Onity - Experts & Thought Leaders

Onity, a global pioneer in electronic access solutions and mobile credentialing and a Honeywell brand, announces the expansion of its partnership with Extra Space Storage, Inc., the largest self-storage company in the United States. Onity and Extra Space Storage are advancing storage unit access across the country with next-generation mobile access technology, allowing customers to enter storage units quickly and safely without a traditional lock and key.  Onity's Passport locking solution Successfully ended field trials and growth site installations at Extra Space Storage areas across the US The two companies have been working together to integrate Onity’s pioneering DirectKey technology into Extra Space Storage’s customer mobile app and to trial Onity’s newly released Passport locking solution. Now, they’ve successfully completed field trials and expansion site installations at Extra Space Storage locations across the U.S. "By integrating Onity's smart locks into our storage units and Onity's DirectKey mobile access technology into our customer mobile app, we're enhancing the tenant and facility operator experience, while increasing security, convenience and operational efficiency," said James Hafen, Vice President of Product, Extra Space Storage, adding "We look forward to bringing Onity's Passport locking solution to additional locations in the future." New industry standards for security In its testing, Onity’s Passport solution facilitated nearly 5000 door openings with the locks demonstrating a reliability rate of 99.8%, and overall system availability of 99.9%. Additionally, the projected battery life for the installed locks is over 5 years, an increase from the original projection of 3 years. "These field trials have been critical to ensuring the safety and reliability of our mobile access solutions for Extra Space Storage users," said Fayyad Sbaihat, President, Onity, adding "Together, we’re setting new industry standards for security and convenience in self-storage solutions, ensuring the protection of people’s most valuable, essential items." This collaboration underscores Honeywell’s alignment of its portfolio to three compelling megatrends, including automation.

Honeywell plans to enhance and strengthen its building automation capabilities with the acquisition of Carrier Global Corporation’s Global Access Solutions business for $4.95 billion, in an all-cash transaction. The acquisition, which includes both hardware and software solutions, further supports Honeywell’s recently announced plans to align its portfolio to three compelling megatrends: automation, the future of aviation, and energy transition, underpinned by robust digitalisation capabilities and solutions. Strong brands The business brings an attractive growth and margin profile that will be accretive to Honeywell with valuable software content, a resilient business model, and strong sources of recurring revenue. The acquisition will add three respected brands to Honeywell’s portfolio with a focus on life safety and digital access solutions, including: LenelS2, a pioneering business for over 25 years in commercial and enterprise access solutions, including well-known offerings Onguard and Netbox, used by numerous Fortune 100 customers. Onity offers electronic locks, including hospitality access, mobile credentials, and self-storage access. Supra’s cloud-based electronic real estate lockboxes offer mobile credentials and access management, as well as a pioneering digital platform to optimise scheduling for property showings. Cloud-based services Honeywell’s strong track record delivering building automation products and services makes this a natural fit" When the deal closes, the combined company is expected to accelerate innovation, 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 pioneering security platform with forecasted annual revenue over $1 billion,” states Vimal Kapur, Chief Executive Officer, Honeywell. The purchase price represents approximately 13x 2023E EBITDA, inclusive of tax benefits and run-rate cost synergies. The transaction is expected to be cash-EPS accretive in the first full year of ownership. 1,200 employees in 33 countries With approximately 1,200 employees operating in 33 countries, Carrier's Global Access Solutions business is an innovative global pioneer in advanced access and security solutions, electronic locking systems, and contactless mobile key solutions. This pending sale will allow the business to build on the strength of its pioneering brands, innovative solutions, strong partner relationships, and high growth potential, according to a press release from Carrier. Aligning with growth strategy Global Access Solutions is a great business with dedicated, customer-focused teams" "Global Access Solutions is a great business with dedicated, customer-focused teams, and we look forward to watching its continued growth under the ownership of Honeywell," says Carrier Chairman and CEO, David Gitlin. He adds, "The transaction, together with the planned exits of our Industrial Fire, Residential and Commercial Fire, and Commercial Refrigeration cabinet businesses, will accelerate our growth strategy and focus, positioning Carrier to deliver higher growth and superior shareholder value and further reinforcing our track record of performing while transforming." Will pay down debt Carrier expects net proceeds from the transaction to be approximately $4 billion and intends to use the proceeds to pay down debt. The company anticipates resuming share repurchases as soon as its net leverage returns to approximately 2x EBITDA. The proposed sale is subject to regulatory approvals and customary closing conditions. It is expected to close before the end of Q3 2024.

