Video security deal
IndigoVision acquires Lisbon-based software firm Agorasys
Max Thowless-Reeves became chairman in management changes
IndigoVision, the Edinburgh-based video security specialist, has acquired Portuguese software company Agorasys in a £2.6m (€3m) deal.
Agora is a spin-out from Instituto Superior Tecnico, part of the University of Lisbon and provides security network monitoring software
It reported revenues of €1.3m for the year ended 31 December 2018 and operating profit of €100,000, equal to its net assets.
Agora will continue to be run by the existing management team. Over the next year, the group intends to invest an additional €0.5m in further developing the Agora software for the benefit of IndigoVision’s enterprise customers.
It is expected that Agora will only become a material contributor to the group’s financial performance following completion of this transitional period and investment phase.
Shareholders in Agora will receive €287,000 upon completion, comprised of approximately €212,000 payable in cash and the issue of 17,211 IndigoVision shares to each of founders Pedro Soares and Bernado Motta.
A final payment of up to €250,000 in shares will be payable to the management shareholders, on achieving certain revenue targets for the year ending 31 December 2019.
IndigoVision said the acquisition of Agora represents “an important building block” in meeting the board of IndigoVision’s ambition to turn the group into one of the leading players in the video security solution space.
The first stage of the turnaround plan started two years ago with the restructuring of the board and the executive team. Max Thowless-Reeves became chairman, while chief operating officer Paul Theasby was among those who left. Vikki Macleod was appointed a non-executive director.
While this process will remain ongoing, the company says much of the “heavy lifting” has now been done.
“Our revenues are growing and we have turned significant losses into profits, we have cash in the bank and a robust balance sheet with substantial working capital availability from our new debt facility,” said the company in a statement.
“The next stage of our plan involves looking outwards and carefully analysing the market in which we operate. The industry we are in is highly fragmented with no dominant players nor dominant business models for the markets we target.
“A customer can select from a host of companies that provide either software or hardware or a combination of both.
“The group has, at points in its history, been a developer of software, a manufacturer of cameras or a supplier of OEM cameras. Over the last six months the board has been considering in depth what would be the optimal long term strategy and the culmination of this process is the launch of our new business plan referred to as IndigoVision 2020.”
IndigoVision 2020 positions the group as a provider of next generation end-to-end video security management solutions that deliver safety, security and business intelligence.
“We have many of the building blocks of this strategy already in place and the acquisition of Agora further enriches the group’s software offering.
“Our focus in 2020 and beyond is to develop pathways to the innovative technologies we wish to add to our end-to-end solution and to engineer our software capabilities so that we can swiftly build and incorporate other functionality.”