Milestone, the startup which has been referred to as the “most unknown of the big startups”, announced today they have been acquired by Canon. Milestone has grown into a leading provider of open platform video management software. With over 400 people and 13 offices, Milestone has been one of the largest startups emerging from this region. Rumours about an IPO or acquisition have been around for a while, and today the news where finally announced.
MILESTONE AS A STAND ALONE COMPANY
Canon has said they have an ambition to drive future growth through diversification, and have identified network video surveillance as a strategic new business area. Bringing Milestone into the Canon Group will significantly enhance Canon’s software capabilities in this sector. It is however also said that Milestone will continue to operate as a stand alone company, with no ties to Canons camera side.
“Canon respects how we built our business with our partners and supports our strategy of providing open platform solutions and therefore the need to remain a standalone company within the Canon Group. We feel this step is right for taking both our business and support for suppliers and partners to a new level.” says Lars Thinggaard, CEO at Milestone
VALUATION OF THE DEAL
Terms of the deal were not disclosed. IPVM has some info that Canon will gain one seat on the board of directors at Milestone, replacing Index Ventures, Milestones VC, who will be paid out as part of the acquisition.
Given Milestone’s 2013 revenue of over € 50 million, they expect the price to be in the range of € 110 million to € 180 million, based solely on comparable valuations in the industry. They note however that rumors are the number is much higher.
Milestone is a leader in video management software, with strong consultancy and training services. With the acquisition they will be able to use Canon’s business and consumer channels to expand its global market presence even further.
“Together with Milestone, we can accelerate our growth by delivering new advanced products and solutions for new sectors, through new channels. We are very excited about working with such a talented and innovative company and we welcome Milestone into the Canon Group.” says Rokus van Iperen from Canon
Milestone’s successful Open Platform business model is deemed essential to its future success and Milestone will continue to provide open platform solutions, while operating as a standalone company within the Canon Group, Canon says. Canon fully supports Milestone’s open platform strategy and respects their strong partnerships.
Following the completion of the acquisition, Milestone’s management will remain in place and they are committed to making this transition a success.