Vievu LLC, a maker of police body cameras, has been acquired by
Safariland LLC, which is bulking up its portfolio of security
products ahead of a planned initial public offering next year.
The deal is expected to be announced as soon as Monday.
Seattle-based Vievu is engaged in a fierce competition with
Taser International Inc. and other companies to sell cameras and
data- management services to law enforcement agencies. Industry
executives estimate the market has grown to around $1 billion a
year following a series of high-profile shooting incidents
involving police over the past nine months.
Police departments are buying thousands of body cameras and
grappling with the challenge of storing the huge amount of data
they produce, spurring manufacturers to expand cloud-based
evidence-management services.
Vievu has partnered with Microsoft Corp. to provide cloud
services, while Taser is teamed with Amazon.com Inc. and in May
expanded its evidence.com product by acquiring MediaSolv Solutions
Corp., which manages video from cameras from police stations and
vehicles.
Steve Ward, founder and president of closely held
Vievu—pronounced "vee-view"—said sales from cloud services could
eclipse the camera market. "It is going to open a huge revenue
stream in the future," he said in an interview. The company's
cameras sell for about $900 each, but are offered with a three-year
cloud management service at around $2,100.
Safariland, based in Ontario, Calif., has expanded through a
series of acquisitions to provide products ranging from fingerprint
kits to holsters, bullet-proof vests and riot gear. It plans to
boost camera production and use its distribution network to expand
Vievu beyond the 4,000 police departments it already supplies.
"We targeted the police-cam market several years ago and really
accelerated our discussions [with Vievu] over the last number of
months, particularly on the back of some of the incidents that have
occurred," said Safariland CEO Warren Kanders.
The federal government is providing $75 million in matching
funds to law- enforcement agencies to buy cameras and related
services, spurring a rally in manufacturers' stocks.
Taser shares have gained 151% over the past year, more than
doubling since the unrest following the fatal shooting of Michael
Brown by a police officer in Ferguson, Mo., last year, an event
that triggered a national debate over the use of body cameras.
Shares of Digital Ally, another camera maker, spiked to $33.59 last
fall. They have since come down as sales of its in-car cameras were
hit by the shift to body-worn units, but at Friday's closing price
of $14.26 the shares are still more than triple their 12-month
low.
"We have seen a 70% jump in just the requests to test Vievu body
cams," said Mr. Ward, a former Seattle police officer who worked
for Taser before founding his company in 2007. It now has 20
staff.
While domestic and international law- enforcement agencies are
the focus for camera sales, Vievu is also eyeing other professions
where their use could help mitigate legal risks, including lawyers,
doctors and realtors.
Closely held Safariland didn't disclose financial details of the
Vievu deal, though said it would lift group sales to $360 million
in the first year following the deal's closing.
Mr. Kanders, a defense-industry veteran, said Safariland was
looking at further acquisitions of companies with sales ranging
from $20 million to $150 million to expand its portfolio ahead of a
planned stock flotation next year. He is also chairman of Black
Diamond Inc. an outdoor sports specialist that has expanded through
a series of acquisitions.
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