Why Dahua Should Acquire Pelco

Author: John Honovich, Published on Jun 18, 2014

In 2013, negotiations for mega Chinese manufacturer Hikvision to acquire Pelco broke down. At that time, we argued that it was a bad fit.

However, there is another mega Chinese manufacturer, who would make perfect sense to acquire Pelco.

In this note, we explain why Dahua's weaknesses would be perfectly complimented by Pelco's strengths and how Dahua has the resources to make this deal.

** ****, ************ *** **** ******* ********************* ** ******* ***** ***** ****. ** **** ****, ** ****** **** ** *** * bad ***.

*******, ***** ** ******* **** ******* ************, *** ***** **** perfect ***** ** ******* *****.

** **** ****, ** ******* *** *****'* ********** ***** ** perfectly ************ ** *****'* ********* *** *** ***** *** *** resources ** **** **** ****.

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

Dahua *********

******* ***. ** ****, **** *** **** ***** ******* **** Axis *** **** ***** ******* **** ******** *** *******. ****'* a ******** ** ***** * ************* *****:

*****'* ****** ************** ** ****** $* ******* *** *** **** have ~$*** ******* *** **** ** *** ****.

**** ******** **** ** ***** ******* ** ***** *** *** rest ******* ***** ********* ** ************* **** (*** ** *******, IC ******** *** *-*** *** *** ** *** **** **** known).

***** *** * ********* ******** *** ** *****, ***** ***** inexpensive *** ** ** ******** (******** ***** **** *******).

Dahua **********

****** ***** ** * *******, ***** ********** *******, **** ** have ****** *********** **********:

  • **** **** ***********: ****** ***** *****, **** ****** ** *** ******** (********** outside ** *** ************ ****) **** ** **** **** ***** even **.
  • ******* ******** ***** ***** ******* ** *****: ***** *****'* ********** ** **** ******* ** *****, **** have *** ********* ***** *** ************ *************.
  • ********** ** **** **** **** ******:*****'* **** *** ************ ****/ *** ******* ******, ****** ** **** ********* ** ****** ******.
  • ********** ** ***** ******** ******:*****'* ******* *** ****** ** **** **** ********* ** ******** China *****, ******* **** ********** ** ****** ** ******* ****** / ********** ********.
  • ******* ***** ******** ********: ***************, *** *** **** ******** * **** ** ***** ***** and ******* ************, ***** *** **** ****** ** *** ******** American ******.
  • ** *** ******* ** *** ** ********: **** ****** ** *** ********** *** ***** *********, *** of *** ****** ***** ********* ****** *** *********.

Complimented ** *****'* *********

*****'* ********* ********** ***** ***** **********

***** ** **** **** ***** *** ***** ****** ********* ** surveillance *** *****, ********** ** ***** *******. **** **** * well ********* ******** ***** ******, ***** ******** ******** ****, ********** in *** *** ** **** *** ******** ******, ***** ***** deployments *** *********** ***-********.

**** *****'* **** ****** ******** ****, ***** ***** ** * natural **-**** *** ********* ***** ****** ** ******. ***** ***** market ** *** *** **** ***********, ******* ***** ******* *****, mature ** *** ***** *******.

*****'* ******* ** ***** ****** ** *** $*** ******* ***** so ** ***** ******** *****'* ******* **** ** ~**%, ****** them **** ********* ** *** ******** ***** ******.

Dahua *** ****** **

*****'* ****** $* ******* *** ****** *** *** ** ***** to ***** ***** ******** **** *** ********** ** ****** ** acquisition. ** ********, ************* ****~$*.* ******* *** *** ***** ** ****, ***** *** ***** ~$500 ******* *******. *** ***** ***** ************* ************* ***********, * **** ******** ***** *** ** ****** *** less (*** $* ******* ***).

***

******** * ***** **** ***** *** ******* ** ** ********* and ****** ***********. ***** *** ** *********** ** ********** ** its ******* ************* **** *** ****** * ****** ***** *** ******* a ****** ************* ***** *** ********* ************, **** **** *** happen. ***** ******** ** ***** ********** ** ***** *****'* *********.

