Would a Hikvision / Pelco Deal Make Sense?

Author: John Honovich, Published on Feb 05, 2013

A persistent industry rumor says Hikvision and Pelco are in talks to do a merger / acquisition. Who knows the truth. Even if there are some talks, that does not mean anything will come of it.

In this note, we examine if it would make sense. It might happen, it might not but if it did, would it be a good deal and for whom?

* ********** ******** ***** **** ********* *** ***** *** ** talks ** ** * ****** / ***********. *** ***** *** truth. **** ** ***** *** **** *****, **** **** *** mean ******** **** **** ** **.

** **** ****, ** *********** ***** **** *****. ** ***** ******, ** ***** *** but** ** ***, ***** ** ** * **** **** *** *** ****?

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

Hikvision's **** ******

************ **** ******* **********, ****** ** *****'**************** *******, *** *** **** **** $* ******* *** ***** revenue, ****** **** *** ** ***** ************. **** ** ~* times *** **** ** ***** **** ******* ** ~$*** ******* USD (************'* **********). ****'* **** ************* ***** ******* *** ****** **** *** a ***** ************ *******. ********, **** *** ********* ********** **** net ****** **** **% (*** ******* ********* *** ********* ** the *****).

****, ********* *** * ******* ********* *** * *** ** cash ** ****. *****, ********** ** ***** ~$** *******. ** *** **** ** ***********, ****'* **** **** * times****'* ************ ******** ***** ** ***** ***** ************ ******* ** *** Americas. ****, ********* *** ***** **$* ******* *** ****** *** ****.

Hikvision's **********

***, ** *** **** ******* ***** ***** ************, *** ***** conclude **** **** ******* *** ************** ********** *** *********** **** far ******* *** ***********. *******, ****'* *** **** *** ****. On * **** ******* / ********** ***********, *** ******* ** middle ** *** ****, ** ****, **** ** **** **** solid ********* **** **** *** *******.

************ **** *** *** ** *** **** ***, ******* ** its **********, *** ******* ******* ** *****. *** *******, ** the **** *** *****, ********* *** ******** **** ******* ******* Safe **** ******** ********* **$*** ******* *********** *******. ******, ****** *** *********'* ******* ***** ********** ** *****. ***************** **** ******* **** ** ****** **** *** ****, **** are ***** ****** ** **** ***** ***, ******** ******* ***** core '**** *****' *********** *********.

Hikvision's ********* **********

************** ** ** * *** **** ****** ******. **** **** a **** ********* *** * *** ** ****. *** *** to ********** ********* ***** ** ** *** ** *********** ******, rather **** **** ***** *** *** **** ** ********* ************* into ******* *******.

***** ***** ******* * **** **** ***** ***** *** ** established ******* ***** ********* **** ********* ***** *** **** *** 'global **********.'

Schneider ******** / ***** **********

********* ******** **** ***** *** *** *** *** **** *+ years,********* ***** ** **** *** ~$*.* ******* ***. ** **** ****, ***** *** ~$*** ******* ** *******. We ******* **** *****'* ******* ***** ** ***** ******* ** that ***** ** *** ******* ******* ****** *** *********** **** providers *** ******** **** *** **** * *****.

Schneider's **********

** ******* ********* ***** ****** *** ***** **** ***** ** hugely ********* ****** ********* ******* * ***** *****. ** *** one ****, *** ***** *********** **** *** **** **** * huge *******. ** *** *****, ** ** * ***** ************* asset ** *** ******* ********* *********. ***** ********* **** ** Pelco's ******* ** ****, **** ******* ** *** *** ** line *** ****** ********* ***** (***** *** ******** ******** *** less **** ** ******* ********* ******* ************).

******* *********, **** **** * ****** ********* ******** ***, ** willing ** ************* ******* ** ******** *********.

Will ** ****?

****** * **** **** **** **** ** * **** ****, unless ********* ** ******* ** **** ***** ** ** **** sale ****** (***** ** *****). **** ** ********* ******** *****, there ** **** ******* ** ******* *********** / *********. ***** they *** *** ******* **** *** **** *** ***** ***** and *********? ** **, ****'* ** ********** **** **** *** such ** ******. *******, ***** ***** *** ** **** ******** customers, **** ***** **** **** ** ******** **** ** ***** existing *********. *** **** ** ********* ***** ***** *** **** structure **** ***** ******* ***** *************, ** ***** ** ****** impossible ** **** ***** ** *** ****** ****** **** ***** within *****.

