Bosch announced today it will boost its Security Systems division by acquiring Burnaby, Canada-based Extreme CCTV for around $92 million ($93 million Canadian).
The deal calls for Bosch to offer Extreme CCTV stockholders $5 Canadian per share in cash. The stockholders include private and institutional investors as well as the company management.
“In acquiring Extreme CCTV, we want to extend our leading position in the fast growing video surveillance market,” says Uwe Glock, president of the Bosch Security Systems division. “The company’s innovative technologies will expand our product portfolio and strengthen our presence in Canada, the U.S. and the U.K.”
Extreme CCTV, a provider of active infrared illuminators, video surveillance products and systems for license plate capture, staffs about 130 employees at locations in Burnaby, Newcastle and Church Crookham in the United Kingdom, and Barbados.
Jack Gin, president and CEO of Extreme CCTV, says the acquisition will help the company accelerate its product development and growth initiatives by utilizing Bosch’s manufacturing capabilities and integrating product lines into Bosch’s global sales channels.
“We believe this transaction is an excellent value proposition for our shareholders and this momentous event lays the foundation of a new era for Extreme and its subsidiaries,” Gin says.
Extreme CCTV reported record revenues of $42.6 million and a net income of $2.5 million – increases of 57.5 percent and 36.5 percent, respectively over its fiscal year ended September 30. The company achieved quarterly revenues of $9.9 million for the fourth quarter as compared to $8.8 million for the same period of the prior year, resulting in an increase of $1.1 million or 12 percent. The company’s subsidiaries include Forward Vision and Derwent Systems.
Bosch Security Systems manufactures video surveillance, access control, intrusion, evacuation and fire/life-safety systems. The company’s solutions are used in a wide range of industries and applications, including banks, city centers, industrial complexes, retail stores, train stations and airports.
In 2006, the Bosch security division reported sales of about $1.91 billion.
Extreme will become part of Bosch’s security division following the close of the transaction. The deal, which is subject to regulatory approval, is expected to close in February 2008, according to the company.
