Panasonic Sells Off Security Side of Business

Polaris Private Equity Fund IV, L.P., etc., managed by Polaris Capital Group Inc. have recently agreed to a strategic capital alliance with Panasonic Corp. to acquire 80 percent of the outstanding shares of the company to be newly established by Panasonic to succeed the Security Systems Business.

Polaris Private Equity Fund IV, L.P., etc., managed by Polaris Capital Group Inc. have recently agreed to a strategic capital alliance with Panasonic Corp. to acquire 80 percent of the outstanding shares of the company to be newly established by Panasonic to succeed the Security Systems Business. The new company, which will retain the Panasonic brand, and they are expected to increase investment into R&D and the business.

The Security Systems Business has evolved over the past 60 years, and developed its presence by combining advanced edge devices such as security cameras developed to meet the needs of the market, as well as software with features such as face authentication. Through these efforts, it has established a leading brand position in the security camera market in Japan. 

A Polaris statement says it believes that the security-related businesses will grow in response to increase in the awareness for security and safety. The strategic capital alliance aims to support the newly established company in order to realize exponential growth.

Polaris has experiences in multiple projects of strategic capital alliances with manufacturers and large-scale companies. The company expects it will smoothly and rapidly build the structure necessary for an independent business, while maintaining the strengths and unique characteristics of the business. In addition, it is aimed to strengthen solutions capabilities with an eye to aggressive alliances and M&A strategies, leverage these strengths to expand its earnings base on a global scale, centered on the North American market, provide new products and services for the next generation, and expand sales of camera modules for medical devices.

The Security Systems Business will strive to maximize its corporate value as an independent company toward IPO in the future. The transaction is expected to be completed on Oct. 1, subject to the approval of the relevant authorities.

Neither a price paid nor revenue for the business was disclosed.

According to IPVM blogger John Honovich, “the valuation to be low (1x revenue or lower) given the challenging conditions this business has faced over the last few years (race to the bottom, OEMing Dahua.

“Despite these challenges, Panasonic's video surveillance annual revenue is still likely in the hundreds of millions globally, though lower than companies like Avigilon, Hanwha and Uniview who are all now larger, in the half-billion annual revenue range.”

The New Company will be formed with Security Systems Business Division of Connected Solutions Company of Panasonic as a main body and will include the industrial & medical vision compact camera R&D department of its Innovation Center [emphasis added]

This will include three operations, Surveillance Systems Business (Intelligent Surveillance), Industry-Specific Businesses (Public Solutions), Modules Business (Industrial & Medical Vision). While the “medical vision” element is certainly not security.

Sales will be handled differently across the world:

  • in Japan, through Panasonic Japan
  • in North America, through the new company's own internal sales team
  • All other territories, through existing Panasonic regional sales companies

Moreover, Panasonic's China factory is included in this deal that was put for sale in 2018 but never sold.

About the Author

Ralph C. Jensen is the Publisher/Editor in chief of Security Today magazine.

Featured

  • Accelerating a Pathway

    There is a new trend touting the transformational qualities of AI’s ability to deliver actionable data and predictive analysis that in many instances, seems to be a bit of an overpromise. The reality is that very few solutions in the cyber-physical security (CPS) space live up to this high expectation with the one exception being the new generation of Physical Identity and Access Management (PIAM) software – herein recategorized as PIAM+. Read Now

  • Protecting Your Zones

    It is game day. You can feel the crowd’s energy. In the parking lot. At the gate. In the stadium. On the concourse. Fans are eager to party. Food and merchandise vendors ready themselves for the rush. Read Now

  • Street Smarts

    The ongoing acceptance of AI and advanced data analytics has allowed surveillance camera technology to shift from being a tactical tool to a strategic business solution. Combining traditional surveillance technology with AI-based data-driven insights can streamline transportation systems, enhance traffic management, improve situational awareness, optimize resource allocation and streamline emergency response procedures. Read Now

  • The Progress of Biometrics

  • Next-Gen AI for Smart Cities

    The future of smart city technology is not being shaped in Silicon Valley — it is taking root in Dubuque, Iowa. With a population of about 60,000, this mid-sized city has become a live testbed for AI-driven traffic management thanks to a unique public-private collaboration led by Milestone Systems. Project Hafnia demonstrates how cities can transform urban mobility and safety through Responsible Technology—without costly infrastructure overhauls. Read Now

New Products

  • Unified VMS

    AxxonSoft introduces version 2.0 of the Axxon One VMS. The new release features integrations with various physical security systems, making Axxon One a unified VMS. Other enhancements include new AI video analytics and intelligent search functions, hardened cybersecurity, usability and performance improvements, and expanded cloud capabilities

  • Camden CM-221 Series Switches

    Camden CM-221 Series Switches

    Camden Door Controls is pleased to announce that, in response to soaring customer demand, it has expanded its range of ValueWave™ no-touch switches to include a narrow (slimline) version with manual override. This override button is designed to provide additional assurance that the request to exit switch will open a door, even if the no-touch sensor fails to operate. This new slimline switch also features a heavy gauge stainless steel faceplate, a red/green illuminated light ring, and is IP65 rated, making it ideal for indoor or outdoor use as part of an automatic door or access control system. ValueWave™ no-touch switches are designed for easy installation and trouble-free service in high traffic applications. In addition to this narrow version, the CM-221 & CM-222 Series switches are available in a range of other models with single and double gang heavy-gauge stainless steel faceplates and include illuminated light rings.

  • Camden CV-7600 High Security Card Readers

    Camden CV-7600 High Security Card Readers

    Camden Door Controls has relaunched its CV-7600 card readers in response to growing market demand for a more secure alternative to standard proximity credentials that can be easily cloned. CV-7600 readers support MIFARE DESFire EV1 & EV2 encryption technology credentials, making them virtually clone-proof and highly secure.