International. FLIR Systems announced that it sold Lorex, its Canada-based security products subsidiary, along with its small and medium-sized Toronto-based security products company, to China-based video surveillance giant Dahua.
According to a statement issued by FLIR, these companies, whose products are sold globally to both consumers and small and medium-sized businesses through various distribution channels, generated $140 million in revenue in 2017. There are over 100 products involved in the sale of these two businesses, including all visible spectrum SMB Products from Lorex, Digimerge and FLIR.
Under the terms of the agreement, FLIR will receive approximately $29 million in cash and expects to post a non-cash GAAP charge of $23.6 million related to the divestment.
FLIR initially acquired Lorex in late 2012 for CAD$59 million as part of an effort to bring thermal imaging technology to a broader customer base.
Although a company spokesperson said FLIR reduced the cost of ownership of thermal sensors "significantly," the company no longer views the consumer segment as strategic to its security business and shifted its focus to the critical infrastructure and enterprise vertical markets.
"This divestment will focus our security business on critical infrastructure and enterprise segments of the broader security market, which are attractive customer bases for our differentiating technologies," Jim Cannon, FLIR president and CEO, said in a statement. "As we evaluate our position and opportunities in the security and surveillance space, we determined that this business no longer fits our strategy to build smart, turnkey security solutions based on multiple wavelengths."
Leave your comment