Reston, Va.-based ObjectVideo has sold all of its patents and licenses for $80.3 million to the Avigilon Corporation. ObjectVideo, which develops video analysis technology, is selling off its intellectual property to Canada-based Avigilon as a way of paying back investors and planning for future developments and new products. The company made clear that it doesn't see the sell-off as the end of things for ObjectVideo, but rather a new step forward.
"From its founding, ObjectVideo has aimed to lead innovation in the world of video analytics, so it is very rewarding to see Avigilon, a global market leader in security, recognize our significant contributions to the field," said Raul Fernandez, the CEO of ObjectVideo in a statement. "This transaction marries a deep and highly valuable patent portfolio to the fastest growing solutions provider in the video security industry. The union creates a unique and incredibly well positioned company."
In total, the company is selling off 76 patents and 50 patent applications, licensed out to 19 companies. Avigilon will now fulfill those contracts as part of it s larger video and general security services. The company has some investment from New York as well as locally. They will see some good returns from the deal, and presumably hope for more to come when ObjectVideo creates its next round of products. Locally, its investors include Ted Lonsis and Novak Biddle Venture Partners.
"The future of the video surveillance industry is in video analytics," said Avigilon CEO and founder Alexander Fernandes in a statement. "The Acquisition not only bolsters Avigilon's portfolio of intellectual property, but it also brings with it a recurring royalty revenue stream. The Acquisition opens new doors for Avigilon, provides us with additional freedom to operate, and greatly strengthens our intellectual property portfolio. "It positions Avigilon to continue leading the way into the future of the video surveillance industry."
