Moog buys Videolarm, eyes international expansion
DECATUR, Ga.--Videolarm, a manufacturer of video surveillance accessories, like housings and mounts, has been purchased by Moog, a global and publicly traded manufacturer of precision control components and systems. According to a release, Moog paid $45 million for Videolarm, which reportedly generated $19.5 million in revenue in 2008.
At the recent TechSec Solutions conference, this nearly 2.5x revenue valuation of the company had many talking about the high value being placed on security-focused companies, particularly those working in surveillance.
Ray Pagano, president, CEO, and founder of Videolarm, said he had an ongoing relationship with Moog starting with its 2007 acquisition of QuickSet, which makes PTZ motors that Videolarm uses in its products. When talk turned to acquisition, the attraction was mutual, Pagano said.
While Moog was looking to diversify its offerings and capitalize on its entry into video surveillance, “our big move is really on the international level,” Pagano said. “We can leverage a lot of their warehousing facilities and bring products to a lot of other shores that we wouldn’t be able to do on our own.”
Currently, about 20 percent of Videolarm’s sales are overseas, but “we’re looking to do a lot more than that,” said Pagano. Specifically, he said Videolarm’s high-end offerings, such as its new air-conditioned outdoor housing or purged dome system, are “primed for the Middle Eastern markets.”
Pagano, the rest of the management team, and all of the Videolarm employees will remain with the company, and he said customers should only expect service to be better now that products will likely be warehoused closer to their destinations.
“Faster response time is what it’s all about these days,” Pagano said.