Honeywell Bolsters Automation, Security in New Deal

Honeywell has announced plans to acquire Carrier Global Corporation’s Global Access Solutions business for US$4.95 billion in an all-cash transaction. Specifically, this acquisition will enable Honeywell to become a leading provider of security solutions for the digital age.

The acquisition, which includes both hardware and software solutions, further supports Honeywell’s recently announced decision to realign its business segments. Particularly, the streamlining of the portfolio complements three compelling megatrends: automation, the future of aviation, and energy transition.

Thus, the Global Access Solutions business will enhance Honeywell Building Technologies’ business model of leading high-value products that are critical for buildings.

Accelerates Innovation

The business brings an attractive growth and margin profile that will be accretive to Honeywell. Especially, with valuable software content, resilient business models, and strong sources of recurring revenue. Thus, the acquisition will add three respected brands to Honeywell’s portfolio. Most importantly, focusing on life safety and digital access solutions, including:

  • LenelS2, a leading business for over 25 years in commercial and enterprise access solutions. This includes well-known offerings OnGuard and NetBox, used by numerous Fortune 100 customers.
  • Onity, which offers electronic locks, including hospitality access, mobile credentials, and self-storage access. Nine of the ten top hotel chains are customers.
  • 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 will be able to accelerate innovation. Hence, bringing products and capabilities to customers who 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,” said Vimal Kapur, Chief Executive Officer, Honeywell. In addition, Kapur said, “By leveraging the capabilities of the combined company’s advanced security and safety systems, customers will be able to maximize their performance, efficiency, and cost-effectiveness and create long-term, sustainable value.”

The transaction will likely close by the end of the third quarter of 2024.