Videolarm sells for $45m
In what seems to be a good sign for the security industry in general, large component manufacturer Moog (not, I think, the maker of the legendary Moog synthesizer) has purchased Videolarm for a princely sum of $45 million. I say "good sign" because it seems as though Moog is diversifying its assets to avoid getting hit too badly by the economy, and it seems to think security is a pretty safe bet. Assuming their M&A team don't suck at their jobs, its good that smart money guys don't think security will be too badly hit. I say "princely sum" because, without knowing very much about the deal, it seems $45 million to acquire a manufacturer with $19.5 million in 2008 revenues is a pretty good deal for Videolarm. If camera and housing manufacturers are being valued at 2.25x trailing 12 months sales, that's great. The company paid a lot, too, for QuickSet, which makes PTZ motors and gears. So maybe Moog is cornering the market on pieces and parts of IP cameras. It will be interesting to see what else they buy in security. I'm trying to line up a call with them.