“The terms of the deal including the price have not yet been agreed and there is no certainty the talks will lead to a binding agreement,” Visonic said late last month.
Visonic manufactures home security systems and components and personal emergency response systems (PERS), plus location systems for hospitals, prisons, museums and other large organizations.
Founder and chairman Yaacov Kotlicki, who controls 70 per cent of the company, has granted Tyco an option to buy all his shares. Tyco has a 60-day exclusivity agreement with Visonic to enable negotiations to continue.
In May, Tyco CEO Ed Breen told investors the company was closing in on a $110 million acquisition of an unspecified target.
“It is only $110 million but it is technology that actually has revenue with it and that really fits in to one of our core platforms and will really give us a competitive advantage,” he said.
In June, Visonic announced a partnership with iControl to integrate Visonic security peripherals into the iControl OpenHome software platform. ADT, a Tyco company, recently entered the mass-marketed home control ranks with its Pulse offering, which is based on a platform by iControl. The solution offers remote management of security cameras, thermostats and limited lighting controls.
Visonic President and CEO Avi Barir explained to SSI in November the company’s plans to introduce five alarm systems based on a new PowerG wireless technology during the first half of 2011.
While wireless alarm systems have primarily served only the residential market, the PowerG technology would allow Visonic to provide newfound applications in the commercial space, Barir told SSI.
“PowerG changes the rules of the game in this field. Up until today, the commercial market was a marginal market for us. With PowerG we have an opportunity to turn it into a main market,” he said.
