SURREY, BC, Sept. 12 /CNW/ - Silent Witness (NASDAQ: SILW / TSE: SWE), a
leading provider of video monitoring technology, announced that it has
purchased the CCTV Products Division of Gyyr, Inc., including digital and
analog storage solutions and network-based remote video surveillance. The
purchase price totaled U.S. $8.9 million plus the assumption of U.S.$1 million
in debt. This transaction couples Gyyr's proprietary recording and networking
technologies with Silent Witness' distinct line of CCTV cameras.
"This is a strategic acquisition that strengthens our core business by
adding complimentary products and giving us access to additional vertical
markets," explained Rob Bakshi, Chairman, President & CEO of Silent Witness.
"The security industry is rapidly consolidating and moving to digital
technology. This transaction gives us competitive advantages in terms of
proprietary storage technology, a complimentary suite of products and
diversified sales channels."
The acquired CCTV Products Division is comprised of fully integrated
digital video management systems (DVMS), time-lapse VCRs, digital processing
and network video products for the collection, storage, processing and
transmission of security information. "This deal gives us access to new
markets and increases our offering to customers worldwide," explained Dean
Lumb, Director of Product Management at Silent Witness. "Gyyr's digital
platform is a true 'plug and play' VCR replacement and its multiplexing and
network technology is second to none."
The purchase moves Silent Witness from a product company to a security
solutions provider. "We are excited about bringing a product line that offers
complete video monitoring solutions to our customers," stated Dave Warkentin,
Director of Sales and Marketing. "We are enhancing our product line with
digital, network and recording technology, expanding our customer base to
include large financial, commercial and retail institutions, and opening new
sales channels through major CCTV systems integrators and installers in North
America, Latin America and Europe." Silent Witness will strengthen its ability
to support its existing CCTV distribution partners who have been instrumental
in the growth of the company with its new product offering.
Silent Witness gains research and development expertise, a strong
technical sales force and a concentrated customer base in North America, Latin
America and Europe, particularly in the UK. Gyyr has extensive experience in
research and development of digital recording technology, which enhances
Silent Witness' own expertise in camera development.
The transaction is expected to significantly increase the Company's
revenue. In the 12-month period ended March 31, 2001, Gyyr's sales of CCTV
products, including the PTZ camera product, were approximately U.S. $24
million. According to J.P. Freeman, Gyyr held approximately 12% of the North
American analog recording market among dealers. The purchase was financed by
cash on hand, the assumption of certain liabilities, and a CDN $12 million, 5-
year secured term loan provided by a Canadian chartered bank. The Company also
has an unutilized CDN $8 million committed line of credit.
"Proper integration of this acquisition is the key to success," explained
Tom Gill, Chief Operating Officer of Silent Witness. "Our integration team has
already spent a tremendous amount of effort in pre-planning to ensure a smooth
transition in terms of technology transfer and cost reductions while offering
even better service to our customers." Silent Witness plans to operate the
U.S. based location in Anaheim, CA as a Sales and Research & Development
facility and will work with the sales force in the UK to service current
customers throughout the UK and Europe.
Peter Strom, President of Gyyr commented, "We believe Silent Witness is a
great fit for Gyyr's customers because of their complimentary suite of
products. They have the necessary experience and expertise for our customers
as they are a company solely focused on the security business." To facilitate
the integration of the businesses, Silent Witness and Gyyr have entered into a
Transitional Services Agreement whereby Gyyr will continue to operate the CCTV
Products Division 'as is' over a transitional period, in order to provide
ongoing customer service and support. The services to be provided include
sales and marketing, manufacturing and inventory management, technical
service, and research and development. Silent Witness has agreed to pay Gyyr
U.S. $1.2 million for its services and use of its facilities over a three-
month period plus reimbursement of actual costs. During the transition period,
all product assembly, procurement, shipping and technical service will migrate
to the Silent Witness head office in Surrey, BC Canada.
Conference Call Information
You're invited to join Silent Witness for a LIVE and ARCHIVED Conference
Call on Thursday, September 20th, 2001 at 2:00 PM EDT to discuss the
acquisition and fourth quarter results. The webcast will be archived and
available from September 20th, 2001 at 4:00 PM EDT through to October 4th,
2001 at 8:00 PM EDT. In the U.S., the Conference Call can be accessed at 1-800-
311-9407. In Canada, please call 1-888-259-2914. For all Conference Calls
please quote the access code: SWE
For more information visit our website at:
silentwitness.com or click on:
streetfusion.com equals Z3MVsBOm1RGUEQCQJ%2B6jeg
About Silent Witness:
Silent Witness Enterprises Ltd. (NASDAQ: SILW / TSE: SWE) designs and
manufactures a full range of video monitoring technology for the global
marketplace. Founded in 1986 and headquartered in Surrey, BC, Silent Witness
is a leading provider of closed circuit television (CCTV) cameras worldwide.
Visit www.silentwitness.com.
About Gyyr:
Founded in 1971, Gyyr has since gained worldwide name recognition for
high quality, reliable and innovative security products. The company is
credited with developing the security industry's first time-lapse video
recorders and the most advanced Windows-based security management software.
Visit www.gyyr.com.
About Odetics:
Odetics Inc. is a California-based company engaged in the development of
communication and technology companies that may be spun-off to its
shareholders. Odetics companies develop software and hardware-based solutions
for the television broadcast, video security, telecommunications, and
intelligent transportation systems markets. Odetics headquarters are located
in Anaheim, California with additional operations in Europe and Asia.
Silent Witness(R) is a registered trademark of Silent Witness Enterprises
Ltd.
This news release may include statements about expected future events
and/or financial results that are forward-looking in nature and subject to
risks and uncertainties. The company cautions that actual performance will be
affected by a number of factors, many of which are beyond control. Future
events and results may vary substantially from what the company currently
foresees.
-0- 09/13/2001
/For further information: Mike Longinotti, Chief Financial Officer,
Phone: (604) 574-1526 ext. 8630, invest(at)silentwitness.com; Investor
Relations contact: Todd Atenhan, EPOCH Financial Group, Phone: (770) 425-7877,
tatenhan(at)bellsouth.net/ |
