Tyco announced on Wednesday that is has agreed to acquire video management software provider Exacq Technologies for $150 million in cash.
According to a statement, the acquisition of Indianapolis-based Exacq, which offers the ExacqVision VMS platform, will complement Tyco Security Products’ existing product portfolio and further strengthen its presence in the video market.
"The acquisition of Exacq will help Tyco to meet customer needs in the expanding global video market and provide Exacq with an extensive global channel to expand sales of its VMS solution beyond North America," said Linda Mansillo Kear, vice president of marketing communications for Tyco Security Products. "We expect that the Exacq business will grow as part of Tyco because there are natural synergies, particularly internationally where Tyco has a strong presence and where Exacq has plenty of opportunity to expand. Exacq has a strong position in North America and respected, quality technology that Tyco can leverage. We see this acquisition as a positive growth opportunity for both parties."
Following the acquisition, the company plans to integrate Exacq into its Tyco Security Products business, which also makes access control, tracking and intrusion detection solutions in addition to video surveillance devices. Kear said that the ExacqVision brand and its respective technologies will remain in place.
"Tyco Security Products already offers one of the industry’s most comprehensive security portfolios, and the acquisition of Exacq adds another leading brand of hardware and software products to our video system, intrusion and access control solutions," Kear added. "This is a technology and product brand addition to our technology portfolio and will continue to be developed and supported for existing customers as well as benefitting from Tyco’s global presence."
Exacq’s VMS solutions scale from small, single camera installations to large-scale integrations with thousands of cameras. Tyco said the business is expected to generate annualized revenues in fiscal 2014 of $75 million.
"The addition of Exacq to our video portfolio expands our best-in-class video solutions," Mike Ryan, president of Tyco Security Products, said in the statement. "The quality of Exacq’s products coupled with ease of use and ease of installation help us address the needs of a very different type of video user than we do with our current portfolio. Meeting the varied requirements of the diverse video customer base provides us with a unique position in the security industry, and increases Tyco Security Products’ leadership position in the video security business."
Kear echoed Ryan’s sentiments and said that Tyco would continue to support and develop its VideoEdge and victor products. "The Exacq products will bolster and complement the American Dynamics portfolio of NVR solutions by adding solutions specifically designed for a market segment that we haven’t previously addressed," she explained.
Kear said that Tyco intends to keep the company, as well as its products and existing channel "healthy and driving forward."
"When Tyco and Exacq decided to enter into this agreement, it was done placing a lot of value on Exacq’s products and technologies, but also on the talent behind the development of those products and technologies, because this is not just a technology acquisition but also a talent acquisition," Kear said. "The Exacq management principals of today will remain with the organization as executive management and are committed to continuing to develop and grow ExacqVision. Tyco entered into this agreement for the technology and for the talent that developed, sells and supports the technology."
The acquisition is expected to close later this year.