Comments (23)

*** ******** ***** ***** ** ******** ******** ** ***** ** bought ** * ******* *******. *'* **** ***** ** ** a *** ** ********** *** *** *********** ******- **** ***** change ** ***** ****** **** ***** *** *** ***** ******** concerns ******* *** ** *** ***** **** *** **** ** the **** ******.

***** ****** ********* ** ** *****-********* *******

******* ******** ** *** ******** ******** ******* ********* ** ** sell ********** ** ******** ********* **** **** **** ** ** blocked ** *** ****.

****** ***'* *** ****** ****, **** ********

******'* **** **** *****

**** *****. * ** *** **** *** ****** *** ********** would ** *****.

***********,

**** ** * ******* ******** ********** *** ********* * ******* of **** * ****** ***** ********* * ******** *****/***** *******.

** *** **** ** ******, ** ************* ** *** ******* was **** ******'* ***, *** ********, ** ** **-***** ** the *** *** ******* ********* ***** ****** *** *** **** reluctant ** ***** ********. **** ** *** *** ******-******** *********** was *********, *** ****** ****'* ******* ** *** ****, ***.

*** *.*. ********** ** ***** ** *** ******* *** *** founder - *** ***, ***** **** ****** **** ****** *** installing ******* ** **** ** *** **** *********. ** ******** bought *** ******-******** ******* ******* ***, ***** * *** ******** pains, **** **** ****** ** ** ******** ********. ******* ** not, ******* *** ***** ** ****** *** ******* ***** (** have * ****** ******), *** ***** ** ****.

*** ****** ******** *** ****** ******** ** *** *********** ** data *****; ********* *** **** *** ******* ***** ** *** years, *** *** **** **** ******'* ********* *** ************ **** are ******** ******** **** ********* **** *** ******** **************. ******** Pelco ******** *** **** ******** ** ******** *****, *** **** could ** **** **** * ***** ********** ** *****'* ********** products **** **** ***** ******, ******** ** ** ********* ** obtain **** *********** ******* ****** ******* ** ****.

** ***** ** ****** *** - ***** ******** ***** ** installed ** ******** **** ****** ** ******** ****, *** ** could *** **** ******** ** ******* *******, **** *** ****, etc.. * ***** ***** * *****-***** ******* ***** * *** of ***** *** ** ******* ** ** **** ** ** would ** ******* ** ** *******.

******* ***** *** "**** ****" *** ******** ** ****** ** brokered ******* **** ******* *** *** ****** ********? ;-*

** ********: ***** ******* ** ** ****** ********** **** ** Zhejiang ***** ********** **., ***.'* *** *** ********, ** ****** (or ** **** ****** **?). **** ** ** ***** ********* anything ********** ***** ******* **** ** * ***** **** ****** acknowledged ******** ** *** **** *** ***** *** *.*. ********** started *********** ***** *** ******** ** ******, ** *** **** little-known.

***, *** *** ** **** ******** *** ********** **** ***** last **** ** ******** ******** ** ********* ****************.

*'* **** ** ***** **** **** ***** **** ***** *** all ********. ***** ***** **** * **** ****** ***** ******** presence, *** **** **** **** *********** ****. **** ***** ** a **** ****. ***** ******* ****.

** ** *********** ******** ** * *********/***** ******, * ***** certainly *** **** **** ** ******. ***** ** * *********** part ** *** ******** *** **** ****** **** ***** **** reject **** *** ** **** **** ******* ********* **** *****.

***'* *** **** ******* **** *** ********** ******** **** **. Buy ******** ** *** ******, *** ***** ******* *********. ****** using **** ** ******** "******".

*** **** ***** **** ***** ***** ** ** *** ************. That's **!

*** **** ********** ** **** **** ** ******** ************ *** competitors.

******* ********* ************* ****** ** ** ****** ********. * ** ******* ** on ********* ***** *** **** *** **** ** * *********.

***** ** ** **** ** *** *** *&* ***** **** in **** ***** ** ******* *** **** ****** ** ****** activist ************ ** *** **** ** ** ****.

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

*********** ****. ** ******* ********* ** **** **** ** ** a ****** ******** *.*. ***** ** * **-** ***** ****** ownership ** **********? ***, * **** **** ***** *** *********** in *** ************* ******* ****** *** *** *.*. ****** ***** and *** *.*. *** ***** *** **** **** ************.

