Konica Minolta, a Japanese-based manufacturer of business and industrial imaging products, announced on Tuesday that it has entered into an agreement to acquire a majority ownership stake in Mobotix, a German-based developer of video surveillance solutions.
According to a statement, Konica Minolta will acquire 65 percent of the company’s shares from Dr. Ralf Hinkel, the company’s founder and majority shareholder, as well as from other Mobotix shareholders.
With the acquisition, Konica Minolta said it intends to accomplish three objectives:
- Provision of next-generation network security solutions through cooperation in proprietary technologies of both companies. Konica Minolta aims to provide next-generation decentralized network security solutions by leveraging its industrial optical systems, including the 3D-LiDAR to scan, without errors or failed reports, wide areas at a high-precision level based on its proprietary optical technology, and Mobotix’s decentralized processing IP cameras and video management software (VMS) with a diversified processor.
- Development of workflow solutions across verticals. By utilizing the technology of both Mobotix’s decentralized processing IP cameras and VMS with Konica Minolta’s image sensing system, Konica Minolta will drive development of new products such as "Care Support Solutions" for monitoring residents at nursing care homes, or the solutions for monitoring workflow at manufacturing facilities that can help their workflow innovation.
- Broadening the distribution of Mobotix products and services. Konica Minolta will broaden the distribution of Mobotix products and their solution services by leveraging its global direct sales network and after-sales support and services systems.
According to a brief statement posted on Mobotix’s website, Dr. Hinkel has informed the company that he will stay on the supervisory board and continue to help with the strategic development of the company.
Jim McHale, director of UK-based market research firm Memoori, believes Mobotix’s shareholders received a rather generous offer given the company’s recent performance.
"The valuation agreed (upon) has not been disclosed other than it ranges between $177 million and $265 million and even at the lower figure it is 2.5 times revenue, which is a high price for a company having no growth and low profit margins over the last four years," said McHale. "We suspect that there are a number of IP video surveillance companies across the world that would have welcomed an opportunity to enter the beauty parade before their products become further commoditized."
