Magal S3 Acquires Aimetis for $14 million

3 April, 2016

Aimetis from Ontario, Canada, offers smart video management system with integrated analytics and centralized management in the cloud

Aimetis from Ontario, Canada, offers smart video management system with integrated analytics and centralized management in the cloud

Magal's Fortis 4G command and control room in Africa Cup. Gabon
Magal’s Fortis 4G command and control room in Africa Cup. Gabon

Magal Security Systems, Ltd. based in Yehud, Israel, announced that Senstar, its fully owned subsidiary based in Canada, acquired Aimetis for approximately $14 million. Aimetis is a Canadian-based company, headquartered in Waterloo, Ontario, provides IP video management software (VMS), and was recently recognized by Deloitte as one of the fastest growing technology companies in North America.

Marc Holtenhoff, CEO of Aimetis
Marc Holtenhoff, CEO of Aimetis

Saar Koursh, CEO of Magal S3, said the acquisition expands the product portfolio by about 20%, “and diversifies our offering into new markets such as education, health care and retail. Aimetis is a fast growing company, and we expect the acquisition to be increasingly accretive to Magal from 2017”

“Symphony 7 just around the corner”

Brian Rich, President of Senstar, commented, “Together, we now have a unique offering of intelligent video combined with the strongest cyber security solution in the market for video and general physical security networks.” Marc Holtenhoff, CEO of Aimetis: “The acquisition comes at an ideal time with the launch of our new Symphony version 7 just around the corner. We look forward to growing as part of Senstar and Magal.”

Aimetis offers smart video management system with integrated analytics and centralized management in the cloud. Founded in 2003, Aimetis has distributors and certified partners in over 100 countries and serves a variety of industries, including retail, transportation, and others.

Lower sales, better profits

Magal S3 is a provider of solutions and products for physical and cyber security, as well as safety and site management. Over the past 42 years, Magal S3 has delivered tailor-made security solutions and turnkey projects to hundreds of satisfied customers in over 80 countries. Its revenues for the year ended December 31, 2015 were $63.7 million, a 17.8% decrease compared with $77.5 million in 2014.

However, gross profit was $31.0 million, representing 48.7% of revenues, compared with $34.5 million, representing 44.5% of revenues in 2014. Koursh Magal saw “very strong level of gross and operating profitability, and sequential and steady growth in sales over the past year. In 2015, we retired some older products while launching new products particularly in the fiber space, which contributed to our overall improvement in gross profitability.

“This effort will continue into 2016. Additionally, throughout the year our projects were of a smaller scale and more diverse, providing us with a more stable and varied income. It is our long-term intention to focus our efforts and strengthen the product and service legs of our business.”

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Posted in: Deals and Investments , News , Security

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