Vancouver’s Avigilon Corporation (TSX:AVO) has snapped up the entire patent portfolio of a U.S.-based video software developer for US$80 million.
Avigilon, which produces high-definition surveillance cameras, announced Thursday (December 18) it’s acquiring ObjectVideo’s 126 patents and patent applications, as well at its licensing program.
The latest deal comes almost exactly a year to the date when Avigilon announced on December 31, 2013, it was acquiring video analytics company VideoIQ for US$32 million. The VideoIQ acquisition provided Avigilon with 23 patents and pending patents.
Founder and CEO Alexander Fernandes said the company believes the future of the industry is in video analytics, which is why it has been making the recent acquisitions.
The latest deal now brings Avigilon's tally of patents to 124 and its patent applications to 202, effectively doubling what it had previously.
“This combined with our earlier acquisition of VideoIQ results in what we believe is the strongest portfolio of video analytics intellectual property in the world,” Fernandes told investors on a conference call.
He added ObjectVideo’s revenue “is in the millions” but more financial details would be left for a future business acquisition report.
Fernandes emphasized more than once during the conference call the acquisition included a recurring royalty revenue stream from ObjectVideo.
Meanwhile, ObjectVideo will continue to generate patent applications until the end of January 2015 and has agreed to transfer those to Avigilon for no additional compensation.
