Vancouver’s Avigilon buys $80 million in patents

Capping a year of bunker revenue growth, Avigilon acquires a D.C.-area company’s entire patent portfolio for $80.3 million

One of B.C.’s biggest acquisitions in 2013 isn’t really an acquisition.

Late last week, Avigilon Corporation announced that it had purchased $80.3 million worth of patents and licenses from ObjectVideo, a Virginia-based developer of video analysis technology. Instead of acquiring ObjectVideo, Aviligon will acquire 76 patents, 50 patent applications and all of ObjectVideo’s licensing agreements. Both companies develop video analytics software for CCTV and security camera systems.

The acquisition caps a bunker year for Avigilon: in the first nine months of 2014, the company reported $191.9 million in revenue, up 57 per cent from $122 million over the same period in 2013, with particularly strong growth coming from international sales. The company reported a profit of $22.1 million in the first three quarters of 2014, up 50 per cent from $14.8 million over the same period in 2013. The company has also made use of its growth: in January, Avigilon acquired VideoIQ for $31 million, a U.S.-based video analyitcs startup with a portfolio of live detection and machine-learning patents.

“The future of the video surveillance industry is in video analytics,” said Alexander Fernandes, Avigilon’s president, CEO and chair, in a statement. “The acquisition not only bolsters Avigilon’s portfolio of intellectual property, but it also brings with it a recurring royalty revenue stream.”