FLIR has divested its economy CCTV brand Lorex to Dahua for a nominal $US29 million as part of renewed focus on critical infrastructure and enterprise markets. FLIR bought Lorex in 2012 for $60 million.
FLIR said that despite falling sales, Lorex generated $US140 million in revenue last year and FLIR expects to record a GAAP non-cash charge of approximately $23.6 million related to the sale.
“This divestiture will focus our security business on critical infrastructure and enterprise segments of the broader security market, which are attractive customer bases for our differentiating technologies,” says FLIR President and CEO Jim Cannon. “As we assessed our position and opportunities in the security and surveillance space, we determined that this business no longer fits our strategy to build intelligent, turn-key security solutions that are based on multiple wavelengths.”
Dahua served as the primary OEM supplier of video surveillance products to Lorex prior to the acquisition. Lorex, which will continue to operate independently as an autonomous business unit, brings to Dahua strong relationships with leading North American retailers, according to a statement.
“These are formidable assets that will complement Dahua’s already impressive strengths and resources,” the company said.