Honeywell plans to enhance and strengthen its building automation capabilities with the acquisition of Carrier Global Corporation’s Global Access Solutions business for $4.95 billion, in an all-cash transaction.
The acquisition, which includes both hardware and software solutions, further supports Honeywell’s recently announced plans to align its portfolio to three compelling megatrends: automation, the future of aviation and energy transition, underpinned by robust digitalization capabilities and solutions.
The business brings an attractive growth and margin profile that will be accretive to Honeywell with valuable software content, resilient business model and strong sources of recurring revenue.
The acquisition will add three respected brands to Honeywell’s portfolio with a focus on life safety and digital access solutions, including:
• LenelS2, a leading business for over 25 years in commercial and enterprise access solutions, including well-known offerings Onguard and Netbox, used by numerous Fortune 100 customers.
• Onity offers electronic locks, including hospitality access, mobile credentials, and self-storage access.
• Supra’s cloud-based electronic real estate lockboxes offer mobile credentials and access management, as well as a leading digital platform to optimize scheduling for property showings.
When the deal closes, the combined company is expected to accelerate innovation, bringing products and capabilities to customers that are increasingly moving to cloud-based services and solutions. “Honeywell’s strong track record delivering building automation products and services makes this a natural fit that will create a leading security platform with forecasted annual revenue in excess of $1 billion,” states Vimal Kapur, Chief Executive Officer, Honeywell.
With approximately 1,200 employees operating in 33 countries, Carrier’s Global Access Solutions business is an innovative global leader in advanced access and security solutions, electronic locking systems, and contactless mobile key solutions. This pending sale will allow the business to build on the strength of its leading brands, innovative solutions, strong partner relationships and high growth potential, according to a press release from Carrier.
“Global Access Solutions is a great business with dedicated, customer-focused teams, and we look forward to watching its continued growth under the ownership of Honeywell,” says Carrier Chairman and CEO David Gitlin.
“The transaction, together with the planned exits of our Industrial Fire, Residential and Commercial Fire, and Commercial Refrigeration cabinet businesses, will accelerate our growth strategy and focus, positioning Carrier to deliver higher growth and superior shareholder value and further reinforcing our track record of performing while transforming.”
