In this Research Note, we examine Vitaprotech, the French group offering physical security solutions for sensitive sites. This analysis covers their subsidiary companies, strategic direction, ownership, acquisitions and revenue growth.
Vitaprotech is the result of the 2014 merger of Sorhea, a specialist in perimeter intrusion detection for critical infrastructure and sensitive sites in France, and TIL Technologies, a French provider of access control software. The Group's goal is to become a European market leader in security for buildings and to strengthen its presence in physical access security for critical and sensitive sites.
Headquartered in Vaulx-en-Velin, France, the Group currently comprises thirteen companies, employing 430 people in France, Germany, the UK and the US. Vitaprotech addresses customer needs through an integrated offering built around three complementary areas of expertise:
- Perimeter Intrusion Detection systems offered by Sorhea and Protech.
- Access Control & Management offered by ARD, TDSi, Vauban Systems and TIL Technologies.
- Intelligent Monitoring and Video Surveillance offered by Foxstream, Prysm Software, ESI, Videowave, RECAS and GS4.
In June 2018, Eurazeo, the French private equity firm, became a majority shareholder of the Vitaprotech group, investing €40 million in the company to hold approximately 60% of the share capital. Supported by Eurazeo, the group has achieved strong organic growth driven by dynamic underlying markets, accelerated by a series of acquisitions. Vitaprotech has also pursued its transformation by strengthening the weight of software solutions and managed services (c. 45% of its activity), supported by significant investment in R&D.
In July 2022, Eurazeo entered into exclusive negotiations with Apax Partners for the sale of its majority stake in Vitaprotech. Eurazeo’s disposal would be set to produce a cash-on-cash multiple of 3.2x and an internal rate of return (IRR) of more than 30%.
Inorganic growth has been achieved through a buy-and-build strategy with 9 acquisitions closed over the last 5 years:
Foxstream, a video analytics software company based in Lyon, France with a team of about thirty people, was acquired by the Group in June 2022. Founded in 2004, the company specializes in real-time video content analysis and video management systems (COSSILYS21) in the banking industry. As a leading player in France in the protection of sensitive sites, the company relies on a network of about ten distributors and numerous integrators in France and abroad. Foxstream also has a Deep Learning Flow Management offering: counting of people, attendance rates, estimation of waiting time in a queue, etc. for public buildings. In the Smart Monitoring division, Foxstream strengthens Vitaprotech’s unified security offering and complements the expertise already in place at Prysm Software, ESI and RECAS.
Prysm Software, a French provider of a PSIM (Physical Security Information Management) platform, was acquired in January 2022. Established in 1996, the company has a network of more than 150 partners worldwide, trained in its AppVision hypervision platform. Vitaprotech accelerates its development in security software solutions and strengthens its monitoring business through this acquisition. GS4, a Paris-based secure communications specialist for sensitive sites, was also integrated into the group in 2022.
ESI (European Systems Integration) was acquired in Feb 2021, strengthening Vitaprotech’s remote monitoring and video protection offering. Founded in 1999, ESI – European Systems Integration – develops software solutions for the fields of remote monitoring, video protection, remote assistance, control stations and call centers for unified security. ESI reports a turnover of €10 million and has more than 70 employees, of which more than 50% are R&D engineers based in France.
RECAS, a French specialist in intelligent cloud video surveillance, was acquired in September 2020. This acquisition allowed the group to integrate SaaS mode into its Security offerings. Founded in 2014, RECAS designs a 100% web-based video protection solution, using the Cloud and to unify the information of one or more site(s).
In 2019, three access control providers were acquired:
- Vauban Systems, the deal was completed by the Group in July 2019, and enabled Vitaprotech to double its size in the field of access control and achieve a consolidated turnover of around 54 million euros. The French provider of hardware products and biometric readers, supervision software and services also has an approved training center for 3,000 referenced installers.
- ARD, another French player ARD, in access control and electronic banking, enables Vitaprotech Group, to reinforce its market position, especially in the education and health sectors.
- TDSi, a UK manufacturer of integrated access control systems, was acquired in June 2019. TDSi offers a range of readers, controllers and software systems through its customer network, primarily in the United Kingdom, France, Asia and the Middle East. The acquisition enabled Vitaprotech to expand its access control portfolio, strengthen the group's export presence and to access international distribution networks in the sector.
Growing from €29 million consolidated turnover in 2017, the Group is targeting revenues of around €81 million for 2022. Vitaprotech is considered to be on track to achieve €100 million in revenues by 2024.
This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.