Avigilon Acquires ObjectVideo's Entire Patent Portfolio and Licensing Program
Avigilon acquires strategic intellectual property and continues to build video analytics patent portfolio
Avigilon to host conference call today at 8:30 a.m. ET 5:30 a.m. PT
VANCOUVER, Dec. 18, 2014 /CNW/ - Avigilon Corporation ("Avigilon") (TSX:AVO), a leading global provider of end-to-end security solutions, today announced that it has completed the acquisition of the entire patent portfolio and the patent licensing program of ObjectVideo, Inc. ("ObjectVideo") for cash consideration of US$80.3 million (the "Acquisition").
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 US and international patents and over 50 US and international patent applications. In addition to the foregoing, until January 31, 2015 ObjectVideo will continue to generate additional US 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 US and international patents, and 202 US 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.
CONFERENCE CALL DETAILS
Avigilon will hold a conference call to discuss the Acquisition on Thursday, December 18, 2014 at 8:30 a.m. ET; 5:30 a.m. PT. The call will be hosted by Alexander Fernandes, founder, president, CEO and chairman of the board, and may be accessed as follows:
| DATE: |
Thursday, December 18, 2014 |
| TIME: |
8:30 a.m. ET; 5:30 a.m. PT |
| DIAL IN NUMBER: |
647-427-7450 or 1- 888-231-8191 |
| TAPED REPLAY: |
416-849-0833 or 1- 855-859-2056 |
| LIVE WEBCAST: |
http://ir.avigilon.com or http://bit.ly/13dgEla Webcast will be archived for one year |
About Avigilon
Avigilon Corporation is defining the future of protection through innovative end-to-end security solutions. Avigilon's industry-leading HD network video management software, megapixel cameras, access control and video analytics products are reinventing the security market. Information about Avigilon can be found at www.avigilon.com.
Forward Looking Statements
Certain statements contained in this news release, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Forward-looking statements normally contain words like 'believe', 'expect', 'anticipate', 'plan', 'intend', 'continue', 'estimate', 'may', 'will', 'should' and similar expressions, and include without limitation statements respecting Avigilon's areas of planned growth and spending. Such statements are not guarantees of future performance and are based on management's expectations and assumptions regarding historical trends, current conditions and expected future developments, as well as other factors that management believes are appropriate in the circumstances. Management has based these statements on estimates and assumptions that they believed were reasonable when the statements were prepared, including without limitation assumptions respecting ObjectVideo's patent generation program, the significance of video analytics to the future of the surveillance industry, availability and amount of any future revenue streams, and the overall impact of the Acquisition on Avigilon's future operations. Actual results could be substantially different due to the risks and uncertainties associated with and inherent to Avigilon's business. Important risks that could cause such differences include, but are not limited to, ObjectVideo's ability to file patent applications in a timely fashion or at all, the direction in which the surveillance industry moves, the ongoing ability and desirability of licensees to continue paying Avigilon under the assigned patent license agreements on a timely basis or at all, the enforceability of intellectual property rights in certain jurisdictions, the length of sales cycles, rapid technological advancement, competition, the availability of critical inputs, foreign exchange rate occurrences and doing business in foreign countries. Additionally, differences could arise due to events that are announced or completed after the date of this news release, including mergers, asset and corporate acquisitions, other business combinations, and divestitures. More information about the risks and uncertainties affecting Avigilon's business is provided in the "Risk Factors" sections of each of Avigilon's final short form prospectus dated March 31, 2014 and Annual Information Form dated March 28, 2014; the foregoing documents are available under Avigilon's profile on SEDAR at www.sedar.com. Although Avigilon has attempted to identify factors that may cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements or information, there may be other factors that cause actions, events or results not to be as anticipated, predicted, estimated or intended. Also, many of the factors are beyond the control of Avigilon. Accordingly, readers should not place undue reliance on forward-looking statements or information. Avigilon undertakes no obligation to reissue or update any forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements and information herein are qualified by this cautionary statement.
SOURCE: Avigilon Corporation
Investor relations: Kristen Dickson, TMX Equicom, T: (416) 815-0700 ext.273, [email protected]; Media relations: Stephanie Von Zuben, Avigilon Corporation, T: (604) 629-5182, Ext 2206, [email protected]
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