Value of security M&A deals fall

Industry has seen a 48 percent decrease in M&A value over the last two years across the board


Strategic buys have been the dominant force for acquisitions in the last four years and this is unlikely to change in the near future despite the fact that private equity and venture capital companies may become more active in the security business.

IPOs of relative new start companies have been conspicuous by their absence, partly because few have grown fast enough to command a satisfactory valuation for their investors and they are holding off until market conditions and valuations improve. 

The notable exception to this was Avigilon’s successful IPO in November 2012. Since debuting on the Toronto Stock Exchange at C$4.50, their stock rose 89 percent to trade at C$8.49 in a matter of days, giving it a market value of C$304.6 million. A year later the stock is trading at C$19.75. That’s the biggest gain in the past year for companies that began trading in Canada with an offering of C$20 million or more.

For more details about the report, visit http://www.memoori.com/portfolio/the-physical-security-business-in-2013/.