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Motorola acquires IndigoVision in $37.2 million deal

Motorola acquires IndigoVision in $37.2 million deal
In the latest from the security merger and acquisition block, Motorola Solutions purchased U.K.-based video solutions provider IndigoVision, marking the US communications giant’s second video-related acquisition after Avigilon.
 
The deal, expected to take effect in May 2020, is worth 30.4 million pounds or approximately US$37.2 million, translating into 405 pence per IndigoVision share or 129 percent premium over the company’s 177p closing price on the “last practicable date,” according to a March 17 filing by IndigoVision, which stands at No. 38 on a&s’s 2019 Security 50 compilation.
 
Both companies cite the deal is mutually beneficial. Notes Pedro Vasco Simoes, Chief Executive Officer of IndigoVision: “The access we will now have to Motorola Solutions’ range of innovative technologies will create new opportunities for IndigoVision and enable us to bring an exciting proposition to the market that allows us to further deliver on our goal of delivering safety, security and business intelligence.”
 
John Kedzierski, Senior VP for Video Security Solutions at Motorola Solutions, says: “We share IndigoVision’s commitment to providing next-generation, end-to-end video security solutions that enhance safety, security and efficiency. IndigoVision’s end-to-end offering, global presence and customer base will complement our existing and growing presence in video security and analytics.”
 
Beyond the corporate talk, though, a deeper look at the deal provides clues as to why the purchase may provide value for both companies.
 
This of course is not the first acquisition of an end-to-end video solutions provider by Motorola, which has sought to add to its range of radio communications equipment portfolio video solutions and products to reach more vertical markets and end users. That rationale prompted Motorola in 2018 to make the $1 billion acquisition of Avigilon which has boosted Motorola’s offerings with cameras, VMS’s and storage devices.
 
Although the IndigoVision acquisition came at a much less cost, it’s nonetheless equally significant in terms of boosting Motorola’s standing in the video surveillance business. For starters, IndigoVision has quite a strong presence in EMEA compared to Avigilon which gets most of its revenu from North America. As indicated by its 2019 financial statement, IndigoVision’s 2018 EMEA revenue totaled $19.4 million, versus $13.1 million for North America and $7.9 million for APAC.
 
Further, Motorola sees further growth opportunities especially in the area of command center software platforms. This is a main reason why Motorola chose IndigoVision, which in 2019 itself acquired AgoraSys, a Portuguese spinout from the University of Lisbon which provides a unified command and control software platform that integrates different security systems from multiple vendors, including IndigoVision’s own Control Center video management software.
 
IndigoVision stands to benefit as well by receiving “the support and resources” of Motorola, which says there are “excellent opportunities to replace current third-party manufactured IndigoVision products with Motorola Solutions products,” according to the filing. Further access to the US market is also cited: “The IndigoVision Directors also consider that the acquisition will provide IndigoVision with improved access to the US market in a way that would not otherwise have been available to it as an independent business,” the filing noted.
 
In the end, how the deal will play out remains to be seen. What’s visible now is for a price of $37.2 million, Motorola will see its video surveillance business boosted with enlarged geographical presence and a more diversified portfolio.


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