Video surveillance firms make a deal

MDI Inc., a security software and hardware provider, plans to buy Advanced Security Link Inc., a maker of video communication technology.

The deal will help MDI expand its offerings to network-based integrated security and surveillance solutions, the San Antonio-based company said.

MDI is buying ASL for about 2 million shares of MDI common stock, which closed at 74 cents on Monday. The acquisition is expected to close Jan. 2.

Costa Mesa, Calif.-based ASL was founded by Mitchell Phan. The company was one of the first to develop remote video transmission products that worked over standard telephones lines. More than 20,000 sites worldwide have installed ASL products.

Government customers include the U.S. Postal Service, U.S. Customs and Border Protection and numerous law enforcement agencies. MDI's customers include the Secret Service, Bureau of Engraving and Printing, Defense Department, IRS and NASA.

"ASL technology adds immediate and significant value to our government, commercial enterprise, small business and mobile video sales channels through its innovative video delivery technology," said J. Collier Sparks, president and CEO of MDI.

MDI had $6 million in revenue for the first three quarters of 2005. ASL's revenue was not available.