TagMaster acquires all outstanding shares in Citilog SAS. (“Citilog”) from Axis AB. Both Citilog and TagMaster are leading technology providers in the ITS sector, selling direct and through channel partners to end users such as authorities and road operators. Citilog’s video-based edge analytic will be a very important additional detection technology within TagMasters growing multi-modal ITS data solutions. Accurate detection and actionable data are the foundation for future ITS systems.
The acquisition provides the companies with an enhanced capacity for creating future products and data solutions in the US and Europe, as well as a platform for future business models as selling detection as a service (DaaS). There will be a very clear and direct cooperation with Citilog and Sensys Networks within sales and development, and high margin software will be much larger part of our future group revenue.
TagMaster and Citilog will continue to cooperate with Axis as partners.
Citilog was the first company to introduce video-based automatic incident detection in 1997. With more than 20 years of research and development in the field of analytics applied to traffic solutions Citilog has constantly demonstrated a strong commitment to the traffic industry, in line with its vision.
In 2019 Citilog introduced the first incident management analytics module based on Deep Learning technology. Citilog has today a broad portfolio of cutting-edge algorithms (products), based on deep learning, that can be used as both edge solutions and cloud-based solutions. Citilog is focusing on 4 application areas incident management, traffic efficiency, traffic statistic and remote parking enforcement.
Citilog is headquartered in Paris, with a subsidiary in US, and is led by industry veterans who bring years of experience in video-based traffic management solutions for smarter mobility. Citilog has more than 45 000 cameras and sensors deployed in over 60 countries all over the world.
Background and acquisition rationale
The past year confirms the validity of the TagMaster’s chosen strategy of focusing on growth within the Traffic Solutions application segment. Cities and other densely populated areas worldwide face challenges of rapid growth, rising populations, climate change, declining air quality and forced urban development, which places new demands on transportation systems. Meeting these challenges requires Intelligent Transportation Solutions that streamline traffic flows and contribute to the necessary shift to a more sustainable and safe transport system.
Citilogs products are deployed as part of several ITS applications including Incident Management, Traffic Signal Control- and Traffic Statistic. The Incident Detection market is estimated to be $500 million globally by 2024*, with growth (CAGR >15%) driven largely by the increasing global demand for Smart City solutions.
”TagMaster is very excited about this important step in our growth strategy, as Citilog makes us stronger in the ITS market. Citilog is also adding a wealth of AI and deep learning software capabilities and with the combined expertise of Citilog, Sensys Networks and TagMaster, we have excellent revenue growth opportunities in both US and European markets” says Jonas Svensson, CEO, TagMaster.
Commenting on the acquisition, Eric Toffin, Citilog, said “We are very pleased to be joining the TagMaster group. We recognise and welcome the strength that the union will bring to both brands and the synergies that are immediately apparent with the other TagMaster companies”
*According to a report by MarketsandMarkets, February 2020