Avigilon acquires strategic intellectual property and continues to build video analytics patent portfolio.
Avigilon Corporation (“Avigilon”), a leading global provider of end-to-end security solutions, announced that it has completed the acquisition of the entire patent portfolio and the patent licensing program of ObjectVideo, (“ObjectVideo”) for cash consideration of US$80.3 million (the “Acquisition”).
Founded in 1998, ObjectVideo is an innovator in the intelligent video solutions market. ObjectVideo's video analytics patents, now acquired by Avigilon, are licensed and deployed by leading IP video manufacturers around the world. Under the Acquisition, Avigilon has acquired all of ObjectVideo's 76 US and international patents and over 50 US and international patent applications. In addition to the foregoing, until January 31, 2015 ObjectVideo will continue to generate additional US patent applications, and has agreed to transfer any and all such applications to Avigilon for no additional consideration.
With the completion of the Acquisition, Avigilon now holds 124 US and international patents, and 202 US and international patent applications.
“The future of the video surveillance industry is in video analytics,” said Alexander Fernandes, founder, president, CEO and chairman of the board, Avigilon. “The Acquisition not only bolsters Avigilon's portfolio of intellectual property, but it also brings with it a recurring royalty revenue stream.”
The patent licensing program provides companies with the opportunity to leverage the innovative features of industry-leading video analytics patents. Nineteen royalty-paying licensees have joined the program, including global corporations such as Sony Corporation, Panasonic System Networks, Bosch Security Systems, Hangzhou Hikvision Digital Technology, Pelco, FLIR Systems, and Sensormatic Electronics, (Tyco), and more.
“The Acquisition opens new doors for Avigilon, provides us with additional freedom to operate, and greatly strengthens our intellectual property portfolio,” said Fernandes. “It positions Avigilon to continue leading the way into the future of the video surveillance industry.”
GMP Securities L.P. acted as the exclusive financial advisor to Avigilon on the Acquisition.
Avigilon expects to file a Business Acquisition Report, as such term is defined in National Instrument 51-102 Continuous Disclosure Obligations, respecting the Acquisition in due course.