ** in $** ** $*** million *****.

**********

****** **** *** ** easy *** ******* *** Stanley. ***** *** ** many ***** ******** *** Stanley ** **** * big ******* **** ************ and ********* **** **** be *********** *** ******.

Vote / ****

Comments (23)

Yawn. Sounds like 3xlogic just needed money. They always seemed small staff wise, but presented theirself as large. 

Just another company giving into acquisition. Seems to be little to no more of the success takes time to build.

Agree: 2
Disagree
Informative
Unhelpful
Funny

Why would you buy someone who doesn't OEM their product?

Agree
Disagree
Informative
Unhelpful
Funny

Wow .. quite a bit of wing-flapping to create a big cloud of dust in that press announcement. 

The comparison to "just like Schneider" is fairly lame ... the Andover product line is pretty much end of lifed or nearly so and there is really no momentum or goodwill enjoyed any longer by Schneider from an access control standpoint by having acquired Andover Controls. Schneider has been burdened by trying to hold on to accounts with the legacy Andover and CSI systems while still trying to move forward with building controls and security integrations involving their new products that do not necessarily play well with the legacy systems.

Also, the "no special treatment for Stanley branches" statement .. to Mr. Kushner -- this does not work well, i.e. your Stanley branches competing right there in the same sand box as your independent dealers only results in friction and often times results in one or the other leading with Stanley products/solutions but actually delivering another once all is said and done.  

The fine line between being a manufacturer on one hand and an integrator on the other is a tough one to manage.  Decisions made to benefit one often have a less than favorable impact on the other.  

Agree: 3
Disagree
Informative: 1
Unhelpful
Funny

Ask the legacy Andover / Schneider integrators about their annual Pelco budget requirements.  They got a gun put to their heads to sell Pelco as a percentage of their Schneider sales even as the Pelco ship began to sink- or jeopardize their future relationship / Schneider discounts.  You’d have to be blind not to see, and / or ignorant not to expect, a similar model coming together with regard to SPS & CSS, and ultimately Stanley Ventures.

Agree: 2
Disagree
Informative: 2
Unhelpful
Funny: 1

I would be very surprised if the 3xLogic revenue was $60 to $100 million. My impression is they were in the $30-$50 million at best. 

Agree: 5
Disagree
Informative
Unhelpful
Funny

So who makes their non-HIK cameras?

Agree
Disagree
Informative
Unhelpful
Funny

Do they even have any non-HIK cameras? I couldn't find any. And all their China to US camera shipments have been from HIK. 

Agree
Disagree
Informative
Unhelpful
Funny

I think some were OEM’d from CPRO, as they had a camera that was identical to DW’s original CAAS platform (edge-recording).  

Agree
Disagree
Informative
Unhelpful
Funny

.

Agree
Disagree
Informative
Unhelpful
Funny

Another Canadian company gets bought! 3xLogix was actually born in Victoria BC! Good for them!

Agree
Disagree: 1
Informative
Unhelpful
Funny

The company bios all sounded plausibly high-tech; pill-popping nano drones etc, until I got to Intransa Viakoo...

Agree
Disagree
Informative
Unhelpful
Funny: 2

Undisclosed #7.

While I know it is fun to be snarky, you're throwing shade using a 5-1/2 year old innuendo that has nothing to do with the situation. Intransa is owned by a separate company from Viakoo and they still sell the server & storage appliances into the surveillance marketplace. Viakoo is a Software-as-a-Service company innovating in the space of service assurance for physical security, something that Intransa never was.

Your anonymous comments are just trolling without offering useful insight to anyone.

Agree
Disagree
Informative
Unhelpful
Funny

...you're throwing shade using a 5-1/2 year old innuendo that has nothing to do with the situation.  Intransa is owned by a separate company from Viakoo...

Nice.  

But does it have actually different owners/mgmt?  

Specifically, Bud Broomhead, CEO of Intransa, when this communication informing customers that they were SOL with respect to in-force Intransa contracts, but could “breeze” thru the process of repurchasing equivalent support thru the nascent, and apparently unconnected Viakoo.

No number of corporate maneuvers can transfer ones personal reputation.  

 

Agree: 4
Disagree
Informative: 2
Unhelpful
Funny

Summary, your point is you got burned by a company going under, leaving you with permanent cynicism which is clouding your ability to assess Stanley as a company and their strategy.

Agree
Disagree: 1
Informative
Unhelpful
Funny

...burned by a company going under.

True, companies go under all the time.  

But the skipper doesn’t usually abandon ship, whilst loaded with passengers, by using the captain’s wheel as a life preserver.

