FLIR Systems has completed the sale of its Lorex subsidiary to Dahua for approximately $29 million in cash. In an announcement, FLIR said the Canadian subsidiary generated $140 million in revenue last year. The company 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, turnkey 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 states.
According to Dahua, FLIR-branded SMB products will continue to be marketed for sale and available for support. The SMB North American-based sales and marketing team will remain intact and will be expanding in the near future to provide further enhanced support. Also, new product development will continue under Dahua’s China-based engineering resources.
The transaction marks the end of FLIR’s efforts to build a presence in the DIY and small business markets. FLIR acquired Ontario, Canada-based Lorex in 2012 in a cash deal worth about $60 million. Lorex also sold a professional line of visible spectrum video surveillance products under the Toronto-based Digimerge brand.