Magnet Forensics of Waterloo Region has acquired a small U.S. company in a deal that enhances its ability to recover video evidence from CCTV and other surveillance-camera systems.
Magnet, which raised more than CDN$100 million with an IPO earlier this year, is paying US$6.75 million upfront for DME Forensics Inc. of Golden, CO., plus an additional US$2.25 million over two years if integration targets are met, according to a news release.
“Consolidating video evidence with other data types is an important component of Magnet Forensics’ vision,” said Adam Belsher, Chief Executive Officer of Magnet Forensics. “We are building a comprehensive digital investigation platform, powered by analytics, to help our customers identify and report on critical evidence in a timely and precise fashion. The video forensics capabilities of DME further strengthen and broaden our platform in this growth segment of digital investigations.”
Magnet, which was founded in 2010 by former police officer Jad Saliba, said it intends to retain DME’s 19 employees, including its management team. Magnet already employs more than 300 people, mostly in Waterloo Region.
Magnet Forensics creates data analytics software used for digital forensics investigations. The DME technology enhances its ability to access and retrieve video from surveillance systems.
Video from a variety of sources – such as closed-circuit TV, ATMs, dashcams, body-worn police cameras – is a rapidly growing component of the digital evidence that’s available to police and other investigators, according to a recent industry survey.
DME was founded in 2012 by a former forensic examiner with the FBI. According to the acquisition news release, its video-forensics technology is used by more than 900 public safety organizations in over 80 countries to investigate terrorism, civil unrest, child exploitation and a wide range of other crimes.
The acquisition will allow Magnet Forensics to integrate the DME capabilities into Magnet’s digital investigation solutions and to sell DME’s DVR Examiner solution through Magnet’s own sales and distribution channels.
“Public safety organizations often deal with various video formats in the course of their investigations and DME’s solutions enable them to consolidate and analyze their video evidence,” said Saliba. “Integrating DME’s solutions with our own will continue to drive efficiencies in investigations at a time when digital evidence volumes are increasing significantly.”
Shares in Magnet Forensics (TSX: MAGT) ended regular trading hours Monday at CDN$45.99, down 7.6 per cent amid a generally flat day on the markets. The stock remains well up from its debut price of $17 when Magnet went public on the Toronto Stock Exchange in late April.
The company has reported net income and increased revenue in its first two quarters as a publicly traded company.