How Security Tech Vendors Grow And Diversify Through Acquisition

There are ways to grow a business other than investing in existing assets and finding new customers. The physical security sector has witnessed a steady flow of M&A activity in recent years and there’s no sign of it abating. Keen to exploit growing demand for end-to-end solutions, some of the industry’s biggest beasts have snapped up brands in adjacent industries to broaden their portfolio.

Intrusion alarm specialist Pyronix, for instance, was acquired by Chinese video surveillance giant Hikvision in April 2016.

By acquiring a British-based company, Hikvision brings huge foreign investment to the UK. It also allows Hikvision to provide solutions beyond video surveillance for their clients.

FLIR, a world leader in the development of thermal imaging infrared cameras, paid around $134m in cash to acquire the developer behind the world’s smallest drone in December 2016. Prox Dynamics uses FLIR’s Lepton micro thermal cameras on one of their 18-gram sized drones.The acquisition also allowed FLIR to extend its airborne sensor product line.

The acquisition of Tyco’s Security Solutions and Fire Protection by Johnson Controls was seen as a way to create synergies with both companies experiencing a sharp drop in share prices

Building solutions giant Johnson Controls’ acquired Tyco’s Security Solutions and Fire Protection in a $20m deal in January 2016. With both companies experiencing a sharp drop in share prices, and Johnson Controls’ suffering from the sudden end of China’s building boom, the merger was seen as a positive move to create synergies.

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