Dvtel, based in Ridgefield Park, New Jersey, is a global leader in enterprise-class security and surveillance solutions. The company develops and distributes integrated video management system (VMS) software, advanced video analytics software, visible and thermal security cameras, and related servers and encoders. The combination enables Flir, with its existing Flir-branded thermal and visible cameras as well as its Lorex-branded security systems, to be a full-spectrum end-to-end security system provider, serving the consumer, small and medium business, enterprise, and infrastructure-level markets.

"Flir's strong position in thermal imaging together with Dvtel's extensive video analytics and VMS capability will position us well to offer differentiated and highly accurate perimeter security solutions for the upper corner of our security segment's product value ladder," said Andy Teich, President and CEO of Flir. "Dvtel adds a suite of professional-grade security software and hardware that is very complementary to our current solutions and fits very well with our strategy to offer end-to-end solutions in the enterprise and infrastructure segments of the security market."

According to Jon Cropley, Principal Anaylst, Video Surveillance and Security Services at IHS Technology. "This move follows Flir’s acquisition of another video surveillance equipment vendor, Lorex, back in 2012. This allowed Flir to enter the market for consumer and DIY video surveillance equipment and, at the same time, expand its presence in the market for professional video surveillance equipment. The acquisition of Dvtel means that Flir is expanding its presence in the professional market yet further, a market which IHS forecasts will be worth $15.7 billion in 2015."

Cropley also says that despite a number of mergers and acquistions in this market in recent years, the supply base remains fragmented. IHS estimates that the largest fifteen vendors accounted for just 52% of market revenues in 2014. Combined together, IHS estimates that FLIR/DVTel would have still been outside the largest fifteen.

Flir anticipates this transaction will be neutral to 2015 net earnings and accretive thereafter.