Cantronic Systems entered a binding agreement to buy a 58.6 percent stake in Beijing Advanced VideoInfo Technology (AVINFO) in Beijing, China, for about US$1.7 million in cash, said the company in a prepared statement. AVINFO will report to the company's Shanghai based subsidiary Cantronic Security Systems (China), Cantronic said.
Cantronic Systems entered a binding agreement to buy a 58.6 percent stake in Beijing Advanced VideoInfo Technology (AVINFO) in Beijing, China, for about US$1.7 million in cash, said the company in a prepared statement. AVINFO will report to the company's Shanghai based subsidiary Cantronic Security Systems (China), Cantronic said.
"I am pleased with our progress in finding a quality growth opportunity with strategic product in AVINFO which will allow Cantronic to leverage and combine its strength in gaining significant market share in China's rapidly growing video surveillance market," said James Zahn, President and CEO of Cantronic. "China's security and surveillance industry prospects continue to be encouraging due to increasing security and rising surveillance demand. Government spending on security and surveillance is increasing throughout the country to combat riots, terrorist threats, to protect wealth and lives, and most recently to stimulate GDP growth. More cities have started to build Safe City security and surveillance networks, creating enormous demand for security and surveillance products and systems. AVINFO is a pioneer and one of the approved vendors for Safe City Projects with more than 10 citywide installations to its credit. With the AVINFO acquisition, Cantronic is now well positioned to achieve its China growth strategy."
Established in 2002, AVINFO is a digital video platform provider for medium to large-scale networked video surveillance applications, with revenues of US$4.9 million in 2007.