Security Business

JUL 2019

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12 Security Business / / July 2019 SECURITY WATCH BY JOEL GRIFFIN, EDITOR, SECURITYINFOWATCH.COM Video Surveillance A New Day Dawns at Pelco Iconic video surveillance manufacturer set to chart new industry course under private equity ownership Schneider Electric has sold video surveillance pioneer Pelco to California-based private equity firm Transom Capital Group for an undisclosed sum. For Pelco, one of the physical security industry’s most iconic brands and a proverbial powerhouse in the analog space, the sale marks the end of an era for the company that saw its market share decline as the industry transitioned away from analog to more advanced IP-based technologies. The purchase of Pelco by Transom, whose investment portfolio until now has largely consisted of consumer product companies, the pairing would seem to be somewhat of an odd fit but, according to Russ Roenick, Managing Partner at Transom Capital Group, the firm simply looks for businesses where they believe they can make a difference. “For us, it is really about the functional fit of what the businesses needs are and whether we feel like, as investors and as operators, we have the experience to lean in and add value,” Roenick says. “If you look at our broader portfolio, we have invested in IT services and software businesses, consumer product businesses and retail concepts. We will invest in any industry as long as the characteristics of the target that we’re investing into fit with our skill set and expertise as an investor.” Roenick says they were attracted to innovative nature of the video surveillance market and the strong brand reputation that Pelco has built over the years. “In terms of the industry, it’s already a very large and nicely growing marketplace,” he says. “We saw the opportunity (to invest in) Pelco, given that it has a great brand, has been a leader in the space for many years and that we could lean in and help the company.” Changing Perceptions Pelco CEO Jean-Marc Theolier says the company has undergone a transition over the past three years to change the industry’s perception of the company as being hardware-centric manufacturer to one that can also deliver cutting-edge software. Under Transom’s ownership, Theolier says they plan to continue grow these offerings. “We balance ourselves today between hardware – the cameras – and software, including the firmware which goes inside the cameras and delivers the quality that Pelco has been known for from the beginning,” Theolier says. “We are building end-to-end video solutions.” As part of the company’s strategy that was unveiled at ISC West, Theolier says Pelco will be focused on providing a new cloud services to deliver next-generation video analytics and simplify surveillance system maintenance. “This will allow Pelco and systems integrators to take managing the health of the video system to the next level,” he says. “The cloud is something we have been investing in for the past year and half to create the infrastructure that we need for this new offering that will be commercialized by October 2019. That’s the big next step for Pelco.” While not divulging specific details, Roenick says that the industry can definitely expect to see changes at Pelco in the coming months. “We are investors with a perspective on how to grow companies both top line and bottom line, so there should be a lot of changes,” he sayd. “We will be working together (at Pelco headquarters) to determine what that program is going to look like...we will start making changes and rolling things out over the course of the next 90 days.” While Transom sees great potential in Pelco, Roenick says the firm does not currently have any plans to acquire any other companies in the security market. “(This acquisition) was more about our fit with Jean-Marc and the key members of his leadership team, as well as the needs the business had in order to grow,” Roenick says. “Those lined up really well with our core competencies as an investor to be successful.” ■

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