Honeywell (NASDAQ: HON) completed its acquisition of Carrier Global Corp.’s Global Access Solutions business for $4.95 billion.
In an announcement, Honeywell said the transaction positions the industrial conglomerate 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.
The purchase, announced in December 2023, is also expected to support Honeywell’s plans to align its portfolio to automation, the future of aviation, and energy transition.
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.
Assimilating the Global Access Solutions division will bolster Honeywell’s building automation strategy by adding essential, high-value products crucial for building management, according to the announcement. The acquisition is also expected to enhance Honeywell’s growth and profit margins, enrich its software offerings and increase recurring revenue. When merged with Honeywell’s current security portfolio, the combined annual sales are projected to exceed $1 billion.
Kumar Sokka, global president and general manager of LenelS2, commented on the acquisition at the recent PSA TEC in Dallas, where he was a featured panelist for the State of the Industry session. He said the focus of integrating the business into Honeywell was to ensure a seamless transition for its integrator partners.
“When you buy a company of this size for $5 billion, you’re buying it for what it represents. And from an LenelS2 perspective, yes, we have technology, but beyond that what we represent is this ecosystem that we are together solving problems. That’s the powerhouse and that’s the value and differentiator that we really hold,” Sokka said.
The Global Access Solutions business has thousands of integrator partners around the world, including about 100 PSA members. How the business works and interacts with its integration partners is a core value that will not change under Honeywell, he said.
“When you think about the work that we just went through these last six months, a lot of work, it’s all about how do we make sure on day one that we're collectively not seeing any change. And then over time, as we talk about opportunities and how products will evolve, we’re really trying to figure out how could 1 + 1 = 3. That’s what’s going to come in time. But right now it’s ensuring that the biggest assets of us coming together is really the integrator community, and ensuring that continues. How can we improve that perspective of it is where we’re focusing a lot of our efforts.”
