FLIR announced this week that it has agreed to acquire DVTel. FLIR is a supplier of sensing solutions including thermal imaging systems. DVTel is a supplier of professional network video surveillance solutions, particularly for enterprise-segment installations.
This move follows FLIR’s acquisition of another video surveillance equipment vendor, Lorex, back in 2012. This allowed FLIR to enter the market for consumer and DIY video surveillance equipment and, at the same time, expand its presence in the market for professional video surveillance equipment. The acquisition of DVTel means that FLIR is expanding its presence in the professional market yet further, a market which IHS forecasts will be worth $15.7 billion in 2015.
Despite a number of mergers and acquistions in this market in recent years, the supply base remains fragmented. IHS estimates that the largest fifteen vendors accounted for just 52% of market revenues in 2014. Combined together, IHS estimates that FLIR/DVTel would have still been outside the largest fifteen.