FLIR buys DVTEL for $92m

WILSONVILLE, Ore.—In a deal that builds out its commercial security capabilities and adds software expertise, FLIR Systems, based here, on Nov. 30 bought video surveillance provider DVTEL for $92 million cash.

Known in the security world for its thermal cameras and its 2012 purchase of Lorex, FLIR is a $4 billion enterprise that makes visible-light imaging systems, locater systems, measurement and diagnostic systems and threat-detection solutions.

“This deal expands FLIR's presence in commercial, from SMB to enterprise-class customers,” John Mack, Imperial Capital EVP, told Security Systems News. Imperial Capital advised DVTEL on the deal.

“They had a smattering of commercial products, but this gives FLIR a much more full line of cameras, software and VMS,” Mack said.

With its large-company infrastructure and international sales channel, FLIR “will be able to bring DVTEL's product line to more customers worldwide,” he said.

Beyond the fundamentals, DVTEL“has a couple of key initiatives [such as cybersecurity and cloud] underway that made it a more attractive target,” Mack said.

DVTEL announced its cybersecurity initiative at ISC West. Additionally, “the fact that it has built out a cloud-based solution was interesting to FLIR,” he added.

Aside from former DVTEL president and CEO Yoav Stern, who will not join FLIR, most of the team is expected to stay on, Mack said. DVTEL COO Zvi Peled is working with FLIR on the transition.

In addition to VMS, software and cameras, DVTEL also sells servers and encoders.

Founded in 2000, DVTEL is a private company with 130 employees. In addition to its Ridgefield Park, N.J., headquarters, it has offices in Florida, Texas, Illinois, California and Massachusetts. It also has international offices in Mexico, United Kingdom, India, Australia, China and Singapore.

FLIR anticipates this transaction will be neutral to 2015 net earnings and accretive thereafter.