Security Dealer & Integrator

AUG 2018

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14 Security Dealer & Integrator / August 2018 Read the full analysis: SECURITY WATCH Vendor News BY JOEL GRIFFIN, EDITOR, SECURITYINFOWATCH.COM at the operating company level com- ing out of Chapter 11, Calderon says there was no better way to demon- strate they are a new company than by adding "Costar" to the end of it. He adds that the products themselves will retain the Arecont Vision name. "The brand is an important part of the assets purchased by Costar, and there is no need to move away from the brand," Calderon says. According to Calderon, the Contera product suite will remain a big part of the company's plans mov- ing forward. He also stresses that dealers, integrators, distributors and other partners will see no changes in how the company goes to market or operates on a day-to-day basis. For Costar, Pritchett says the acquisition will provide two import- ant new capabilities: a worldwide sales force that can expand their limited coverage and yield multiple cross-selling opportunities, as well as multi-sensor technology to add to the company's product offerings. ■ In May, Arecont Vision filed for Chapter 11 bankruptcy protec- tion as part of an effort to restruc- ture its debt and clear its balance sheet in order to compete in what has become a new era for the secu- rity industry – where end-users are increasingly looking for a one-stop shop from their integrator and man- ufacturer partners. With the days of making a single component of the video ecosystem – as Arecont Vision had done in the past with megapixel cameras – slowly coming to an end, the company at ISC West in April rolled out its more comprehensive Contera solutions, which include megapixel cameras (Arecont Vision Mega and Contera IP), video management system soft- ware (ConteraVMS), video recorders and NVRs (ConteraCMR), and cloud- based web management services (ConteraWS). In July, a bankruptcy court approved the sale of Arecont Vision to video surveillance manufac- turer Costar, which began the era of Arecont Vision Costar LLC – as the company joined existing Costar brands CohuHD Costar, Costar Video Systems, Innotech and IVS Imaging. According to Raul Calderon, President of Arecont Vision Costar, going through the Chapter 11 process was helpful in enabling the company Arecont Vision Charts New Path Under Costar Ownership Surveillance manufacturer recapitalized and reinvigorated following its emergence from Chapter 11 to shed its debut burden, enabling it to now fully devote itself to recapitaliz- ing the business to address the changing market and its product portfolio. "Elimination of this large financial burden now enables a significant portion of our profits to be rein- vested into the business, instead of servicing the pre- vious debt," Calderon says. From the Costar, per- spective, James Pritchett, the com- pany's CEO and President, says the products are a great addition to its current offerings, and Arecont fits with Costar's strategy of acquiring firms that design and manufacture their own surveillance products. "Together with our recent acquisi- tions, the addition of Arecont trans- forms our business from an OEM value-added business to one where 75 percent of our revenues are from products that are designed and man- ufactured," Pritchett explains. "Even though the Costar companies cur- rently sell into the retail and financial markets, there was very little overlap of customers, so the acquisition sig- nificantly expands our overall cus- tomer base." Although there were legal require- ments for Arecont to change its name "Elimination of this large financial burden now enables a significant portion of our profits to be reinvested into the business." – Raul Calderon, President of Arecont Vision Costar

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