Infinova gets into DIY

MONMOUTH JUNCTION, N.J.—Video surveillance provider Infinova is getting into the DIY market, with planned acquisition of Swann Communications, an Australian company that has offices in the United States.

Founded in 1987, Swann provides bundled video surveillance systems that include video cameras, infrared cameras, DVRs, NVRs and video monitors. Its products are sold through big box retail stores.

The deal also brings with it 100 employees who have expertise in the DIY market, the connected home space and “general video surveillance market knowledge from a different perspective [than Infinova],” Stephan G. Cannellos, Infinova EVP strategic business development, told Security Systems News.

Reuters reported that Infinova “plans to acquire a 97.5 percent stake in Swann Communications for $87.2 million.” That is the payment to the equity holder; the enterprise value is higher, according to Michael McManus of Imperial Capital. Imperial Capital represented Swann in the deal.

“The fact that you can now get professional level cameras at Sam's Club or Walmart  [points to a] changing dynamic [in the security industry]. It's not just kiddie cams [at big box stores], in some cases it's IP-based cameras," McManus said." It's a new dynamic to have professional quality equipment come from that market,” he said.

Cannellos said that the deal means "wider and broader offerings from the collective Infinova group portfolio with an increased efficiency in the supply chain,”

Asked what percentage of Swann's products are professionally installed, Cannellos said that information is not available but that it would be safe to estimate that 15- to 25 percent of the products are professionally installed.

It is envisioned that Swann will continue to drive its product design but will take advantage of Infinova's resources in the Far East to speed manufacturing and shipping, Cannellos explained.

The transaction is subject to regulatory approvals and is expected to be closed by the end of the year.