VideoSurveillance.com, a Portland, Ore.-based video surveillance integration company, is merging with CamGuard, a Corona, Calif.-based provider of managed video surveillance services, as part of an investment by Riverlake Partners, a Portland-based private equity firm. Financial terms were not disclosed.
The two security companies will combine operations and will be led by current VideoSurveillance.com President Josh Daniels, along with a team including Kathleen Sowder and Brett Fluegel. Company names, offices and employees will remain as part of the merger, and the combined company will continue to serve organizations in the construction, agricultural, energy, utility and manufacturing verticals, as well as the general commercial and education sectors.
“There is a growing demand for security-as-a-service, especially in industries where high value assets are under threat or temporary solutions are required,” said Daniels. “Our newly combined company will allow us to form a broader regional platform and provide a complete, end-to-end solution for clients seeking active video monitoring as opposed to more costly on-site security personnel.”
As technology has evolved, more organizations are turning to active and remote video monitoring as a more affordable alternative to on-site security guards. When suspicious activity occurs, remote central station operators view live camera video to engage perpetrators and dispatch authorities. Remotely managed video monitoring is a rapidly growing segment of commercial security with an estimated current addressable market in the U.S. alone of $1.4 billion in annual recurring revenues.
“We are excited to be supporting Josh and the entire leadership team in this new growth platform investment.” said Erik Krieger, general partner at Riverlake Partners. “Innovative security firms like VideoSurveillance.com and CamGuard have developed world-class on-site solutions now affordable to a large, underpenetrated market. The combination of these two solid entities within this high-growth sector fit perfectly with our ‘buy and build’ investment strategy.”
VideoSurveillance.com and CamGuard have consistently grown revenue at double-digit annual growth rates over the past five years. Combined, the two companies will have more than 60 employees, a 24/7 central station, geographic reach that spans from California into the Pacific Northwest, and an impressive intellectual property portfolio including nine video surveillance patents.
“This is an exciting next chapter for both of our companies as we move forward together,” added Daniels. “We’ll now be able to deliver a full end-to-end solution to existing clients, and we expect to be even more competitive in winning new project opportunities.”