05/30/2013 06:33 EDT | Updated 07/30/2013 05:12 EDT

Video surveillance company Avigilon buys RedCloud Security for $17 million

VANCOUVER - Video surveillance company Avigilon Corp. (TSX:AVO) said Thursday that it has bought RedCloud Security Inc., a privately held company that provides web-based, physical and virtual access control systems, for $17 million.

Avigilon said the deal adds a complementary product line to its high-definition surveillance system.

Terry Neely, RedCloud's president and chief technology officer, will join Avigilon and lead the access control development team.

Avigilon said it expects the deal to be neutral to its 2013 earnings and add to profits in 2014.

Shares in Avigilon closed up $1.11 or about 6.5 per cent at $18.20 on the Toronto Stock Exchange on Thursday.