M&A In 2021: Plenty Of Deals Despite Lingering Industry Challenges

Mergers and acquisitions are among the most disruptive forces in the security marketplace. However, they are also both a reality and a growing trend. Whenever there is value to be leveraged, companies tend to enter into business transactions to maximize that value. For the security industry, the result is a continually shifting collection of manufacturer companies seeking new ways to provide value to customers.

M&A activity continued unabated in 2021, despite residual industry challenges such as dysfunctional supply chains and lingering consequences of a global pandemic. Here are some of the larger and/or most impactful M&A transactions of 2021.

Stanley Black & Decker sells to Securitas

Stanley Black & Decker announces an agreement to sell most of its Security assets to Securitas AB for $3.2 billion in cash. The transaction includes Stanley Black & Decker's Commercial Electronic and Healthcare Security business lines.

 The businesses carry 2021 forecasted revenues of approximately $1.7 billion. “The business is well-positioned for ongoing growth within Securitas, a global pioneer in the security industry,” says James M. Loree, Stanley Black & Decker's CEO.

Openpath’s solution makes businesses more secure with multi-factor authentication

Motorola acquires Openpath and Envysion

Motorola Solutions adds to its security industry portfolio with the acquisition of Openpath Security Inc.., a cloud-based mobile access control provider. Openpath’s solution makes businesses more secure with multi-factor authentication, enables a contactless entry experience, and can be easily scaled and managed due to its cloud-based architecture.

Motorola also announces the acquisition of Envysion, a provider of video security and business analytics solutions for quick-service restaurant and retail industries.

Delta Electronics buys March Networks

Delta Group, a provider of power and thermal management solutions, purchased 100% of the shares in Infinova (Canada) Ltd., owner of Canadian-based video surveillance and business intelligence company March Networks, from Infinova International Ltd. through its subsidiary Delta International Holding Limited B.V.

Following the close of the transaction, it was expected that March Networks will continue to operate from its Canadian headquarters, and the March Networks executive management team will continue to lead the organization. Delta Electronics is also the parent company of VIVOTEK.

APi Group acquires Chubb Fire and Security Business

APi Group Corp. acquire the Chubb Fire & Security Business from Carrier Global Corporation for an enterprise value of US$ 3.1 billion.

Headquartered in the United Kingdom, Chubb has approximately 13,000 employees globally and a sales and service network that spans 17 countries, serving more than 1.5 million customer sites in Europe, Asia Pacific, and Canada. APi Group is a business services provider of safety, specialty, and industrial services in more than 200 locations worldwide.

Teledyne Technologies Inc. will acquire FLIR in a cash and stock transaction valued at approximately $8.0 billion

Teledyne acquires FLIR

Teledyne Technologies Inc. and FLIR Systems, Inc. jointly announced that they have entered into a definitive agreement under which Teledyne will acquire FLIR in a cash and stock transaction valued at approximately $8.0 billion.

Jim Cannon, President and Chief Executive Officer of FLIR, said, “We could not be more excited to join forces with Teledyne through this value-creating transaction.”

Resideo adds Norfolk Wire and Electronics

Resideo Technologies, Inc. acquired privately held Norfolk Wire & Electronics, based in Richmond, Virginia. Norfolk was founded in 1985 and is a regional distributor of security, telecom, network, and audio-video (AV) related products, supplies, and tools.

With 11 full-service retail locations and a 43,000 sq. ft. distribution center, Norfolk serves customers across the mid-Atlantic region and will be part of Resideo's ADI Global Distribution business, a wholesale distributor of security, AV, and low-voltage products.

Triton acquires ACRE, which acquires Feenics and Matrix

Triton Partners acquired ACRE, an end-to-end security solutions provider based in Dallas/USA and Dublin/Ireland. Triton is investing alongside the current management team of ACRE. Weeks later, ACRE acquired cloud-based workplace solutions company Time Data Security (TDS).

Later in the year, ACRE announced acquisition of Feenics and Matrix Systems. Feenics brings cloud-based access control solutions brings cloud-based access control solutions to ACRE’s rapidly growing network of global customers while also expanding its portfolio to support the growing demand for cloud-based security solutions. Matrix enables ACRE to expand the addressable market for the company’s technology portfolio.

Brivo, Inc. and Crown PropTech Acquisitions have entered into an agreement making Brivo a publicly listed company

Brivo becomes publicly traded through the merger

Brivo, Inc., a cloud-based access control and smart building technologies company, and Crown PropTech Acquisitions, a publicly traded special purpose acquisition company (SPAC), have entered into a definitive merger agreement that will result in Brivo becoming a publicly listed company.

The transaction values the company at a pro forma enterprise value of $808 million. Upon closing, the combined company will operate as Brivo, and its Class A common stock is expected to be listed under the ticker symbol “BRVS.”

Nice buys Nortek Security

Nice, a global manufacturer of smart home, security, home, and building automation solutions, , acquired Nortek Security & Control from Melrose Industries.

Nortek Security & Control is a developer of technology for security, home automation, control, power, AV and entertainment, access control, health, and Artificial Intelligence (AI) systems, for residential and commercial markets.

Eagle Eye acquires Uncanny Vision

Eagle Eye Networks, a cloud video surveillance solutions company, has acquired Uncanny Vision Solutions, an artificial intelligence (AI) analytics and Solutions Company.

The acquisition accelerates the company’s leadership in providing AI and analytics, to make customers’ businesses more efficient and the world a safer place. The acquisition also includes research and development (R&D) capabilities and a new regional office located in Bangalore, India.