Video Surveillance industry is slowly getting consolidated for various reasons and the latest to join are FLIR and DVTEL. According to the media snippet given by FLIR officials, the company is all set to acquire video surveillance hardware and software provider named DVTEL for $92 million in cash.
Till date, FLIR has been offering thermal cameras and DVTEL was extensively offering video analytics and VMS solutions. FLIR believes that the new merger will further strengthen its company’s offering to the field of video surveillance. As new merger will help it offers end-to-end security systems to meet the needs of each individual market from consumers to large-scale enterprises.
In the past two years, security industry- especially the video segment have experienced serious consolidation trend. To begin with Canon purchased Milestone Systems this year and the list of other notable acquisitions goes as follows- Vicon’s purchase of IQinVision in 2014; OnSSI’s acquisition of SeeTec; and Panasonic’s purchase of Video Insight.
Despite the trend of increased consolidation, Jon Cropley-Principal analyst at IHS for video surveillance field said that the industry remains incredibly fragmented with the 15 largest vendors accounting for just 52% of market revenues in 2014.Her added, nevertheless, average camera and recorder prices have been falling rapidly putting pressure on vendor profits.
For example, IHS forecasts that the global average price of a network camera will fall by over 18 percent in 2015. At the same time, vendors like Hikvision and Avigilon that provide full system solutions, have been gaining market share (Hikvision’s share increased by five and a half percent between 2013 and 2014).
Where three years ago the industry was looking at ‘best of breed’ and integrated systems from multiple vendors, the latest market data suggests single vendor solutions are now often preferred due to ease of use, with the budget availability and upgrade facility. More details will be updated shortly.
So, what do you think about acquisition made by Oregon based FLIR in buying Ridgefield Park’s DVTEL for $92 million cash?
Like, was it a profitable purchase?
Please share your mind in the comments section below.