FLIR Systems, Inc. has announced that it has completed the sale of its Canadian security products subsidiary Lorex, Inc. in a transaction that also included its Toronto-headquartered small and medium-sized (SMB) security products business.
Acquiring the business is Chinese video surveillance giant Dahua, which previously had served as the primary OEM supplier of video surveillance products to Lorex.
Visible spectrum security services
Together, these businesses generated $140 million of revenue in 2017, according to FLIR, focusing on visible spectrum security systems that are sold globally to consumers and SMBs through various distribution channels. Under the terms of the transaction, FLIR will receive approximately $29 million in cash and expects to record a GAAP non-cash charge of approximately $23.6 million related to the divestiture.
Focus on critical infrastructure and enterprise
“This divestiture will focus our Security business on critical infrastructure and enterprise segments of the broader security market, which are attractive customer bases for our differentiating technologies,” said Jim Cannon, President and CEO of FLIR. “As we assessed our position and opportunities in the security and surveillance space, we determined that this business no longer fits our strategy to build intelligent, turn-key security solutions that are based on multiple wavelengths.”
“These are formidable assets that will complement Dahua’s already impressive strengths and resources,” Dahua said in a statement.