**** ***** *** * ***** ***** *** * *********** **** if, *** ** **** *** **** * *** ** ***** to **. ** ** *******, ** **** ********* ** ***** a *********, *** ****** ** ***** *** ** ******* ********* is ****** *** ******** *** *** ************* **** ***********.

******: **** **** *******

******** ******* **** **** **** *** **** *** ** ******** negotiations *** ********** **** *******.

Comments (12)

**, **** **** ******'* **** *** *****. ********* *** * strong *********** ******* ** *** ***** ****, *** *** ** its ********** ****** ** *** **** * *****, **** ** the ******** **** *********** **** *** ***** ** ** ****** management ******. **** ** *** *********** ***** *** ***** (* couple ** ***** *** ** *******) *** *************. **** *** turned *** ******* **** *** ********** **** **** *** **** products **** **** ******* **** ****** ** ** *********** **********.

*** ***** **** ** ********** **** ** ** * *********** advantage *** *********, *** ***** **** *** **** ****. *** real **** ** ***** ******** ** ** ** ***** *** marketing, *** ********* ** ****** ******** **** ****** ** ****. Since ***** ****** **** ** ***** ******* **** ***** *** the **** ** **** *******, *** ****** **** ****** ** real **** ******* *** *** ******** ******. ** ********* ******** they *** ********** ** ******** **** **** *** ********* **********. What *** **** *** ** ****** ** * ******* **** has ******* ********** ******** ** ******* ****** *** ******** ******** a ******* **** *** *** ***** ******** *** ********** ***** down ** *** **** *** *****. ********* *** ******** ***** that ** **** ** ******.

* ****** ***** ********** ****** ** ****** *** ** **** exercise.

* ** **** *** ******* *** ******* ***** ***** ** this *** - "*** ********* *** **** *********! * **** do ****" :)

* ******* *** ***** **** **** ***** ****** *** **********, review ** ********** *** *********, ********** ** ** ******** *** stock *********. (***** ** *** **** ********* ***** ********* ********* on ********* ****** ** *** ******** ********.) ******* ******* *****'* growth ****, * ******** ** **** ** ******; *******, ** the ***** ***** *** **% ***, *********** ******, *** **** should ** ** * ***** ********, *** **** *** ***** ask **** ********* ***** **** ** *****. *** ** *** "Undisclosed ************" ** ******* ***** ***** ********, **** *** ********** by ********** ***** **** * ****** ******* ********** ****** **** Pelco ***** ** **** **** *****.

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

*) ********* ** ******** ****** ** ****** ******* *** ******** roadmaps, *** ******** ********** ** **** ****** ***** ****** ********.

*) ********* ** ********* ***** ********** ****** ** ***** *** may ** ******* ** *** * ***** ******* *** ******* international ******** *** ********** ******.

******* **** ******** *** *** *********, **** ** ********** *** cents.

* ***** **** **** ** * ***** **** **** ****** using *********'* ***** ** **********; *** ** *** ******* ********* structure ** *********. ** ** ***** ******** ********** ** * so-call ******** ********* (***** ******* ********). *******, ********* *** ****** cash *** ****** **** **** ** **** **** ** *** cash ****.

*** ********** ** *********'* **** ** *****. **** *** ********** to **** ** * **** ****** ***** ** *** ****** digit ****** ****, ***** ********** ** ** **** *** *** been ************* ** *** ************ ***** ** *** *********** **** have **** **** ***. **** **** **** **** * ******** gap ** ***** ** ******* ******** *** **** ***. ** solve **** *******, **** **** **** ******* ** ******* ** based ************* ** ******* ** ** **** **** ********* * product *********** **** **** ** **** ****** *** *** ** market *****.

