Maker of Police Body Cameras Is Acquired

Vievu LLC, a maker of police body cameras, has been acquired by Safariland LLC, which is bulking up its portfolio of security products ahead of a planned initial public offering next year.

The deal is expected to be announced as soon as Monday.

Seattle-based Vievu is engaged in a fierce competition with Taser International Inc. and other companies to sell cameras and data- management services to law enforcement agencies. Industry executives estimate the market has grown to around $1 billion a year following a series of high-profile shooting incidents involving police over the past nine months.

Police departments are buying thousands of body cameras and grappling with the challenge of storing the huge amount of data they produce, spurring manufacturers to expand cloud-based evidence-management services.

Vievu has partnered with Microsoft Corp. to provide cloud services, while Taser is teamed with Amazon.com Inc. and in May expanded its evidence.com product by acquiring MediaSolv Solutions Corp., which manages video from cameras from police stations and vehicles.

Steve Ward, founder and president of closely held Vievu—pronounced "vee-view"—said sales from cloud services could eclipse the camera market. "It is going to open a huge revenue stream in the future," he said in an interview. The company's cameras sell for about $900 each, but are offered with a three-year cloud management service at around $2,100.

Safariland, based in Ontario, Calif., has expanded through a series of acquisitions to provide products ranging from fingerprint kits to holsters, bullet-proof vests and riot gear. It plans to boost camera production and use its distribution network to expand Vievu beyond the 4,000 police departments it already supplies.

"We targeted the police-cam market several years ago and really accelerated our discussions [with Vievu] over the last number of months, particularly on the back of some of the incidents that have occurred," said Safariland CEO Warren Kanders.

The federal government is providing $75 million in matching funds to law- enforcement agencies to buy cameras and related services, spurring a rally in manufacturers' stocks.

Taser shares have gained 151% over the past year, more than doubling since the unrest following the fatal shooting of Michael Brown by a police officer in Ferguson, Mo., last year, an event that triggered a national debate over the use of body cameras. Shares of Digital Ally, another camera maker, spiked to $33.59 last fall. They have since come down as sales of its in-car cameras were hit by the shift to body-worn units, but at Friday's closing price of $14.26 the shares are still more than triple their 12-month low.

"We have seen a 70% jump in just the requests to test Vievu body cams," said Mr. Ward, a former Seattle police officer who worked for Taser before founding his company in 2007. It now has 20 staff.

While domestic and international law- enforcement agencies are the focus for camera sales, Vievu is also eyeing other professions where their use could help mitigate legal risks, including lawyers, doctors and realtors.

Closely held Safariland didn't disclose financial details of the Vievu deal, though said it would lift group sales to $360 million in the first year following the deal's closing.

Mr. Kanders, a defense-industry veteran, said Safariland was looking at further acquisitions of companies with sales ranging from $20 million to $150 million to expand its portfolio ahead of a planned stock flotation next year. He is also chairman of Black Diamond Inc. an outdoor sports specialist that has expanded through a series of acquisitions.

Access Investor Kit for Amazon.com, Inc.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US0231351067

Access Investor Kit for Digital Ally, Inc.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US25382P2083

Access Investor Kit for TASER International, Inc.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US87651B1044

Subscribe to WSJ: http://online.wsj.com?mod=djnwires