Vivotek Acquisition Offer From Delta

Author: John Honovich, Published on Aug 10, 2017

One of the largest remaining independent video surveillance manufacturers has received an offer to become majority owned by Delta Group, a Taiwan conglomerate.

Inside this note, we examine the terms of this offer, share feedback from Vivotek management, concluding with an analysis of the potential impact to Vivotek and how this fits with the ongoing race to the bottom and to safety.

*** ** *** ******* ********* *********** ***** ************ ************* *** received ******* ** ****** ******** ***** ** ***** *****, * ****** ************.

****** **** ****, ** ******* *** ***** ** **** *****, share ******** **** ******* **********, ********** **** ** ******** ** the ********* ****** ** ******* *** *** **** **** **** the ******* **** ** *** ****** *** ** ******.

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

Who ** ***** *****?

***** *****(** ******** ** ***** ********) **** ~$* ******* ****** ******* and ** *** ** *** ~** ******* ********* ** ******, though **** *** **** *********** ** *** ****. *** ******* is ************* *** ********* * ***** *********** ************, ****** **** have **** ********* **** ***** *******, **** ** **********, ***** Vivotek ***** ** ******.

***** ******* ********* ***** ********** ** *** ******** ** ***** 3 ********:

*** *******'* ********* ***** ***** * ***** ** ***** ***** and *********. ****** **** ****** ** ** ** ********** *** only * ****** ************ ******* *******, ********** *** ***:

Acquisition **** ********

***** ******* ******* ** ** **% ** *******'* ****** ** ********* 26, **** ** * ***** ** $** ***, * ~**% premium ** *** ~$** *** ***** ***** ***** ** *** deal.

*****'* ******** ********* *** ******* **** ** ** ** ***** 'M&A ********' *** **** ******* ***** ******* "*** *****-***** ************ of [*****'*] ******** ********** *********", ******** * ********* ********:

  • ********: "******* ******* *********** ********* ******* ** ********** * ****** spectrum ** ************"
  • *****: "******** *****’* ******* ****** ******** *** ****** ******** ** boost *** ***********"
  • *************: "******* **** *****’* ********* ************* ******* *** *********** *********** bargaining *****"

Vivotek ********** ********

******* ******** ******** ** **** ** *** *********** ****, *********** independence:

** *** ********* *********** ** ********, ******* **** **** ** an *********** ****** *** * ***** ****** ******* **** *** same ********** ****.

************ ***** ** *********, **** *******:

*** ******* ************ ********* **** **** ****** *********, ***** ** leverage **** ***** *********** **** ***** ********* ********** *** ******** capabilities ** ********* * ******** *** ******* *********.

*** ***** ***** *** ***** ***** ********, ********* ** *******:

******* ***** **** **** ****** ** *** ************ ******** *** our ***** ** ******** *** ******** ************ ********* **** *** changed.

** *** **** ****, ******* ********** *** ********* ******** ** products *** ************* **** ***** ***** ** *** ****.

Financials *** ****** *********

******* ********* *********** *** **** ********** *****, **** * **% CAGR **** *** **** * *****, ***** **** $** ******* in **** ** $*** ******* ** **** (*******'* ************ ******* *********). ***** *********** ** ** ~**% ****** ******* *** **** ~**%.

*** *********** ***** ****** ******* ** * ****** ************** ** ~$270 ******* ***, ~*.* ***** ***** **** *****. **** ** a ****** ********* *** * ******* **** ********* ** **** revenue *** ******* ******** ** ************* ** ***** ******** **********.

*******'* ****** ********* ** ***** **** **** **** **% **** its **** ** ****:

Competitive *********** ** *******

*******, ****** ***** ************ ************* **** **** **** **** *** by *** **** ** *** ******* *** *** **** ** the ******. ******* *** **** ********** **** *** *** ****** the ******* ****** ***** ************ ************.

