It is no secret that many venture-backed startups would give their first-born children to be acquired.
That’s because the alternative is bleak. VCs are handing out cash slower than they have in a decade, and many companies without suitors are forced to close their doors.
Unfortunately for many of these partner-hungry startups, the deal flow also is at a low. In the first quarter, only 68 venture-backed companies were sold, down 35 percent from 104 a year earlier.
"People do approach us monthly, if not weekly" interested in being acquired, says James Beldock
That makes ShotSpotter’s deal announced Tuesday all the more worth looking at. ShotSpotter announced the acquisition of Planning Systems, a unit of QinetiQ North America, for an undisclosed amount.
“People do approach us monthly, if not weekly,” says James Beldock, CEO of ShotSpotter, referring to the stream of startups eager to sell themselves.
But instead of a deal simply to increase the company’s size, Beldock settled on a merger with hands-down strategic value.
ShotSpotter sells technology that enables police departments in cities around the country to pinpoint the location of gunshots. It uses sensors, as many as 20 per square mile, to continuously monitor troubled areas.
Planning Systems makes a similar technology for military and defense markets. And it has key sensor patents.
“It clearly is a buyer’s market,” says Beldock. And that buyer is more discriminating than ever.
Beginning late yesterday and into today, it has been reported by several business journals and other online sources that ShotSpotter, Inc. had acquired a unit of QinetiQ North America. Those reports are factually inaccurate.
The facts are:
Shot Spotter did not “acquire part of QinetiQ” or a “unit of QinetiQ.” It acquired our SECURES product technology which was a parallel product to their ShotSpotter technology.
Shot Spotter did not buy Planning Systems Inc. Planning Systems Inc. invented the SECURES technology that was sold to ShotSpotter. Planning Systems Inc. is still a part of the Technology Solutions Group of QinetiQ North America, which has more than 6,400 employees in the US.
The agreement with ShotSpotter does not include our Ears/SWATS counter sniper detection system.
We are QinetiQ North America Operations LLC and our United Kingdom-based parent company is named QinetiQ Group plc. What was reported was a hybrid of the two companies (QinetiQ Group plc North America).
QinetiQ North America is not listed on the New York Stock Exchange as QNA. Rather, QinetiQ Group plc is listed on the London Stock Exchange as QQ.
For more information please contact:
Matt Warnock
Director, Public Relations
QinetiQ North America Operations LLC
O: 703-752-6528
M: 703-853-5511
Matthew.Warnock@QinetiQ-NA.com
Confirming Mark’s comment to this otherwise excellent story. We acquired the SECURES product line, but not PSI itself, which remains an operating unit of Qinetiq.
Let me start by thanking you for taking my train of thoughts into a completely different direction concerning the topic of startups through your opening sentence: “It is no secret that many venture-backed startups would give their first-born children to be acquired.”
I was researching the internet for ideas and links for my next post when I came across this article which provided me with a solid basis by which I built my argument upon!
My post’s title is: “Startups Craving to be Acquired… A Big Mistake?” As I see it, you are right, almost all startups build their vision of success around being acquired… In my post, I argue against this, wile providing solid reasons for this opposition.
Thanks for the insights.
Regards