ObjectVideo Sells Patent Portfolio to Avigilon for $80.3M
RESTON, Va. – Video analytics technology provider ObjectVideo has sold its intellectual property and patent licensing program to Canadian security firm Avigilon Corp. for a cash consideration of $80.3 million.
Under the acquisition, Avigilon has acquired all of ObjectVideo’s 76 U.S. and international patents and more than 50 U.S. and international patent applications. In addition to the foregoing, until January 31, 2015 ObjectVideo will continue to generate additional U.S. patent applications, and has agreed to transfer any and all such applications to Avigilon for no additional consideration.
“The future of the video surveillance industry is in video analytics,” Avigilon CEO Alexander Fernandes says. “The acquisition not only bolsters Avigilon’s portfolio of intellectual property, but it also brings with it a recurring royalty revenue stream.”
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Founded in 1998, ObjectVideo is a privately held company with 34 employees. With the latest deal, ObjectVideo will be able to to repay the company’s investors and fund a new wave of product development, Washington Post reports.
ObjectVideo will continue to leverage its deep bench of technical talent to deliver next generation computer vision technology to commercial and government clients and invest in its sixth generation software product.
ObjectVideo will continue to sell its own software and provide consulting services to customers. Additionally, ObjectVideo’s staff will continue to invent new video analytics technology, according to Raul Fernandez, ObjectVideo’s chairman and CEO.
“From its founding, ObjectVideo has aimed to lead innovation in the world of video analytics, so it is very rewarding to see Avigilon, a global market leader in security, recognize our significant contributions to the field,” Fernandez says. “This transaction marries a deep and highly valuable patent portfolio to the fastest growing solutions provider in the video security industry. The union creates a unique and incredibly well positioned company.”
With the completion of the acquisition, Avigilon now holds 124 U.S. and international patents, and 202 US and international patent applications.
The patent licensing program provides companies with the opportunity to leverage the innovative features of industry-leading video analytics patents. Nineteen royalty-paying licensees have joined the program, including global corporations such as Sony Corp., Panasonic System Networks Co., Bosch Security Systems, Hikvision, Pelco, FLIR Systems and more.
“The acquisition opens new doors for Avigilon, provides us with additional freedom to operate, and greatly strengthens our intellectual property portfolio,” Fernandes says. “It positions Avigilon to continue leading the way into the future of the video surveillance industry.”
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