** *** ***** ****, ****** **** ******, ******* *** ******* to ** **** ** ** *** ******** *** ***** ****** rather **** * **** ****** ** ****** ********, ** ***** cost ******* **** ********* *** ***** ******** **** ***** *** more ********** ***** *** ********* ************ **** ****** ***** *******.

Race ** ******

** ******* *******'* **** **** ** **** ** ** ******* 'race ** ******' **** ** * ******** ** *** **** to *** ******. *********** *********, *** **** *******, *** ****** the **** ********** **** ******* ****** *** *** *********** ** Hikvison *** ***** ** ***** ** ******* ** ***** *** marketing. ******* ** ** **** *** ********* ******* *** ** Canon ********* ******* *** ** ****** *******, ****** '*********' ***** ************ **** *****, ********* **** *** **** * ****** / **** ******* entity ** ******* **** ****** **** **********, *** ****** **** as * *******.

******* ******* *** ******** ***** "**** **** *** *** ******* race ** *** ****** **** ** *******'* ********?" ******** ** repeat *** ***** ****** ***** ********** *** ********** ********. ** do ***** **** ***** *** ******* ********** ********, ** **** are ~*** ****** **** ******* *** **** ********* ***** ***** help **** ** ******** ************* *****. ** *** ***** ****, the ****** ******* **** *******'* ******* ***** ***** (**** ***** than ******* ********, *.*., *** ***** ******** ****** ********* ******** such ** ******* ** ****) ** * **** **** ******* saw ********** ***** *********** *** *** ** *** ******.

Automation *** ***** ************ ************ **** **********

***** ********** *** ***** ************ *** **** ********* ******* ** larger *************, *** *********** ** *********** ** ***** ******* *** remained * ***** **** ** *** ******* ***** ************ ******, as ***** ******* *** ********* ****** *** ******* **********. ******* this **** ****** **** *** ********* ** '***' *** **** devices ******** *** ***** ************ ************* **** ********* *** **** able ** **** ** ********** ** * **** ****** *** significant *******.

How **** ** ****?

** ****** ** *** **** ****** ***** ***** ** **** a **********. *************, *** ***** **** ******** ** * ********* like ********* ********, * ******* **** ************ ** *****, ********* Pelco *** **** *********** **** *************. *******, ** *** ****** that ***** ****** ******* ** ****** *********** ** ******* **********, Delta's ******** ********* *** ************* ***** ***** **** ******* ****** compete ** **** ********** ******.

** ***** ** *** ****, ** ** *** ****** **** of ******** **** ***** **** ** ***** ** ***** ** channels ***** ***** **** *** **** * ****** ******** ** automation *** * ****** ******* ***** ** ****** / **** Vivotek.

****, ***** *****'* ***** ** **********, ** ***** ****** **** to ******* **** ******* **** ***** **** ** * ***** player ** **** *******, ****** **** ******** ** **** ****** products, ***** ***** ******** ***** ****** ******* ********.

Comments (10)

Thumbnail 3

Claudio Almeida

08/10/17 02:38pm

"...******* **** **** ** ** *********** ****** *** * ***** listed ******* **** *** **** ********** ****."

****! **** ****** *** ****...

******* ***** *** *********** **** ***** **** ******* *** ** least *** *****?

John Honovich

IPVM | In reply to Claudio Almeida | 08/10/17 02:48pm

******* ***** *** *********** **** ***** **** ******* *** ** least *** *****?

*******:

***** ********, ******** ** ******** ****/****, *** *** ** *****/********* still ***** **** ***** *****.

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

**** *********, ******** ** ***** * ***** ***, **** ***, still *** ** *** **** *** ******.

***, *********** ***** ***** **** ** ****, *** *** **-******** /********** **** **** ***** *** * **** ****-***.

*** ** ***, * ***** **** ********* ********** ***** ****** but * *** ** **** *** ** ** **** *** the ******** **** *** *******. *** *** ***** ********* *** deal ***** ** ** ******* **** **** ** *** ** a ********** ***** ***** ** * ****** *********** ** ********** staying. ** ********, ** ***** *** ****** **** **** ****** the '**********' ** ******* **** **** ******** ********, ********** ** management **** ******* ****** *** ***** ** **** ****.

