Honeywell Systems Group, Louisville, Ky., acquired ActivEye Inc., Briarcliff Manor, N.Y., a video analytics software company. The acquisition, which officially closed in late February, was in the works for about six months prior to the announcement, John Lorenty, president of the Honeywell Systems Group told SDM. Terms of the transaction were not disclosed.

The announcement was a necessary move for Honeywell, Lorenty said. A leader in security hardware offerings, integrating analytics into the company’s products will further position Honeywell in a competitive market that continues to move into the digital realm.

“Honeywell Systems has a very strong offering in hardware and ActivEye is very strong in software, and that is what we truly needed. This [acquisition] will add to the efficiency of our products by adding analytics,” Lorenty explained.

“I don’t think manufacturers can succeed anymore by just selling DVRs. Take a look at what’s happened in the industry. Everyone is talking about the digital revolution. That has replaced VCRs with computer hard drives. But what is important is not the media itself, but the content,” Lorenty said. “With digital technology, analytics allow you to gather better information faster. Video analytics is improving customers’ operational efficiency. I believe it will be the fastest growing segment in our industry,” he predicted.

ActivEye’s video analytics software includes a suite of products. Active Alert, for video surveillance systems, uses video content analysis software and forensic tools to provide real-time alarms based on events and behaviors. The company, which boasts more than 50 patents, has a team of eight developers, all of whom will continue to stay on after the acquisition, Lorenty said.

And to help further development, Honeywell has already expanded the organization. “We are in the process of double-sizing the [analytics] business in 30 days in terms of employee headcount. We are putting a major investment into staffing and increasing the engineering team,” he said.

Honeywell plans to incorporate video analytics into a suite of DVRs and NVRs over the next four months. By late summer, Lorenty said, Honeywell will be launching a new line of IP-based cameras. “By the first part of 2008, we will have analytics in the IP-based cameras,” Lorenty revealed. “It’s a very exciting time. We ultimately feel that this technology will be pushed ‘out to the edge’ so to speak. We think it’s very important to develop cameras and ultimately, put that intelligence in the cameras.” For more information, visit www.security.honeywell.com.