Honeywell has completed the acquisition of Carrier Global Access Solutions for $4.95 billion.
According to the company, the deal positions Honeywell as a leading provider of security solutions for the digital age with opportunities for accelerated innovation in the fast-growing, cloud-based services and solutions space.
This transaction also strengthens Honeywell’s alignment of its portfolio around three compelling megatrends, including automation and complements Honeywell’s Building Automation segment.
The acquisition brings differentiated software capabilities through the addition of three brands to Honeywell’s portfolio: LenelS2, a leader in commercial and enterprise access solutions; Onity, which offers electronic locks, specifically hospitality access and mobile credentials; and Supra, which specializes in cloud-based electronic lockboxes and scheduling software.
Global Access Solutions’ approximately 1,200 employees are now part of Honeywell. The transaction is expected to be adjusted earnings per share accretive in the first full year of ownership.
Global Access Solutions enhances Honeywell’s Building Automation business model of leading with high-value products that are critical for buildings.
Honeywell says it will also benefit from the business’s growth and margin profile, valuable software content and accretive mix of recurring revenue, with forecasted annual sales in excess of $1 billion when combined with Honeywell’s existing security portfolio.
“As the world’s security needs evolve from a focus on protecting people to protecting both people and critical assets, we see strong growth prospects for our Access Solutions acquisition,” said Vimal Kapur, Chief Executive Officer of Honeywell.
“By building on our strong track record of delivering high-value building automation products, solutions, and services globally, this acquisition creates an exciting opportunity for us to achieve faster growth and further margin expansion, while generating better outcomes for our Building Automation customers.”