**** ** *** *********** ******* ****** *** ******. *** *** (United ****** ******** - **/** ****** *** ******** ******) ****** ESA (******** ***** ******, ***** ****** ** ** * ********** of ** ******** ********* *** ** ********* ** ********** ** France *** ************* ** *****).

**** **-****** *.*. ********* *** *** **** *****-******** **** ****. It's **** ** **** *** **** **** *** **** ******* at ***** ** ****. ****** ***********? ***. ****? ********** ***. At ***** ** **** ** **** *** *** ********** *** is ****** ** **** ** *** ***** ****** ********** ** charge *** ******* ****.

*** ** ***** ***. ****** ****** ************ ** *********** ** los ******** ******* ** ***. ** *****, ** ****, ** Corea *** *****, ***** **** ***á ********* * ********, *** violaciones * *** ******** *********** *** ************ ******* * ********* en ** ****** ** ** *** *** ******** * *******.

** *****: *****'* ******** ********** ** ***** **** **. ** we *** **** **** ***** ***** ****** ********** ** *****, we **** *** ******* *** ******* **** *** ** ******** their **********'* *********** *******.

**** ******.

***** ** ***** **** ** *** ***** ** ****** *** ****** *************** ***** ********* *********, *** * ***'* **** ** **** track **** ********** **** * ********* ******* ***** ******'* ** tolerated ******. ** *** ******* ******* ** ******* ********** ** desired. *'** **** *** * ******** ******** **** *** ***** of **********.

******, ****** * ***** ******* ** ******** ****** - **** a ******* ******* ****** ***** ** ****** *** **** ********* from * ****** ******* ****** *****. ********** **** *** ******** how *********** ************* ********* **** ******.

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

***'* ***** **** **** ** ******** ******** ****** - ** it * **** ** * *** ***? ***.

****,

**** *'** **** ******, ***** *** **** ********** ** ***** industries - ******** *********** ***** *** *** *'* **** ******** with. * ***** ** ***** ** * **** *** *** would **** ***** ***** ****** ** *** ******* ****** ******** politicians *** *** *** ** **** ***.

***** *****'* ******** *********** *********** ** ****** ******. *** **** majority ** ***** ********** ******** *** ****** ***'* ** **** assembled ** *****, ** ***** *** **** **** * *** at ***** *****.

**** ** ********* **** ** ***** ******* **** *********** ******* of ****** ******. *** *.*., *** ****** ** *****, ******** manufactures **** ****** ** *** ******** ** ***. ********** **** components ** ************* ** ******** ********** *** ************ ********. ** the **** ****, ***** ******** ** ************* *** ** **** in *** *.*. *** **** ** * **** ***** **** of *** ************* *******.

**, ** *******, *****'* ********, ****** ********** *** ******, *** built ******** - ****** ** **** ******. * ***** *****'* purchase ** ***** ***** ****** **** ******* **** ****. *** Pelco ***** ** *** ****** *** ******** ** ***** ** product ******. ***** ******* ** ** ************ ******* ** ******** a ************ ** ****-******* ******** ** **** *********** ******, ********* Pelco ****'* **** **** ** ***** *** **** *****.

****, *** ******** ** *** *******... ** ** **** *** anyway?

**** *** *** ****** ******** (*** **********)...?

*** ******* ******** ********* **** ****, ****, ***. **********/************* ** USA ** *** *** **** **** **** (****?) ** **** in *****. *** ** **** ***** **** **** *******, * think: ** ******* ** *** ************ ****** **** **** ***********!

*******, ** ** *** ***** ********** ** *******? ****, *****, AMD, ****** **********. ******** *** ****.

*****, ****, *******, ***...

*** ** *** *** **** ** *** * *** **** a ******* ***** **** **** * "*****" ***.

** *** ** * ****, ***** ** ***** ******** ** USA. *** **** ** *****. *** **********... ***** **** **** from? - *** ***** *****, * *****.

*******, ** *** **** ** ** * ******** *** * trusted *****, ******* **** ******* *** **** *** ******* + availability ** ***** *** ********** ** *********.

