Though both companies offer network video solutions, the acquisition of March Networks, which is well-known for its Command enterprise video management system, should bolster Infinova’s position in the IP video space. It would also make the combined company one of the leading providers of DVRs. In July, IMS Research ranked March Networks as the top supplier of enterprise DVRs in the Americas.
Infinova, which is predominantly known for its analog and hybrid products, also makes a variety of other video surveillance components, including fiber optic data transmission products, control room equipment such as matrix switches and video system control keyboards, recording equipment and a number of specialty products.
According to Gary Wong, senior research analyst, video surveillance and security services at UK-based IMS Research, the merger of the two companies would place them within the top 10 suppliers of video surveillance equipment based on figures in the research firm’s most recent global CCTV study. Wong said the combination of the companies will create several synergies particularly in the vertical markets and geographic regions that they serve.
"The vast majority of March Network’s revenue is generated from the Americas and EMEA markets. By comparison, its current presence in Asia is relatively limited," Wong said. "Conversely, Infinova is well established in Asia (predominantly China), but its current presence outside of Asia is relatively low. The combined company could enable March Networks for gain traction in Asia and also allow Infinova to gain recognition outside of its domestic market."
While March Networks is strong in the banking and retail sectors, Wong said that Infinova is stronger in industrial markets and that the combination of the two companies will result in a "broader vertical offering." However, Wong said that it would be unlikely that any of these synergies would push it into the top five providers of CCTV equipment globally in 2012. In addition, Wong believes that video surveillance market will continue to consolidate.