Vicon & IQinVision Announce Merger
Vicon Industries Inc. and IQinVision Inc. have entered into a definitive merger agreement.
Vicon Industries Inc. of Edgewood, N.Y. and IQinVision Inc. of San Juan Capistrano, Calif., have entered into a definitive merger agreement. Vicon is a designer and producer of video security and surveillance systems. IQinVision designs and produces high performance HD megapixel IP cameras.
Ken Darby, Vicon chairman and CEO, told SDM that both companies will maintain their existing branding and product lines for the time being, and both companies will continue to sell into and service their existing channels and customers. There will be no difference in sales, service and support compared with prior to the merger, but the move will allow both companies to offer fully integrated solutions for product lines they were previously missing. Vicon’s presence outside of the U.S. also will help IQinVision gain traction in the worldwide marketplace.
“We had been talking to [IQinVision] for quite a while,” Darby told SDM. “The marriage is really a good one for both of us as we wanted to truly complete our offerings to have a full line of products and they wanted to offer complete, integrated solutions. It’s a perfect match for us and them. We didn’t have a true offering in the fixed position HD megapixel area as most of our line was coming from third party sources and we felt that was a real gap in our offering.”
The merger has been approved by the boards of directors of both companies and is subject to shareholder approval, and other customary closing conditions. The transaction is expected to close in Vicon’s September quarter.
“It’s a very exciting transaction that unites two names very well respected in the verticals they are in and this gives them even better scale to compete in today’s marketplace,” said Michael McManus, managing director at Imperial Capital, which advised IQinVision on the transaction. TM Capital Corp. acted as financial advisor to Vicon for the transaction.
Ken Darby, who has delayed his retirement, will continue to lead the Vicon until his successor is named. The search for a new CEO was recently restarted.
For the twelve months ending December 31, 2013, IQinVision and Vicon generated $56 million in combined revenue. Following the merger, the board of directors of the combined company will consist of three directors designated by Vicon and three directors designated by IQinVision.