DVTel Strikes Deal to Acquire Video Analytics Specialist ioimage
DVTel, a provider of video management system (VMS) software, has acquired intelligent video appliances-maker ioimage.
The two privately held companies did not release terms of the deal; however, according to Israeli newspaper reports, a stock transaction was agreed upon for $80 million. DVTel officials would not fully confirm the media reports but did say the deal involved a transfer of company stock to ioimage.
The decision to acquire ioimage is central to the company’s ongoing strategy to innovate end-to-end, IP-based physical security solutions to meet the changing needs of its customer base, Kim Robbins, director of marketing communications at DVTel, tells SSI.
“We have been getting many requests for analytics, so in our business strategy we thought we should start looking at different companies that might be available,” Robbins says. “It makes good sense for ioimage as well. You rarely see analytics solutions being implemented by themselves. They are almost always with a VMS solution.”
DVTel’s portfolio includes a complete line of video surveillance products, including network cameras and encoders, along with an IP-based access control solution. The company is best known for its iSOC security management platform.
Founded in 2000, Israel-based ioimage, with U.S. headquarters in Denton, Texas, specializes in cameras and encoders with embedded video analytics. Its products are used for real-time detection, alert and tracking of intruders, vehicles and other event-driven threats in commercial and government sectors.
Ultimately, being acquired by an IP solutions provider was a natural evolution for the company, John Whiteman, ioimage’s president, Americas, tells SSI.
“Everybody who invested in analytics as a manufacturer has always been seeking how do you leverage analytics so it becomes more prevalent and eventually to a corporate level, what is the exit strategy,” Whiteman says. “You are seeing a lot of analytics companies that are floundering today from a cash flow perspective and we just feel for our own life cycle that now is the time to partner with a strong provider of IP solutions.”
The deal brings together two meaningful players that will fare better combined than either did as a standalone and represents a turning point in intelligent video, Walter Bailey, CEO and managing member of New York-based The EpiGroup, an investment banking and research firm covering the security industry, tells SSI.
“While the price appears high, game-changing deals frequently are expensive but viewed as necessary to reframe the enterprise or industry,” Bailey says. “Together, DVTel and ioimage deliver leading-edge hardware and software applications that allow users to tailor their systems to their customer-specific needs, to scale platforms rapidly and easily, and to utilize best of class IP technologies.”
Because DVTel’s solutions are built on an open platform, the company has long supported many third-party hardware providers as well as other video analytics providers. Third-party integration will remain a company strongpoint, Robbins says.
“There are many customers who may want other types of solutions. If you want and end-to-end solution DVTel can be your one-stop shop, but we also have a very powerful platform with many different integrations.”
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