********* *** ********* ***** *****'* **** *** ******** ** **** for ******* ****** *** *** ********* **** ** ** ******** in *** **. ******, *** ** ****** ********** ** *** Chinese ******* **********, **** ** *** **** ******* "**** ****" deals ***** ** ****** **** *******. * ** ******* ***** the $**** ********* ****. *** ****** ******** ** ********* *** gave *** ******** *** **** **** ** ******* ** **** awaiting ***** *** ********** *** *********** ****** (*** **** *** convicted ** ******). ****** *** ********* **** **** *******, ********* stock **** *** ******** *** *** ********** **** **** **** leeway ** ** *** ***** ***** ** *** *********** ******.

*** ****** ********** ** ********* *** **** ** ***** ***** building ********* **** * $**-*** ******* ******* ** *** **** decade. ** ** ********** ********* *********** **** ** *****, ** will ** * **** ***** ****** ***** ** ******* ******.

** *** **** **** * *** ***** *** **** *** Pelco **** ** ******* ** *****, **** **** ******** ********* cloning *** ***** **** ** ***** *** ********* ********. ** yeah, ******* ***** **** ** * **** *** ******* ******** egos ** *****.

*****, ** *** **** ***** *** ******** ***** ** **% YoY ******. *'* *** **'* ****** ** * ******* ** they ***** ****** ***** *** ******* **** *** *** ** fight *** ********** *** ***** ******** (**** **** ** *******, Avigilon, *****, *********, ***.).

* ***** ********* ***** ** **** ** **** ******** *** all **** *** *** *****? :)

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

** ***** ** ******* ** ****** ********** ***'* ******** ** business (********). **** ***** ****** ** ***, **** ***** ** the **, *** *** ** *** *** ********* ******* ***** year ******* *** ********.

****'* * **** ******* *** * ***** ******. * ***'* know ****** ***** ******/*** ** ******* ** *** **********.

**** ** ** **** *** - **** ***** ******* ***** Hikvision **** *****? *** *** ****** * *** *** **** their **** ******* *** ********* *** ***** ******* ******. ***** Hikvision ***** ****? ** ******'* **** ** ***** ********* *** similar ******* ************.

******, ** ********* *** ** **** ****, **** *** **** :)

********* **** **** **** **** ***** ****. *** ** ****** a ****** **** ******* *** *** *** *** ******** ** a ******** ******** **** **** *** *** *** ** *** with ***** ******* ************ ********. ******** *** *** ** **** in *** *** *** *** ***** *** ***** ****** *** and *** *** ******. ***** ******* *** **** ***** ******* to *** *** ****** ******** ** **** **** ** **** to ****** ***** ****** **** **** ******** ****. **** ** a ***** *** ** *** **** ******* **** **** ****** kits ** ****** **** ******.

*******, **** ********, ******! ****'* ***** ** ** * *** of **** ** *** ** *** **** ******* :(

*** @****. *** ***** ** ********* ** *** ******* ***** systems **** *** *** **** ******** ** ***** **** ****. Not *** ***** ** **** ** *** *** ****** *****. I ***** ********* **** ****** **** **** ***** ** **** cheesburgers :)

* **** **** *********. *** ********,**** ***** *** ********, **** ************* **** **** ***,***+ ******* *** ****, ***** ** **** of *******. ** *** ***** ****, ***** ***,*** ******* **** resulted ** $** ******* ** *******. ** **** ****, ********* is ***** ** **** ** **** ******** ** ***** **** to **** * **** ** *** ******* *******.

* ***'* ***** ********* *** ******* ****. ***** ** ******* showing * **** ****** ****** *** *** **** ** ****. I ** **** ******, **** *** ******* ** $*.* ******* in ******* ***** *** **** *****, ************ ********** **** **** hundred ****** **** ** ***** ** ** **** **** :)

***** ** **** ******* *** **** **** ******* ** *** retail ******. * ******* *** ** ****** ** ******** *** OEM ************ ******** ****** *** ********. **** ****** ***** *** markup ** ***** ******** ************ ****** **** ***** ****** ** retail ****** ** ***** ***. ***** ******* ****** **** ** higher ******* ** ***** ****** ************ ************ ********** ** *** South/Central ******** ******. * *** ** ***** *** **** **** tell. *** ****** ** **** ********, ** *** *********** ** increase ******* ** *********** **** ***** ** ********* **** ********* do *** *** **** *** ******* *** ***** *** ** higher *** ******** **** ***** ******. *** ******* **** ** when ********* **** *** ********** **** ***** *** *** ******** now ***** ** *** *** **** ****** *** ******** **** HIK ********* ***** ******* ******* *******. **** ** *** ** then? **** ** **** ** ***** **** ** *** ******* channel *******? * ** ***** **** **** *** ** * small **** ** **** ** ********** *** *** ******'* ** all **** **** ****** *****:*

