Nice, a global manufacturer of smart home, security, home and building automation solutions, has announced that it has acquired Nortek Security & Control, LLC from Melrose Industries.
Nortek Security & Control, LLC is a globally renowned 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.
Strategic acquisition
With this acquisition and addition of strategic award-winning brands, including 2GIG, ELAN, Linear, MightyMule, Proficient, SpeakerCraft, Gefen, Xantech, Panamax, Furman, Numera, and IntelliVision, Nice expands its portfolio to provide a full suite of integrated solutions, for residential, commercial, industrial and government customers. The solutions portfolio includes consumer DIY to custom and professionally installed specialised products and high-security applications.
The move substantially strengthens the presence of Nice in the North American market and doubles its R&D capacity
The move substantially strengthens the presence of Nice in the North American market and doubles its R&D capacity, to further accelerate innovation and expansion of platform-based integrated solutions, considerably enlarging Nice’s customer base globally, in a fast-growing market.
Nice and Nortek partnership
The partners of Nice and Nortek Security & Control will experience an enhancement of their current relationships through a larger organisation, with an even stronger commitment to the channel. Nice is a global company with a regional presence, to focus on its local markets and partners.
“This acquisition reinforces our strong commitment to North America and significantly expands our global footprint. Nice now employs over 3,000 people across five continents, encompassing the most diverse backgrounds and cultures with 16 R&D centres, and manufacturing facilities servicing partners and customers in over 100 countries,” said Lauro Buoro, the Chairman and Founder of Nice.
Developer of industry-renowned platforms
“We are very excited to join Nice. Nortek Control has built a reputation for delivering innovative and industry-renowned platforms to the market. With the addition of the Nice product lines our consolidated organisation will now offer one of the broadest and deepest portfolio of disruptive products to the market,” said Christopher Larocca, President and CEO of Nortek Security & Control.
Founded in the 1960s as Linear Corporation, Nortek Security & Control has a vast portfolio of products, over 200 patents, and 12 leading brands across security, access control, AV, power management, smart home, AI and personal health.
2GIG EDGE security and automation panel
In March 2021, Nortek Security & Control released the 2GIG EDGE security and automation panel with AI and edge analytics, winning several industry awards. The new panel for the pro-install security market delivers the industry’s first secure face recognition touchless disarm capability. Developed with edge processing, the panel’s engineering ensures the homeowner’s biometric data stays secure by saving it only on the panel.
In North America, the portfolio of brands under Nice includes Abode, Nice, and HySecurity, in addition to well-established gate, door, sunshade, and smart security offerings. The acquisition instantly increases reach and scales growth, through existing Nice distribution channels and with those of Nortek Security & Control.
Access to a broad portfolio of integrated solutions
Partners of each organisation will experience streamlined communication from one brand to the next
Partners of each organisation will experience streamlined communication from one brand to the next and, in time, will have access to a broader portfolio of integrated solutions.
The business will be conducted as usual throughout 2022. The North American organisation will immediately begin collaborating with the Nortek Security & Control team, on blending portfolios and operations, to emerge fully integrated in 2023.
Transaction details
The transaction, valued at US$ 285 million, is the largest investment to date by Nice. For this transaction, Nice was advised by Rothschild & Co. as a financial advisor, PwC as financial, tax and labour due to diligence advisor, Raines Feldman LLP as legal advisor, and Bain & Co. as a business advisor.
UniCredit S.p.A. Sole Global Coordinator, BNP Paribas Italian branch, Crédit Agricole Corporate and Investment Bank (Milan branch), Crédit Agricole FriulAdria S.p.A. and Natixis S.A. Milan branch have fully underwritten the financing package, acting together with Banco BPM, as Bookrunner, MLA and the Original Lender. Cassa Depositi e Prestiti acted as MLA and Original Lender for the financing. Legance Avvocati Associati acted as legal advisor for Nice and Gianni & Origoni for the lenders.