Vicon Industries Inc. and IQinVision Inc. mutually announced that they have entered into a definitive merger agreement that has been approved by both companies’ boards of directors. The announcement stated the companies expect the merger “to create a global provider of integrated solutions to the video security market. Vicon is a designer and producer of video security and surveillance systems. IQinVision designs and produces high-performance HD megapixel IP cameras.”
The companies stated that both product offerings with retain their existing branding, and both companies will continue to sell into and service their existing channels and customers. “Customers will see no differences in sales, service and support levels compared with prior to the merger,” they said.
Subject to customary closing conditions as well as shareholder approval, the merger is expected to be completed in “Vicon’s September quarter,” the companies’ announcement said. The agreement’s terms call for IQinVision shareholders owning approximately 50 percent of the outstanding common stock of the combined company. IQinVision is a privately held company. After the merger, Vicon will have approximately 9 million shares outstanding, it added. Additionally, Vicon said it “expects to declare a special cash dividend of $0.55 per share payable with respect to shares of Vicon common stock held by shareholders of Vicon as of the record date prior to the completion of the merger and payable to such holders within 15 days after the completion of the merger.”
Ken Darby, chairman and chief executive officer of Vicon—who is delaying his retirement and will lead the company until his successor is named—commented, “Vicon is thrilled to join forces with IQinVision. Together, with the Vicon line of HD megapixel robotic dome cameras, our enterprise-class video management software ViconNet, and IQinVision’s highly regarded IQeye brand, we bring a compelling solution offering to the video security market … The Vicon/IQinVision combination will yield meaningful operational benefits, together with significant market and technological synergies. It’s a logical first step to strategic growth for both companies.”
IQinVision chief executive officer Charles Chestnutt added, “This is a great fit for IQinVision as we combine with one of the iconic brands in the industry. Our product offerings are complementary to Vicon’s solutions, and we believe Vicon’s worldwide sales organization will effectively promote the IQeye brand to new markets and accelerate the growth of our sales footprint.”