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Other Reports on Pelco

Pelco Optera 12MP Multi-Imager Tested on Nov 09, 2015
This summer, Pelco came out firing against Arecont, touting the superior performance of its new multi-imager line vs Arecont's. But is this really...
Pelco Head Out, Diesel Exec In on Oct 21, 2015
The head of Pelco is out. This is a major shakeup with a surprising replacement. In this note, we examine Pelco's issues and the concerns with...
Pelco Criticizes Arecont's Multi-Imager on Jul 10, 2015
Pelco is rolling out their new multi-imager line and they are taking aim at Arecont. In their new promotion, here is the comparison they...
Pelco Optera Multi-Imager Cameras on Apr 07, 2015
2015 looks to be the year multi-imager goes mainstream. Pelco is one of a number of major brands launching multi-imager cameras. In this note, we...
Pelco's New VMS - VideoXpert on Feb 02, 2015
Pelco has had multiple VMSes / recorders but none of them have been close to market leaders Now, Pelco is launching a new VMS, called...
Pelco IP Camera Price Cuts on Jul 24, 2014
Starting July 1, 2014, Pelco has made significant price cuts across their mid to high end IP camera lines. In this note, we examine the price cuts...
Pelco Responds to Criticism Impressively on Jun 09, 2014
Companies tend to put their head in the sand when criticized, hoping it will go away and bitterly bemoaning that anyone would actually speak their...
Pelco Major Rep Shakeup on Jun 02, 2014
Pelco has ended their relationship with 5 of 8 Noth American manufacturer representatives while bringing on 2 new firms. These moves have caused...
Testing 5MP Pelco Sarix IR on May 15, 2014
Integrated IR has become a common solution for low light problems, but resolutions have remained relatively low, usually 1080p and below. Now, 5MP...
Pelco / Schneider Multisight VSaaS on May 08, 2014
Pelco / Schneider Electric is getting into the VSaaS market with the launch of their Multisight video service. In this note, we answer the...

Most Recent Industry Reports

Axis OrwellLabs Exploit Tested on Jul 29, 2016
Another exploit has been reported for Axis cameras (OrwellLabs AXIS Authenticated Remote Command Execution), less than a month after Axis critical...
Hikvision 12MP IR 360 Tested on Jul 28, 2016
Hikvision has released their latest IR panoramic camera, the DS-2CD63C2F-IV, with a 12MP sensor.  To find out, we bought one of these new models...
Surveillance Recording Mode Statistics 2016 on Jul 28, 2016
Continuous? Motion? Boost? What recording should be used? What is used? This report compiles data from 90 integrators on storage modes most...
Anixter Touts Selling to End Users on Jul 27, 2016
Anixter's track record of selling to end users inspires much negativity in the industry. But Anixter's CEO has a different take on it. In this...
Access Control Does Not Want ONVIF on Jul 27, 2016
ONVIF has become a major force in video surveillance. Despite its well deserved criticisms, ONVIF is widely embraced by video surveillance...
Imaging Developer Claims Massive Low-Light Improvements on Jul 27, 2016
In the early days of megapixel, binning was a crutch used to compensate for poor low-light performance.  Low-light sensitivity improvements have...
Hikvision Desperate And Destructive Slashing on Jul 27, 2016
Now a 20% across the board price cut. Hikvision has taken their price slashing to a whole other level. And it is bad news, for Hikvision and their...
Pivot3 Says Big Growth Despite 3 Top Execs Out on Jul 26, 2016
Pivot3's significant turnover continues, with 3 more executives out. However, Pivot3 responded to us saying this is all a normal part of their...
Panasonic Embraces Advidia OEMing of ACTi, Dahua and Hikvision on Jul 26, 2016
Clever move or surrender? When Panasonic bought Video Insight in 2015, the focus clearly was their VMS. But Video Insight also offered their...

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