Motorola Solutions Buys Avigilon

Motorola Solutions Moves into Video Surveillance with Purchase of Avigilon

Motorola Solutions has acquired Avigilon.

Motorola Solutions (MSI), based in Chicago has acquired Avigilon. MSI is a $16 billion market cap publicly traded company who is a large technology provider but primarily an outsider to video surveillance.

On the positive side for Avigilon, the purchase price is $27 CAD or ~$1 billion USD, much higher than their recent low of $8 per share in November 2016 but still less than their all-time high of ~$33 in January 2014.

Motorola paid ~2.5 times Avigilon sales, moderately more than what Tyco paid for Exacq (which turned out to be a very good deal) but far less than the 4x Canon paid for Axis.

MSI’s 2017 revenue was $6.3 billion compared to Avigilon ~$400 million, making Motorola about 15x larger than Avigilon. As such, Avigilon will be a smaller division / portion of the overall Motorola business.

According to Jon Cropley, a principal analyst of video surveillance in the HIS Markit, Avigilon, one of the world's largest suppliers of professional video surveillance equipment.

Rumors about Avigilon being acquired have been circulating in the industry for years. Many expected one of Avigilon's competitors to acquire it. Instead, Motorola Solutions, a company with limited current involvement in the video surveillance market, has stepped in.

Motorola's focus on public safety projects is likely to have been a major motivation for the acquisition. City surveillance is an important element of public safety. Professional video surveillance equipment revenue has been growing faster in the city surveillance sector than in the rest of the market in recent years. IHS Markit forecasts this will continue, with the city surveillance sector growing at a compound annual growth rate (CAGR) of 11.1 percent to 2021 — and the total market growing at a CAGR of 6.8 percent.

IHS Markit estimates that Avigilon was the eighth largest supplier of professional video surveillance equipment in 2016 with over 2 percent of a global market worth $15.4 billion.

About the Author

Ralph C. Jensen is the Publisher of Security Today magazine.

Featured

  • Maximizing Your Security Budget This Year

    Perimeter Security Standards for Multi-Site Businesses

    When you run or own a business that has multiple locations, it is important to set clear perimeter security standards. By doing this, it allows you to assess and mitigate any potential threats or risks at each site or location efficiently and effectively. Read Now

  • Getting in Someone’s Face

    There was a time, not so long ago, when the tradeshow industry must have thought COVID-19 might wipe out face-to-face meetings. It sure seemed that way about three years ago. Read Now

    • Industry Events
    • ISC West

  • Live From ISC West 2024: Post-Show Recap

    ISC West 2024 is complete. And from start to finish, the entire conference was a huge success with almost 30,000 people in attendance. Read Now

    • Industry Events
    • ISC West

  • ISC West 2024 is a Rousing Success

    The 2024 ISC West security tradeshow marked a pivotal moment in the industry, showcasing cutting-edge technology and innovative solutions to address evolving security challenges. Exhibitors left the event with a profound sense of satisfaction, as they witnessed a high level of engagement from attendees and forged valuable connections with potential clients and partners. Read Now

    • Industry Events
    • ISC West
Most   Popular

Featured Cybersecurity

Webinars

New Products

  • AC Nio

    AC Nio

    Aiphone, a leading international manufacturer of intercom, access control, and emergency communication products, has introduced the AC Nio, its access control management software, an important addition to its new line of access control solutions. 3

  • 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. 3

  • QCS7230 System-on-Chip (SoC)

    QCS7230 System-on-Chip (SoC)

    The latest Qualcomm® Vision Intelligence Platform offers next-generation smart camera IoT solutions to improve safety and security across enterprises, cities and spaces. The Vision Intelligence Platform was expanded in March 2022 with the introduction of the QCS7230 System-on-Chip (SoC), which delivers superior artificial intelligence (AI) inferencing at the edge. 3