Redefining the market dynamics,
Tyco International Ltd.
) recently inked an agreement to acquire Exacq Technologies, an
open architecture video management systems (VMS) developer for
security and surveillance applications, for $150 million in cash.
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The acquisition is in line with Tyco's growth strategy and
strengthens its position in the video security market. Exacq is a
leading player in the VMS sector with a diverse product portfolio
that ranges from a single camera application to large integrated
systems incorporating thousands of camera applications. Most of
these complement the existing product range of Tyco Security
Products business unit. Post-acquisition, Tyco therefore intends
to integrate the acquiree with this business unit, resulting in
annualized revenues of $75 million in fiscal 2014.
We remain bullish on Tyco's fortunes based on the relative
stability of the global security markets as well as high and
predictable cash generation, limited balance sheet risk and easy
cost-out opportunities. The company's solid balance sheet and
liquidity position are also potential catalysts.
Tyco provides latest fire protection and security products and
services to more than three million customers across the globe.
Tyco has more than 70,000 employees in over 1,000 locations
across 50 countries, serving various end markets, including
commercial, institutional, governmental, retail, industrial and
energy, residential and small business.
Tyco currently has a Zacks Rank #3 (Hold). Other stocks that look
promising in the industry include
Hutchison Whampoa Ltd.
Compass Diversified Holdings
), each carrying a Zacks Rank #2 (Buy).