ObjectVideo Inc., Reston, Va., and Vancouver-based Avigilon Corporation announced the sale of ObjectVideo's intellectual property and patent licensing program to Avigilon for a cash consideration of $80.3 million.
"From its founding, ObjectVideo has aimed to lead innovation in the world of video analytics, so it is very rewarding to see Avigilon, a global market leader in security, recognize our significant contributions to the field," said Raul Fernandez, chairman and CEO of ObjectVideo. "This transaction marries a deep and highly valuable patent portfolio to the fastest growing solutions provider in the video security industry. The union creates a unique and incredibly well positioned company."
ObjectVideo will continue to leverage its deep bench of technical talent to deliver next generation computer vision technology to commercial and government clients and invest in its sixth generation software product.
Founded in 1998, ObjectVideo is an innovator in the intelligent video solutions market. ObjectVideo's video analytics patents, now acquired by Avigilon, are licensed and deployed by leading IP video manufacturers around the world. Under the acquisition, Avigilon has acquired all of ObjectVideo's 76 U.S. and international patents and over 50 U.S. and international patent applications. In addition to the foregoing, until January 31, 2015 ObjectVideo will continue to generate additional U.S. patent applications, and has agreed to transfer any and all such applications to Avigilon for no additional consideration.
With the completion of the Acquisition, Avigilon now holds 124 U.S. and international patents, and 202 U.S. and international patent applications.
"The future of the video surveillance industry is in video analytics," said Alexander Fernandes, founder, president, CEO and chairman of the board, Avigilon. "The acquisition not only bolsters Avigilon's portfolio of intellectual property, but it also brings with it a recurring royalty revenue stream."
The patent licensing program provides companies with the opportunity to leverage the innovative features of industry-leading video analytics patents. Nineteen royalty-paying licensees have joined the program, including global corporations such as Sony Corporation, Panasonic System Networks Co., Ltd., Bosch Security Systems Inc., Hangzhou Hikvision Digital Technology Co., Ltd., Pelco Inc., FLIR Systems Inc., and Sensormatic Electronics, LLC (Tyco), and more.
"The acquisition opens new doors for Avigilon, provides us with additional freedom to operate, and greatly strengthens our intellectual property portfolio," said Fernandes. "It positions Avigilon to continue leading the way into the future of the video surveillance industry." GMP Securities L.P. acted as the exclusive financial advisor to Avigilon on the acquisition. Avigilon expects to file a Business Acquisition Report, as such term is defined in National Instrument 51-102 Continuous Disclosure Obligations, respecting the acquisition in due course.