Finally, after all the speculation in the market, Avigilon has a new owner – Motorola Solutions, whose portfolio of mission-critical communications technologies including pagers and two-way radios can be enriched by Avigilon’s video surveillance and analytics solutions.
Finally, after all the speculation in the market,
Avigilon has a new owner –
Motorola Solutions, whose portfolio of mission-critical communications technologies including pagers and two-way radios can be enriched by Avigilon’s video surveillance and analytics solutions.
In a joint
statement by the two dated Feb. 1, Motorola Solutions said it has entered into a definitive agreement to acquire Avigilon in an all-cash transaction, buying all of Avigilon’s outstanding shares for CAD$27 per share, higher than the company’s closing value of CAD$22.82 on Feb. 1. The enterprise value of the transaction is approximately US$1 billion, including Avigilon’s net debt.
Avigilon, based in Vancouver, British Columbia, designs, develops and manufactures advanced security surveillance solutions, including IP cameras, video management software and video analytics, like Appearance Search and Unusual Motion Detection, that issue alerts in real time when a person, object or vehicle of interest is detected. Targeted vertical markets include airports, banking, casinos, city surveillance, critical infrastructure, education, healthcare and retail. The company also holds more than 750 US and international patents.
The acquisition of Avigilon seems a good fit for Motorola Solutions, whose offerings to their targeted verticals, including in particular national government security and law enforcement, can be boosted with video surveillance-related products and solutions.
“This acquisition will bring Avigilon’s advanced video surveillance and analytics platform to the rapidly evolving public safety workflow, while also expanding our portfolio with new products and technologies for commercial customers,” the statement cited Greg Brown, chairman and CEO of Motorola Solutions, as saying. “Video can play a powerful role in creating safer cities and thriving businesses. It can serve as highly efficient ‘eyes and ears’ for monitoring a given location, and advanced video analytics can proactively alert officials to a perimeter breach or quickly find a person who left behind an object of interest.”
“We’re very pleased to be joining Motorola Solutions, as their vision and strategy aligns fully with our own,” Avigilon’s founder, CEO and chairman Alexander Fernandes said in the statement. “This combination will bring new opportunities to Avigilon, allowing us to accelerate our innovation and provide even more value to our customers.”
Avigilon ranks No. 12 on a&s International’s
2017 Security 50 with 2016 revenue of $280.7 million. Motorola Solutions had $6.038 billion for that year. “Motorola Solutions has sufficient capital resources, including cash on hand and available commercial credit facilities, to complete the transaction,” the statement said.
The statement further said the transaction is expected to be completed by the end of the second quarter of 2018, subject to customary closing conditions, including regulatory, shareholder and court approvals. The impact of the deal on Avigilon’s existing distributors and partners remains to be seen.