Canon Inc. has made an offer of 23.6 billion Swedish krona (about $2.81 billion) to acquire Axis AB (Lund, Sweden), a manufacturer of video cameras and communication systems for networked security and video surveillance. The board of directors of Axis has recommended acceptance of the offer of 340 Swedish krona (SEK) per share.
At the same time, Panasonic announced it had agreed to acquire Video Insight Inc. (Houston), a developer of video management software.
Canon said it wanted to make Axis a consolidated subsidiary that would operate as a separate legal entity within the Canon Group of companies. Canon said the move would be in line with its 2011 policy of increased profitability through global diversity.
The acquisition would help Canon become the global leader in network surveillance camera systems, the company said. Canon added that the combination of Canon and Axis would be complementary, combining Canon excellence in optics and imaging technologies and Axis image processing and networking capabilities.
The two companies would also benefit in terms of their combined intellectual property and distribution and servicing networks. Axis has a well-established worldwide network of 75,000 business partners, including system integrators. With Axis joining the Canon Group, Canon will be able to add Axis’s distribution and service channels for network system products.
Axis was founded in 1984 by Martin Gren and Mikael Karlsson. After starting by selling interfaces and PC printer servers for IT departments, it used its knowledge of networking protocols to move into the provision of networked video for use in industrial processes and surveillance.
In 2014, Axis made a net profit of 539 million SEK (about $64 million) on total revenues of 5,450 million SEK (about $650 million). This was up compared to 2013, when the company made a net income of 479 SEK (about $57 million) on total revenue of 4,717 million SEK (about $560 million).
Panasonic Goes For Education, Software
Founded in 2002, Video Insight provides video management software for security systems in the financial, government, retail and transportation sectors as well as in 6,500 school and college campuses.
As part of the agreement, Video Insight will continue to be led by founders Robert Shaw and James Whitcomb and to develop its open platform system, which supports 2,500 camera models from more than 100 manufacturers.
"We believe this partnership will help us accelerate innovation, enhance product development and allow us to provide our customers with better security solutions for years to come," said Shaw, CEO of Vision Insight.
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