In a major development in the building automation and security solutions industry, Honeywell (Nasdaq: HON) has announced plans to acquire Carrier Global Corporation’s (NYSE: CARR) Global Access Solutions business for $4.95 billion. This all-cash transaction positions Honeywell as a leading provider of security solutions for the digital age.

The acquisition includes both hardware and software solutions, aligning with Honeywell’s strategic focus on three megatrends: automation, the future of aviation, and energy transition, all underpinned by strong digitalization capabilities. Global Access Solutions, an innovative global leader in advanced access and security solutions, will enhance Honeywell Building Technologies’ business model.

Global Access Solutions brings to Honeywell an attractive growth and margin profile, accretive to the company with valuable software content and resilient business model. The acquisition includes three respected brands: LenelS2, Onity, and Supra, each focusing on life safety and digital access solutions.

LenelS2, a business with over 25 years in commercial and enterprise access solutions, is known for its OnGuard and NetBox offerings, used by numerous Fortune 100 customers. Onity offers electronic locks for hospitality access, mobile credentials, and self-storage access, serving nine of the top ten hotel chains. Supra’s cloud-based electronic real estate lockboxes offer mobile credentials and access management, boasting a leading digital platform for property showings.

Vimal Kapur, Chief Executive Officer of Honeywell, expressed excitement about the acquisition, saying, “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 purchase price, representing approximately 13 times the expected 2023 EBITDA, includes tax benefits and run-rate cost synergies. The transaction is expected to be cash-EPS accretive in the first full year of ownership.

Subject to customary closing conditions and regulatory approvals, the transaction is anticipated to close by the end of Q3 2024. Financial advisory services were provided by Evercore Inc., with Skadden, Arps Slate, Meagher & Flom, Simmons & Simmons, and Womble Bond Dickinson offering legal counsel.

This acquisition marks a pivotal moment for Honeywell in the technology and security solutions sector, signifying a strategic enhancement of its capabilities and market presence in a rapidly evolving industry.

  Carrier Global Corporation, Honeywell, security solutions, Vimal Kapur