Video Analytic Vendor Keeneo Acquired

Author: John Honovich, Published on Aug 03, 2011

In August 2011, French video analytic vendor Keeneo was acquired by UK security provider Digital Barriers. In this note, we examine the details of the deal, the financial positioning of both companies and why this is another sign of the poor performance of the video analytics market.

Let's start by reviewing some basics of Keeneo:

  • Keeneo is a 6 year old company with a few dozen employees and a few dozen customers, primarily in France.
  • The company offers server based video analytic software targeted at criticial infrastructure / physical security applications. Their analytics are licensed on a per camera basis at approximately ~$1,000 - $1,250 MSRP.
  • Keeneo does not sell smart cameras nor encoders. 
  • Keeneo reports integration with a number of 3rd party VMS systems including Milestone.
  • Best comparison to a US company would be Vidient though Keeneo likely raised significantly less than the $30+ Million that Vidient did.
  • In 2010, Keeneo reported revenue of €1.02 Million (~$1.4 Million USD) with a loss before interest and tax of €0.47 million. By contrast, in 2009, Keeneo's revenue was €0.55 million ($750,000) with a loss of €0.70 million.

It appears that Keeneo's net acquisition price is fairly low in the complex terms Digital Barriers set. While a potential payout of €6.5 Million by 2014 exists, only €2.0 million will initially be paid and that will be "payable to the vendors of Keeneo." Out of that initial €2.0 million, 20% will be Digital Barriers shares and the rest will be cash.

Digital Barriers raised £55.0 million and are in the midst of rolling up various security technology companies to create an end to end security technology provider for high end clients (ICX, now a division of FLIR, is a good example of the approach). However, what is strange / different about Digital Barriers is how low their revenue is - for 2010, revenue was only £6.6 million (~$10.7 Million USD). Digital Barriers is a fairly small company itself with very aggresive / risky plans for expansion. See Digital Barrier's 2010 Annual report for more details.

Analyzing the Deal's Impact

Here are our key takeaways:

  • Low Revenue - Unsurprisingly, Keeneo's revenue was rather low - under $1.5 Million USD. Somewhat surprising was the extent of their loss (over $500,000). That said, such numbers are in range from other private analytic companies we are tracking.
  • Low Acquisition Price - While it is hard to determine how much Keeneo's founders and investors received from this deal, we suspect the net amount is fairly low and the operational targets will be challenging to hit.
  • No Name Acquirer - Not surprisingly, the company acquiring Keeno is a relatively unknown, unestablished firm. We do not see much demand from large defense contractors / technology developers (similar to the Vidient auction).

While Keeno was relatively unknown in the Americas, we suspect their technology and market success (or lack thereof) is fairly typically of the dozens of small analytic providers around the world.

Comments : PRO Members only. Login. or Join.

Related Reports on Acquisition

Avigilon Favorability Results 2019 on Jan 15, 2019
Since IPVM's 2017 Avigilon favorability results, the company was acquired by Motorola and has shifted from being an aggressive startup to a more...
Motorola Acquires VaaS / Vigilant LPR on Jan 08, 2019
Less than a year after Motorola Solutions spent a billion to acquire Avigilon, the company has made another major acquisition spending nearly a...
CyberExtruder Face Recognition Profile on Jan 04, 2019
CyberExtruder offers 3D modeling face recognition software that they say provides quicker and more accurate matches than other 2D face recognition...
OnSSI Co-Founders Are Out on Jan 04, 2019
OnSSI's co-founders, Gadi Piran and Mulli Diamant, are out of the company just a week after they were acquired by Qognify. This breaks the common...
DirectView Aims To Be A Video Surveillance Power Like Tyco on Jan 02, 2019
DirectView is a publicly traded US company that tells IPVM that it has ambitions to be the next ADI, Anixter, or even Tyco. In this note, we share...
US Gov China Ban Rules Process, SIA Lobbies Against 'Blacklisting', For 'Risk-Based Protocol' on Dec 27, 2018
Details have emerged about when the rules implementing the federal ban on Hikvision, Dahua, Huawei and others will be made public for official...
Arecont Vision President Resigns, Ex-Pelco CTO Takes Over on Dec 24, 2018
Arecont Vision's President and long-term executive Raul Calderon is exiting the company being replaced by ex-Pelco CTO Shane Compton. In this...
Qognify Acquires OnSSI, CEO Pitches Exciting Future on Dec 23, 2018
Qognify is a VMS / PSIM company, with a tumultuous 2018, that has just acquired a VMS company (OnSSI) who itself acquired a VMS company in 2015...
Open Options Acquired By ACRE on Dec 17, 2018
ACRE is doing deals again. A year after they sold Mercury, they are buying another access control company - Open Options. In this note, we...
Imperial Capital Security Investor Conference 2018 Review - ADT, Resideo, Alarm.com, Arlo, Eagle Eye, ACRE, More on Dec 14, 2018
Imperial Capital Security Investor Conference is an event matching industry executives with financiers that frequently leads to future funding...

Most Recent Industry Reports

Cable Trenching for Surveillance on Jan 21, 2019
Trenching cable for surveillance is surprisingly complex. While using shovels, picks, and hoes is not advanced technology, the proper planning,...
Milestone Favorability Results 2019 on Jan 21, 2019
Milestone's favorability moderately strengthed, in new IPVM integrator statistics over their results from 2016. While the industry has been...
Intersec 2019 Live Day 1 - Massive China Presence on Jan 21, 2019
There’s a massive presence from Chinese or China-focused video surveillance firms, chiefly Hikvision, Dahua, Huawei, and Infinova, at...
The IP Camera Lock-In Trend: Meraki and Verkada on Jan 18, 2019
Open systems and interoperability have not only been big buzzwords over the past decade, but they have also become core features of video...
NYPD Refutes False SCMP Hikvision Story on Jan 18, 2019
The NYPD has refuted the SCMP Hikvision story, the Voice of America has reported. On January 11, 2018, the SCMP alleged that the NYPD was using...
Mobile Surveillance Trailers Guide on Jan 17, 2019
Putting cameras in a place for temporary surveillance where power and communications are not readily available can be complicated and expensive....
Exacq Favorability Results 2019 on Jan 17, 2019
Exacq favorability amongst integrators has declined sharply, in new IPVM statistics, compared to 2017 IPVM statistics for Exacq. Now, over 5 since...
Testing Bandwidth Vs. Low Light on Jan 16, 2019
Nighttime bandwidth spikes are a major concern in video surveillance. Many calculate bandwidth as a single 24/7 number, but bit rates vary...
Access Control Records Maintenance Guide on Jan 16, 2019
Weeding out old entries, turning off unused credentials, and updating who carries which credentials is as important as to maintaining security as...
UK Fines Security Firms For Illegal Direct Marketing on Jan 16, 2019
Two UK security firms have paid over $200,000 in fines for illegally making hundreds of thousands of calls to people registered on a government...

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