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T HE BIG news this month is Canon's offer to purchase Axis Communica- tions for a whopping $2.8 billion, a 50 percent premium over the stock's clos- ing price, the day before the offer. See our story on page 1. Will we see more of this kind of M&A; activity? Likely yes, as there are a number of niche video players in the market that larger companies may be interested in. Will we see premium prices like the $2.8 billion that Canon is prepared to pay? It's possible for another large player— perhaps one that's been growing like crazy and spent a ton of money on R&D; and investing in other capabilities. For the smaller niche players without the geo- graphic reach and customer base, that kind of premium is unlikely. Imperial Capital's Jeff Kessler noted that this transaction is 29.7x Axis' FY14 Tim Purpura, VP & GROUP PUBLISHER tpurpura@securitysystemsnews.com Brook Taliaferro, EDITORIAL DIRECTOR Martha Entwistle, EDITOR mentwistle@securitysystemsnews.com Amy Canfi eld, MANAGING EDITOR acanfi eld@securitysystemsnews.com Spencer Ives, ASSOCIATE EDITOR sives@securitysystemsnews.com Peter Macijauskas, E-MEDIA MANAGER pmacijauskas@unitedpublications.com SEND PRESS RELEASES TO: EDITORIAL OFFICE editor@securitysystemsnews.com Tel: 207-846-0600 ADVERTISING OFFICE Security Systems News 106 Lafayette St., PO Box 998 Yarmouth, ME 04096 Tel: 207-846-0600 NYC/LONG ISLAND Tim Purpura, VP & GROUP PUBLISHER Tel: 207-846-0600, Ext. 217 tpurpura@securitysystemsnews.com NORTHEAST & EASTERN CANADA Sarah Flanagan, REGIONAL SALES MANAGER 207-846-0600, Ext. 274 sfl anagan@securitysystemsnews.com SOUTHEAST/MIDWEST Kerry Rasor, REGIONAL SALES MANAGER Tel: 207-846-0600, Ext. 273 krasor@securitysystemsnews.com MARKETPLACE & LIST RENTALS Cath Daggett Tel: 207-846-0600, Ext. 300 cdaggett@securitysystemsnews.com Lise Dubois, PRODUCTION DIRECTOR EDITORIAL ADVISORY BOARD Bill Bozeman, CEO/President PSA Security Network Daniel G. Decker, President Safety Systems Inc. John Mack III, CEO Imperial Capital Jack Mallon, Managing Director Mallon & Associates Peter A. Michel, CEO iSECURETrac Richard Perry, President Perry Ventures Lisa Prosser, Owner/President General Alarm Inc. Tony Smith, President Security Finance Associates Greg Spurr, Vice President TD Bank N.A. Tony Wilson, President CMS SUBSCRIPTION INFORMATION www.securitysystemsnews.com/subscribe Security Systems News PO Box 47860 Plymouth, MN 55447-0860 Tel: 800-869-6882 Publishers of specialized business publications PRESIDENT & CEO EXECUTIVE VP J.G. Taliaferro Jr. Rick Rector For custom reprints or digital reuse, please contact our reprint partner, The YGS Group, by calling 717-505-9701, Ext. 100, or by visiting unitedpublications@theygsgroup.com Integrated video company rising? EBITDA. This is considerably higher than other video players that Imperial Capital keeps an eye on. As the front page story men- tions, Kessler believes that Canon's purchase last year of VMS provider Milestone and the likely purchase of Axis, is part of consolidation that he refers to as the "horizontal collapse in the $15 billion video surveillance market." Kessler believes that eventually we'll have a few one-stop-shop vendors that provide cameras, VMS, storage hardware and soft- ware, DVRs and NVRs, control dashboards. He calls it "the rise of the integrated video management company." There's a lot of evidence to back up Kes- sler's idea. In recent years we've seen video surveillance manufacturers get into access control, access control manufacturers get into video and one video company buying another. At TechSec in February, we took a look at whether this M&A; and expansion activity affects the "openness" of security technol- ogy and work on standards, what it means for integrators and whether it signals progress or foreshadow a return to pro- prietary systems. Kratos' CTO Chris Peckham led the "Propri- etary Jail: Is the industry bailing on open systems?" panel. He was joined by a consultant Ben Butchko, a manu- facturer, Joe Grillo, and another integrator, CONTAVA's David Sime. As you can imagine, opinions on the topic were varied. Look for a detailed report on that discussion next month. Martha Entwistle A big thank you from us Security Systems News is proud to say that our TechSec Solutions 2015 conference last month was a resounding success. That success was the result of a number of efforts that extended beyond our own. Our advisory board members were excep- tional. Not only did they collaborate with us to come up with the most compelling and relevant content, they contributed to the conference in many other ways, includ- ing serving as moderators. Thanks go out to Jeremy Brecher of Diebold Security; Ray Coulombe, Security- Specifi ers.com; Rob Hile, SureView Systems Inc.; Ralph Nerette, Dana-Farber Cancer Institute; Chris Peckham, Kratos PSS; Sha- ron Shaw, Tech Systems Inc.; and Steve Van Till, Brivo Systems. A special thanks goes out to Bob Beliles of Tyco. He was scheduled in advance to moderate "Want business intelligence? Ask the retailers" panel, featuring three of our "20 under 40" end-user recipients. At the last minute—because the originally sched- uled moderator was stranded in a Northeast snowstorm and couldn't make it to Delray Beach—Beliles graciously agreed to lead an additional panel discussion: "Who's the boss of video surveillance?: IT vs. physical security." He rearranged meetings to help us out at TechSec, and did a great job mod- erating a lively educational session. We thank all TechSec speakers for their informed and insightful discussions, and we certainly thank our featured speakers, Brian Katz of Google and Ralph Nerette of Dana-Farber Cancer Institute. Great discussion, debate and network- ing—that's what TechSec is all about. See you there next year! — Martha, Amy & Spencer Our customers always come first. That's why our access control solutions are scalable and backward compatible, with an unconditional 2-year warranty. It's that simple. 800.445.5560 • custserv@galaxysys.com access control solutions with stellar performance SECURITY SYSTEMS NEWS MARCH 2015 www.securitysystemsnews.com EDITORIAL 24