Thumbnail 3

Claudio Almeida

In reply to John Honovich | 08/10/17 03:43pm

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

*** *'* ****** *** **** ** ***** ********* *** ******* everything ** **** ******. *** *** ***** ***** ** ***** companies *** ********* *** ******** *********.

*** ********, ********* ******** *****; **** ***** ******** ***, ***, American ******** *** ******

** ***** **** ** ******, ***** ********* ****** *********** **** the ******

*** ******** ******* ********* ********* *** ***** ****, **** ******* to ******* *** ********* ******.

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

Undisclosed #2

In reply to Claudio Almeida | 08/11/17 11:58pm

** ************ ****, *** ** ***** ** *********** ** *** the ********** ** ************ ***** ** *** ******* ****** *** acquired ******* **** ****** ***********. ** ** **** ***** ** made, **** ** *** ******** ** ******* ***** ***** ** fairly ******** *******.

***** ** * **** ******* ***** **** ****** ** **** been ********** **** ********* ******** ****** **** ********** ** *** as ** *********** ************ ***** * ****** ************.

Thumbnail 3

Claudio Almeida

In reply to Undisclosed #2 | 08/14/17 03:12pm

"***** ** * **** ******* ***** **** ****** ** **** been ********** **** ********* ******** "

* ***** *** ****** **** ** **** **** ***** ** "Pelco... **** **** ************* ** ********** ********"

Undisclosed Manufacturer #5

In reply to Claudio Almeida | 08/14/17 03:16pm

*** *** **** ** * ****** ****** ******** ** ******, and, **** ** *** ****, *** *********** **** **** ***********. Delta **** ** ****** ****** **** *-***** ********* ********, *** perhaps ** *********** ******* **** ****** **** ****** *****, ** well ** **** ******* ******* ** ******* **********, *** ** far ** **** *******'* ********* ***, * ***** ****** **** little ******.

Undisclosed Manufacturer #1

08/11/17 08:39pm

***** ****'* **** ** ***** ****** ****... ** ****'** *** that ***** *** ****.

:)

Tim Pickles

SMART Fire and Security Solutions Ltd | 08/14/17 07:21am

*'* ******** **** **** ** **** ***. ****, ** ** all ****, ****** **** ********* *** ********* ** ***** **** - *** **** ** ***** ********* ******** *** ********** ******** model.

**** *** ********* ******* ** **** ** **** ****** **** the ****** **'* ****** ****, **** ** ***** **, **** may **** *** **** *** ***** **** ** **. **** make ** ****** ** ***-**** ** * ***** **** **** should *** ******* ******** ** ** **** ** ** * significant *****.

*** ***** ******** ****** ** * ****** ****** ** ******** not ********** ** *** **** ****** ***** **, *******, * little **** *********. ****** **** ****, *** ********* *********** ** Ademco/Micro-tech ***** ***, **** *** ****** ******* ******** ********* **** next ** ** *********** ** **** * ****** *** ** follow * ** **** ** ****. *'* ******** **'* *** arrogant ***** ******** ** *** **********/*****, ****'* *** ********** ****. They *** * ******* ***** **** **** *** ********* **** but *** **** **** *** ***** ** ******* ********.

Undisclosed #3

In reply to Tim Pickles | 08/14/17 08:21am

*'* ******** **'* *** ******** ***** ******** ** *** **********/*****, that's *** ********** ****. **** *** * ******* ***** **** from *** ********* **** *** *** **** **** *** ***** in ******* ********.

** ****'* ****, *** ***** *** **** ** *** ** an ****************;)

Undisclosed Integrator #4

08/14/17 02:37pm

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

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