We recently wrote about the status of M&A in Physical Security, in an article called “Strategic Acquisitions Dominate Security M&A; Whilst Major Conglomerates & External Buyers lose their Appetite” – http://www.memoori.com/strategic-acquisitions-dominate-security-m-whilst-major-conglomerates-external-buyers-lose-appetite/
In the last 2 years there has been a significant trend for medium sized specialist companies (previously totally dependent on organic growth) to adopt strategic acquisition to speed up growth. The trend has continued this month with both Alarm.com and Avigilon making significant acquisitions.
Also this month Assa Abloy purchased a digital lock manufacturer in China, which seems to back up our previous statement that cross border acquisition will be the most likely driver for major conglomerates’ acquisitions. Our recent report showed the enormous latent potential in the Chinese market, which is not being maximized by leading edge western technology companies.
Avigilon acquires a Haul of ObjectVideo’s US and international patents and patent applications for $80.3m
ObjectVideo’s previous strategy of aggressively protecting their patents seems to have paid off with this acquisition of 76 US and international patents and more than 50 US and international patent applications – http://avigilon.com/press-tools/press-releases/avigilon-acquires-objectvideo-s-entire-patent-portfolio-and-licensing-program/
Avigilon’s CEO Alexander Fernandes has been quoted as saying “The future of the video surveillance industry is in video analytics, the acquisition not only bolsters Avigilon’s portfolio of intellectual property, but it also brings with it a recurring royalty revenue stream.”
Avigilon now holds 124 US and international patents, and 202 US and international patent applications.
Alarm.com Acquires Secure-i, A Provider of Commercial Video Surveillance Services.
Financial terms of the deal were not disclosed but the acquisition should give Alarm.com a commercial video offering that includes cloud-based hosted services and high definition surveillance.
The deal will allow Alarm.com integrators to deliver everything from residential smart home to commercial installations; which could include high-end cameras, multi-site management and a range of secure streaming and recording options – http://www.alarm.com/about/press/PressGeneric.aspx?cmid=123
Assa Abloy Acquires Digi Electronic Lock, a digital door lock manufacturer in China
The Digi Electronic “Keylock” is a leading brand in China for digital door locks with a comprehensive product range for the mid to low market – http://www.businesswire.com/news/home/20141210006713/en/ASSA-ABLOY-Acquires-Digi-Electronic-Lock-China#.VJgl4sAGA
Financial terms of the deal were not disclosed but Digi Electronic sales are expected to reach CNY250m for 2015, some $40m USD. The employ some 620 people in Guangzhou.
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