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

** ***** ** * ********** ****, **** (*** ** **** this *********, ***),

** ****'* **** **** **** ***** ********* ******** ***** *** that ********* ****** ******. ****** ***'* **** ** ** ******* another ****** *** ***** *****. *** **** ********, *** **** questions, *** **** ********.

******* *'* *********** *** ******* *** ***** ****** *** ****** no ************* ** *********** **** ** *** ** ** **** I **** "*** ********" *** *** ******, ****'* **** * was ********* **. **'* *** ****** ****** ** ****** **** any ************ *** ***** ** ********* ********** **** ******* *********. France ** ** *** **** ** "**********" ********* ** ***** but ***** ** ** *****.

***** ** *** * ******* ** *** **, **** *** a (****)***** **** ** **** ****** ******* **** ********* **** stolen *** ************ ******** ** ** ********* *** *********** *** many ****** ********* ** * ******* *****. ** *** ***'* know **** ** *** *** ****** ****** ** **** ***** and *** * **** ******** *** **** **** ****.

*** ** * *******, ***** *****'* ********** *** ********** **** the ***, (******* ******* ********** ****) **** ****** ** ******* AT *** ***** *** *** ** *** ******* ** ***** hacking ****** *** **** **** **** ******* **** *** **********.

************* ***** ** *** ****** *****-********* *** *********** *** *** experience ** **** "*****" *** **** *** ******* ******** ** the ****** *****, **** ** ** ************* **** *** ********* earnings.

***** *** ********, *** ********** *****.

****** *** *** *** ********** ***** ****** *** ****. **** were ****** ** ******* ************* ******** ***, * ******* *******, last ****. *** **** **** **** ****** ******** ********.

******, ****** **** *** ********* **** *** *****.

*** ***** ******** **** ***** ******* / ******** ********* ****** will ** *********** *******.

****, ** **** ******* ******* ** ********** ** * ***** ************* ******** ******* ** *******?

**. * ***'* ***** ****** ****** ***** ******** ** ******** to ****** ***** * ******** / ************* *******.

** * **** *** **** *****, ***** *** * ***** array ** ********** (*** *********) **** ******* ***** ******* ******* from ********* * ****** ******* *****.

* **** ********** **** **** ***** ******* ** *** *** have ***** ********* *** ******. *** *** ***** ******** ******? Do **** **** * ****** ***? * **** *** ***** products, *** ***** ******** ** *** **** *****. ** **** been ***** ***** *** ********* ******* **** ** ******** **** success.

** **** **** *****'* *** ******** *** **** ***** ** use ***** *** ********, *** **** *** **** ******* ** functionality *** *** *** ****** ********* *** ** *** ****. Their ****** *** ** ***** *** * **** **** ****** the ****** ** *** **** *** ***** ******** ******* ** is ****** **** ****.

** ***** *** **** ******** ******, **** ** ***** ** a ***** *******.

* ** ************ **** *** ***** ******** ************ ** ** Witness ** ******* ******* ******* ******** ******* * ***'* **** for ***** ******* ********* *** *** **** *** *** ******* from ****. * ***** ***** ****** *** *** *** **** disappointed. * ****** *** ***** *** **** **'* ***. ** least ***** ******* ******** **** ****** ********* ** ****** ******** is *****. * *** **** ************* ***** **** ******* ** an ***** *** **** ***** ** *** ** ******** **.

* **** *** ***** ******* ******** ** ********* ***** *** playing ** ****. *** **** ****** ** *** ***** * choose *** *******, *** ****/***** *** ** ***** ** ** one **** *** ***** **** * *********** ****** *** *** can **** *** ******* ******* ** ****. **** *****, ** really ** ******* ** *****-******* ******** ** *** ***, *** once ******** ** ****** ******* ********. ****** ** **** ******** how ** **** **** *** ******** ***** ** *** *** when ******** ****** ***** *** ******. ** **** **** *** is **** ********* *** ***** ** **********.

*** ******: ** ****** ************* ******* *** ****** ************ *****,*********** ***** * ******* ***** / ******* *******. ** **** take ***** ** ***** ***** ***, **** ** **** *** do ** *****.

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

***** ****** **** **** ****. * ** ***** ** ******* about *** ***** **** ** ******. ***** **** ***** ** a ***** *** ** ** *****. *** *** ******** ********. Good *** ******** ******** **********. ***** *****.

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