Inside Flir's acquisition of Lorex

Company president explains strategy behind purchase of consumer camera maker


Flir does not intend to change Lorex’s base of operations in Ontario nor their executive leadership team. The Digimerge brand, which is where Flir intends to “inject” its thermal imaging technology first, will see the most changes initially, according to Teich.

"You can look at (the acquisition) from a couple of different levels. If you start and you just look at it from a revenue perspective, it’s not that meaningful initially in that Lorex is doing about $75 million in revenue and Flir is doing $1.45 billion in revenue, so it’s not going to move the needle significantly on the revenue side initially," Teich explained. "If you look at it on a sales synergy standpoint, again, initially there is not a tremendous amount of synergy there with the exception of potentially the Digimerge brand where, again, we are calling on similar customers and as a result of that we will try to get some synergistic list between the front ends of those two business since they are calling on similar customers.

"From a technology standpoint, it’s kind of interesting. While today Lorex has nothing to do with thermal imaging, they do sell a lot of cameras that have 'night vision' capability using infrared illuminators. From a technology standpoint, we bring to Lorex now a different way to image in darkness and a much more effective means to imaging in darkness. Ultimately, we will be able to bring the Lorex and Digimerge customer bases a true 24/7 imaging capability, which they do not have today. Similarly, on the other side of the equation, Flir is an imaging company. We’re very focused on imaging in the thermal spectrum, but we do today sell a lot of visible cameras. I think you will see, across all of our business lines, a greater offering of a combination-based system where the user is getting a combo thermal/visible solution, which we believe provides the best of both worlds."