Pelco to exit access control biz

I don't think this is entirely surprising, but Pelco has announced it's exiting the access control business. Maybe it's just coincidence, but it's PR gospel that Friday afternoon is the best time to announce bad news... Not that this is necessarily bad news. A number of people have commented to me that access is not Pelco's core competency and they wouldn't be surprised to see it annexed. I think Pelco has always had a great focus on their strategy and not deviating from it, and this may be good news for the company in the end. I don't have a web link for the release, so here's a cut and paste until I can get an interview or two done: Pelco to Exit Access Control Business and Close Indianapolis Facility Clovis, California (January 30, 2009) — Pelco management announced to its employees today that in consideration of the current economic situation, the company has decided to take aggressive steps in order to focus resources on supporting Pelco’s core video security business. Pelco President and CEO Dean Meyer stated that “As the general economic outlook continues to worsen and as forecasts call for a prolonged challenge throughout 2009, we as a company are forced to continually adapt to market demands. In response, we have initiated the necessary planning to exit the electronic access control (EAC) business with our Intelli-M product line. This decision requires that we explore the options to sell or spin-off the Intelli-M EAC business, as well as to close the EAC business in its entirety.” Management further noted that these options are being explored, and that regardless, the company will be closing the Pelco Indianapolis facility which primarily houses the resources for its access control development along with elements of general product support and training. Meyer added that, “As we have indicated on numerous occasions, we are forced to monitor the market and be prepared to make difficult decisions swiftly in response to whatever challenges we are presented. This is another such decision but one that is necessary for us to maintain focus on efforts that are expected to best help Pelco weather the storm.” According to management, employees impacted by this decision have been informed, and those placed on layoff status will be offered severance, outplacement and counseling services. Likewise, Pelco will provide additional information to its customers on future plans for product support, warranty, repairs, etc., within the next 30 days. “I would like to thank all of the employees in Indianapolis as well as those throughout the company who have supported our Intelli-M EAC business over this past year. Even though excellent progress has been made in the product offering and toward future releases, we must consider the realistic timing of future sales growth and the associated support costs between now and then. I ask for your support and understanding with this difficult decision,” said Meyer. I don't think this was part of the plan along, though. When I spoke with Dean Meyer, he expressed what seemed to be genuine enthusiasm for the access control division: Similarly, Pelco has taken Integral's access control system and run with it. "Pelco was working on its own access control prior to the merger," Meyer said. "Now Integral brings its own, and we've moved very quickly on marrying that together and presenting that to the channel." So, will Pelco's access system eventually be as universal as its cameras? "Let me dream," Meyer joked. "But Pelco's got a hell of a brand, and integration is becoming more important. We all know that." As for possible buyers? I'm not sure. It's interesting that Vicon just announced an access control platform. Guess they're out. What about Mace? They've talked about adding access. That wouldn't shock me. Not sure what the price tag would be, though.


Hi Sam,

I see this as good news. The sooner companies eliminate weak divisions and products, the better the industry will be. With too much supply, consumers get confused and vendors having difficulties making money.

The access control line was a minor part of the Integral acquisition. Even the VMS/DVRs from Integral will require a serious examination as the duplication between Pelco DVRs and Endura still seems wasteful.

This is only the beginning (for Pelco and the industry in general) but the quicker and more vigorously companies make these cuts, the stronger the industry will get.