Motorola Solutions to acquire Edinburgh’s Indigovision for £30m

Indigovision, the Edinburgh security video specialist, is to be acquired by communications giant Motorola Solutions in a £30 million-plus deal.

Bosses at the capital firm said that while they had been “particularly encouraged” by the recent turnaround in financial performance, there remains “execution risk” for Indigovision in pursuing an independent growth strategy.

They also noted that China remains a key part of the company’s supply chain, adding: “This exposure presents risks associated in the short-term with the Covid-19 pandemic currently affecting the region and, in the longer-term, with international trade and tariffs, particularly in the US, a key region for Indigovision as it expands, in light of the recently introduced National Defence Authorisation Act.”

Motorola Solutions said it had “no intention” to move Indigovision’s headquarters offices and HQ functions out of Edinburgh.

The group added: “Should there be any headcount reduction, these are not expected to be material in the context of Indigovision’s overall number of employees.

“Motorola Solutions continues to monitor the impact of the Covid-19 pandemic closely and is mindful that, should the wider economic environment in which Indigovision operates deteriorate materially, urgent mitigating actions may be necessary and that these actions may include the possibility of more material headcount reductions than is currently envisaged.”

The proposed acquisition values the entire issued and to be issued share capital of Indigovision at some £30.4m and represents a substantial premium for shareholders. The deal will be funded from the existing cash resources of Motorola Solutions. Pedro Simoes, chief executive of Indigovision, said: “The access we will now have to Motorola Solutions’ range of innovative technologies will create new opportunities for Indigovision and enable us to bring an exciting proposition to the market that allows us to further deliver on our goal of delivering safety, security and business intelligence.”

John Kedzierski, senior vice president, video security solutions at Motorola Solutions, added: “We share Indigovision’s commitment to providing next-generation, end-toend video security solutions that enhance safety, security and efficiency. Indigovision’s end-to-end offering, global presence and customer base will complement our existing and growing presence in video security and analytics.”

Shepherd & Wedderburn was legal adviser to Indigo.