FAST Video is looking NICE
RUTHERFORD, N.J.--NICE Systems plans to make its first acquisition in the security market in early 2006 when it completes the purchase of FAST Video Security AG, a Swiss-based developer of video systems, including digital video recorders.
The $21 million transaction, which is subject to closing conditions, includes the potential for $12 million in additional payouts over the next three years, if the acquired FAST Video meets certain performance milestones.
If completed, the deal would increase NiceVision's IP solutions, adding encoders and decoders to its current line-up of video management, video analytic and digital video recorder products. NiceVision is NICE Systems' video division.
"It does provide an increase in depth and breadth of offering," said Ian Ehrenberg, vice president and general manager of the Americas for NiceVision.
One benefit NiceVision expects from the FAST Video deal is an increase in its reach. "In Europe, they have a more developed channel than we have," said Ehrenberg.
FAST Video is also known for serving the gaming market, which complements NiceVision's approach since it also focuses on the gaming industry, as well as the public sector and transportation markets.
Officials from NICE Systems expect FAST Video will add $10 million to the company's top line in 2006. The company so far predicts revenues of between $365 million and $373 million this year.
Ehrenberg said the company plans to continue an existing relationship between FAST Video and Honeywell, where Honeywell private labels some of FAST Video's products. He also said once NICE Systems completes its purchase of FAST Video, additional details will become available on plans to maintain operations in Switzerland.