Agree: 1
Disagree
Informative
Unhelpful
Funny: 3

Again, innuendo from 5½ years ago. This position may make you feel better but, deep down, you must know is naive. It presupposes that there was some way to save that company when there wasn't. If you were a customer hurt by that, I empathize with your sense of getting a raw deal but the alternative was never getting support again.

Regardless, this cynicism of how Intransa ended and Viakoo began is clouding your assessment of business and technology today. This snark has caused people here to assume Viakoo wouldn't survive but it has and the list of customers keeps growing. Renewal rates are high. Stanley and other integrators are investing in it for some reason.

You may think you know better but you run the risk of looking foolish. 

 

Agree
Disagree: 1
Informative
Unhelpful
Funny

I see a small similarity with this scenario and with GVI closing their doors and Razberi Technologies forming; back then the GVI Razberi was no longer supported by Razberi Technologies, but the AutoIP cameras were.  Plus, the entire sales and tech team migrated from GVI to Razberi.

Agree
Disagree
Informative
Unhelpful
Funny

I know I'm talking to a hostile crowd here but I must correct a misperception. Bud was NOT the owner of Intransa. The owners were a collection of VC and Equity funds along with a broad smattering of individuals. Bud was an employee, albeit the CEO. I too was an employee though a relatively late comer to the organization.

It was the investors who pulled the plug on Intransa rather than put more money into it.  

I realize that people might not appreciate the subtleties here but the fact of the matter Viakoo is a different company with different technologies and different investors. Just the same CEO and a few of the people. There was no slight of hand however it might be perceived. 

Agree
Disagree: 1
Informative
Unhelpful
Funny

Bud was NOT the owner of Intransa.

I guess Bud’s a nice guy after all.  I mean he was CEO for what 6 years or so, in a high tech startup and he never demanded a stake, even when new funding came in.  

Did he start Viakoo before Intransa actually went under?

You may think you know better but you run the risk of looking foolish.

U7 has been made to look foolish in many discussions, IMHO...

 

Agree: 1
Disagree
Informative: 1
Unhelpful
Funny

It was the investors who pulled the plug on Intransa rather than put more money into it.

And why did the investors pull the plug? Was it perhaps because they felt the executive hadn't built a viable and sustainable business with a clear path to profit?

If you were a customer hurt by that, I empathize with your sense of getting a raw deal but the alternative was never getting support again.

Right, because the OTHER alternative of the company actually being healthy and able to provide ongoing support for its products was certainly not going to happen. I'm sure those customers that purchased products, especially towards the end of the run, were clearly informed that they might not be able to get future support as expected without paying even MORE money. Or, was that omitted? Let us know, you seem to have a lot of good inside info on Intransa.

Agree
Disagree
Informative
Unhelpful
Funny

The good news is that Matt is a smart guy when we worked together at Honeywell. The bad news is that every conglomerate that has tried to walk the razor blade of being a manufacturer and integrator has failed until they dumped one side. 

HONEYWELL struggled for years competing with their integrators and finally took off when Roger Fradin dumped Honeywell Security Services and focused on manufacturing. TYCO did the same until they dumped it all on JCI, who is still trying to walk that thin sharp line. 

It is true that Integration divisions probably hate being forced to buy their parent company products but their competitors distrust the manufacturer no matter what they promise. 

Good luck Matt!

Agree: 4
Disagree
Informative: 2
Unhelpful
Funny

I would not have led with 'similar roles' at Schneider and Honeywell!  Unless immediately followed by 'learned from the mistakes of the past..." 

I do wish him well and hope this will be the exception to the rule of unsuccessfully executing a firewall between mega manufacturers, their integration divisions and their integrator customers.

Agree: 1
Disagree
Informative
Unhelpful
Funny: 2

It's funny to Read about the supposed "firewall" between 3xlogic and their channel. If you go to their Security Solution Center in Indianapolis you'll see nothing but 3xlogic set up for all of their "demo lab" rooms. All of their NAMs are trained on and lead with 3x for larger integrated / Enterprise opps or Hik NVR/ HVR on the low / price based criteria.

While I never saw anything in writing, I was told by several of those NAMs that they got the largest % off MSRP from 3x on deals in their ordering system, without needing project pricing authorizations. I'm not convinced the channel would / will get that same treatment

Agree
Disagree
Informative: 2
Unhelpful
Funny
Read this IPVM report for free.

This article is part of IPVM's 6,910 reports, 923 tests and is only available to members. To get a one-time preview of our work, enter your work email to access the full article.

Already a member? Login here | Join now
Loading Related Reports