The sale of Carrier’s Global Access Solutions to Honeywell in December amounted to a dramatic finish to a big year in 2023 for mergers and acquisitions (M&A) in the physical security market.
In the transaction between two industry giants, Honeywell sought to enhance and strengthen its building automation capabilities with the acquisition of Carrier’s Global Access Solutions business for $4.95 billion, in an all-cash transaction.
Honeywell acquires Carrier Access business
The acquisition, which includes both hardware and software solutions, will mean a new corporate owner for the LenelS2 brand, a pioneering business for over 25 years in commercial and enterprise access solutions, including well-known offerings Onguard and Netbox.
In addition, the acquisition covers the Onity brand of electronic locks, including hospitality access, mobile credentials, and self-storage access; and the Supra brand of cloud-based electronic real estate lockboxes.
ADT sells commercial business, which rebrands as Everon
ADT Inc. announced the sale of its commercial security, fire, and life safety business unit to GTCR
ADT Inc., another industry giant and a trusted brand in smart home and small business security, announced the sale of its commercial security, fire, and life safety business unit to GTCR, a private equity firm, for a purchase price of $1.6 billion.
ADT Commercial, a security integrator and premier provider of commercial security, fire, and life safety in the United States, announced that it will move forward as a standalone organization and rebrand as Everon.
Bosch to sell building technologies products
Bosch Building Technologies announced in 2023 that it is realigning its Building Technologies division to focus solely on its regional integrator business, with solutions and services for building security, energy efficiency, and building automation. Therefore, Bosch plans to sell most of the Building Technologies division’s product business.
At year-end, Bosch was seeking a buyer who would take on all three business units with their associates and locations. This includes the Video, Access and Intrusion, and Communication business units, and affects some 4,300 associates at more than 90 locations worldwide. Building its integrator business earlier in 2023, Bosch announced the acquisition of Paladin Technologies, Inc., headquartered in Vancouver, Canada, a provider of security and life safety solutions and system integration services in North America.
Motorola acquires IPVideo, creator of HALO Sensor
In another deal emerging late in 2023, Motorola Solutions acquired IPVideo Corp., Bay Shore, N.Y., the creator of the HALO Smart Sensor, an all-in-one intelligent sensor that detects real-time health and safety threats.
The powerful capabilities of the HALO sensor extend Motorola’s end-to-end physical security offering by integrating a non-video threat detection product into the safety and security ecosystem.
IDIS acquires Costar Technologies
Costar has a sales channel of over 100 distributors and 1,000 systems integrators across the U.S.
Korean video manufacturer IDIS and U.S. company Costar Video Systems had enjoyed a long-term existing ODM (original design manufacturer) relationship, and approximately 60% of Costar Video products were already made by IDIS. Therefore, it made sense when IDIS Co., Ltd. and Costar Technologies Inc. announced an agreement and plan to merge, with IDIS acquiring Costar.
Leveraging Costar's established distribution networks and sales channels in the U.S. gives a significant boost to IDIS' growth strategy, which is founded on building long-term relationships with systems integrators. Costar has a sales channel of over 100 distributors and 1,000 systems integrators across the U.S. that will benefit from IDIS’ NDAA-compliant and 100% Korean-made technology.
SECOM invests in Brivo and Eagle Eye
Eagle Eye Networks, a cloud video surveillance company, and Brivo, a provider of cloud-based access control and smart space technologies, announced one of the largest investments to date in cloud physical security in 2023.
SECOM CO., LTD, based in Japan and one of the largest security integration companies in the world, has made a primary equity investment of $192 million in the two companies, $100 million in Eagle Eye Networks, and $92 million in Brivo.
- $100M primary equity investment
Brivo will also use the additional investment to continue expanding in Europe, Latin America, and Asia Pacific
Eagle Eye Networks, a global pioneer in cloud video surveillance, announced it will use the $100M primary equity investment to expand its suite of AI-powered products, fund geographic expansion, and enhance its enterprise features.
Brivo will use the investment to grow sales and marketing, accelerate product development scale support and operational functions, and evaluate strategic acquisitions. Brivo will also use the additional investment to continue expanding in Europe, Latin America, and Asia Pacific, and enhance the smart spaces and AI functionality in the Brivo Access Platform.
ACRE buys PremiSys Portfolio
ACRE, a security company built on acquisitions, is continuing to broaden its portfolio and serve the expanding needs of its customer base. In 2023, ACRE acquired the PremiSys software and hardware portfolio and assets from IDenticard.
PremiSys’ technologies enable organizations to self-manage door access and view integrated video and lockdown facilities. The acquisition extends opportunities for ACRE in healthcare, education, data centers, and senior living facilities.
Qognify is a part of Hexagon
Qognify extends Hexagon’s real-time monitoring and security reach to detect, assess, and respond
Qognify, a provider of video (VMS) and enterprise incident management (EIM) solutions announced that it has become a part of Hexagon. Qognify joins the Safety, Infrastructure & Geospatial division of Hexagon, following the completion of its acquisition originally announced on Dec. 19, 2022.
Qognify extends Hexagon’s real-time monitoring and security reach to detect, assess, and respond to incidents, providing a more robust offering.
ASSA ABLOY continues its acquisition trend
ASSA ABLOY continued to acquire companies in 2023 to strengthen its position in mature markets by adding complementary products and solutions to the core business.
Among the companies acquired in 2023 were Ghost Controls, a U.S. supplier of automated residential gate openers, and Securitech Group, a manufacturer of high-security mechanical and electronic door hardware products in the U.S.
- Door and fencing
ASSA ABLOY also acquired Leone Fence, a Canadian manufacturer, distributor, and installer of fencing products for commercial and residential applications, and Lawrence Hardware and Gallery Specialty, providers of commercial hinges, locksets, exit devices, and door hardware accessories in Canada. Another new acquisition is Inovadoor Portas Industriais Ltda, a Brazilian manufacturer of sectional and high-speed doors.
Earlier in 2023, ASSA ABLOY completed the acquisition of Spectrum Brands’ Hardware and Home Improvement division and the divestment of Emtek and the Smart Residential business in the U.S. and Canada to Fortune Brands.
