Halifax Group acquired maker of surveillance systems North American Video, based in Brick, N.J., for an undisclosed amount, betting that the digital revolution will soon extend into the field of security.

Much of North American Video's customer base consists of casinos, many of which still employ video security systems that employ analog tapes, said Jud Hill, manaing director at Halifax. North American Video offers a digital system that allows customers to store and search for video, and provides analysis tools.

"Clearly, North American Video is doing that in spades — no pun intended — for the gaming sector," Hill said. "They go in and [set up] complete integration video surveillance, which is highly complex, in the new casinos being built."

Hill declined to release North American Video's revenue numbers, but he cited the company's strong performance as a draw to making the investment.

Strong customer satisfaction reports and the company's track record of delivering systems on-time and within budget were other factors behind the buy, Hill said. He added that he sees potential expansion into other fields outside its core customer base, particularly in areas ripe for digital upgrades such as homeland security, commercial buildings, college campuses and facilities within the financial services sector.

There is also the possiblity of overseas expansion. North American Video does most of its business in the U.S., but also dabbles in Macau, a region controlled by China, which has experienced a boom in a casino building over the past few years.

North American Video's fortunes are tied closely to that of the gaming industry, whose casinos depend heavily on surveillance products. Judging by stock price, the industry's major players are experiencing a recent uptick after sharply falling from six-month highs posted last fall.

Even with the current swell of recession talk, Hill said that both the gaming and security industries are typically resistent to economic downturns and anticipated that as technology improves and the price of digital security goes down, the lower prices will hedge against a potential downtown.

North American Video's Chief Executive Cynthia Freschi will continue heading the company as president. She will be working with the company's existing senior management team and will maintain a "significant stake" in the company. In a release, Freschi said the company's personnel and ongoing operations will be untouched by the sale.

Halifax Group completed its last major acquisition in November when it bought PJ United, the largest franchiser of Papa John's carry-out pizzerias, in a management-led buyout.

Halifax maintains an eclectic portfolio that includes other investments in PolyPipe, which makes polyethylene pipes, and Iasis Healthcare, an acute-care hospital chain.

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