2-1-18 6:55 PM EST | Email Article
   By Maria Armental 
 

Motorola Solutions Inc. (MSI) has reached a deal to buy security-services firm Avigilon Corp., a move focused on the growth of analytics and video surveillance that company officials say could benefit from security concerns over China.

At 27 Canadian dollars ($22) a share, an 18% premium over Avigilon's closing price Thursday, the deal carries a so-called enterprise value of about $1 billion including debt.

"Quite frankly, much like mission-critical communications, I think there is a growing aversion to having a Chinese provider do critical video surveillance and security," Motorola Chief Executive Gregory Brown said in a conference call Thursday afternoon, according to a call transcript. "And I think that trend will lend itself well to us as well."

Surveillance cameras made in China are widely used in the U.S., including those made by Hangzhou Hikvision Digital Technology Co., the world's largest maker of surveillance cameras.

In November, The Wall Street Journal reported some security vendors in the U.S. refuse to carry Hikvision cameras or place restrictions on their purchase, concerned they could be used by Beijing to spy on Americans. The General Services Administration also removed Hikvision from a list of automatically approved suppliers. The Wall Street Journal reported the Chinese government has a 42% stake in Hangzhou Hikvision.

Based in Vancouver, Avigilon focuses on advanced security surveillance, including video analytics. Its products are used by a range of commercial and government customers, including in airports and government facilities.

Motorola, based in Chicago, focuses on public-safety systems, including two-way radios used by police officers and others. The company traces its roots to wireless communications pioneer Motorola Inc.

The deal, which has secured support from shareholders representing about 12% of Avigilon's outstanding shares, is expected to close by the end of the second quarter, Motorola said.

Motorola's shares rose 1.6% to $100.70 in after-hours trading.

 

Write to Maria Armental at maria.armental@wsj.com

 

(END) Dow Jones Newswires

February 01, 2018 18:55 ET (23:55 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
Add a Comment

Try Premium Membership today. Your first 14 days are free of charge. Start my Premium Membership Trial.
Sponsored Links
Buy a Link Now
Sponsor Center
Content Partners