Vicon stamps passport with purchase of German video supplier
HAPPAUGE, N.Y. - Vicon Industries, a provider of digital video management systems, completed its year with a purchase of Germany-based Videotronic Infosystems GmbH.
Videotronic, which was purchased for approximately $1 million, will become part of ViconÃ¢â‚¬â„¢s European unit. The deal gives the European division an opportunity to secure a presence in the German video security market, according to Ken Darby, president and chief executive officer of Vicon.
Videotronic, a 30-year-old video supplier, has operated under bankruptcy protection since June 2004. Vicon infused approximately $500,000 of capital into the company and Darby said the company is stable.
Ã¢â‚¬Å“(Videotronics) is on solid ground,Ã¢â‚¬Â he said, Ã¢â‚¬Å“and we expect them to do great.Ã¢â‚¬Â
The company also plans to integrate the Vicon product line to expand VideotronicÃ¢â‚¬â„¢s offerings.
Ã¢â‚¬Å“We intend to take our products and put them into their existing range,Ã¢â‚¬Â Darby said. He also said adding ViconÃ¢â‚¬â„¢s products will fill voids in VideotronicsÃ¢â‚¬â„¢ product line.
This is the first acquisition the company has made since 1999.
Coinciding with its acquisition announcement, Vicon also reported its fourth quarter and fiscal year 2004 results. For the fourth quarter, net sales were $13.4 million, compared with $13.8 million in the previous yearÃ¢â‚¬â„¢s period.
For the 2004 fiscal year, net sales topped out at $53.5 million, compared with $52 million in 2003.