Honeywell announces plans to enhance and strengthen its building automation capabilities with the acquisition of Carrier Global Corporation’s Global Access Solutions business for $4.95 billion, in an all-cash transaction. This acquisition will enable Honeywell to become a provider of security solutions for the digital age. The acquisition, which includes both hardware and software solutions, further supports Honeywell’s recently announced plans to align its portfolio to three compelling megatrends: automation, the future of aviation and energy transition, underpinned by robust digitalisation capabilities and solutions. The Global Access Solutions business will enhance Honeywell Building Technologies’ business model of leading with high-value products that are critical for buildings. Digital access solutions The business brings an attractive growth and margin profile that will be accretive to Honeywell with valuable software content, resilient business model and strong sources of recurring revenue. The acquisition will add three respected brands to Honeywell’s portfolio with a focus on life safety and digital access solutions, including: LenelS2, a business for over 25 years in commercial and enterprise access solutions, including 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 digital platform to optimise scheduling for property showings. Cloud-based services Customers will be able to maximise their performance, efficiency and cost-effectiveness" When the deal closes, the combined company will be able to accelerate innovation, bringing products and capabilities to customers that 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. He adds, “By leveraging the capabilities of the combined company’s advanced security and safety systems, customers will be able to maximise their performance, efficiency and cost-effectiveness and create long-term, sustainable value.” Providing external legal counsel The purchase price represents approximately 13x 2023E EBITDA, inclusive of tax benefits and run-rate cost synergies. The transaction is expected to be cash-EPS accretive in the first full year of ownership. The transaction is expected to close by the end of the third quarter of 2024, subject to customary closing conditions, including receipt of certain regulatory approvals. Evercore Inc. is serving as financial advisor to Honeywell. Skadden, Arps Slate, Meagher & Flom, Simmons & Simmons and Womble Bond Dickinson are providing external legal counsel.

Big news on the mergers and acquisitions (M&A) front is closing out 2024, a year in which several shifts changed the face of the physical security manufacturer community. Announced in December, German giant Bosch Group is selling its Building Technologies division’s product business for security and communications technology to the European investment firm Triton.  Bosch division selling to Triton  The transaction encompasses three business units – Video, Access and Intrusion, and Communication – and thus the entire product business of Bosch Building Technologies that was offered for sale. All 4,300 associates employed in these units at more than 90 locations worldwide will be taken over. The transaction reflects a growing confidence in the security market among private equity companies such as Triton, Becklar, and Volaris.   Sharing best practices Acre Security and Bosch will remain independent, standalone companies under Triton’s ownership Acre Security, previously acquired by Triton, has benefited from Triton’s strategic guidance and expertise, according to the company, which is confident Bosch will experience the same level of support and opportunity to thrive. Acre Security and Bosch will remain independent, standalone companies under Triton’s ownership, but will benefit from the potential to collaborate and share best practices as part of the broader Triton portfolio.  Resideo acquires Snap One  Earlier in 2024, there were other large M&A transactions. In the spring, Resideo Technologies, Inc., a manufacturer and distributor of technology-driven products and solutions, agreed to acquire Snap One Holdings Corp., a provider of smart-living products, services, and software to professional integrators. The transaction is valued at $1.4 billion, inclusive of net debt. Upon closing, Snap One becomes part of Resideo's ADI Global Distribution business.  Honeywell buys Carrier’s Access Solutions  In late 2023, Honeywell announced plans to enhance and strengthen its building automation capabilities with the acquisition of Carrier Global Corporation’s Global Access Solutions business for $4.95 billion, in an all-cash transaction.  The acquisition, which played out through 2024, includes both hardware and software solutions, adding three respected brands to Honeywell’s portfolio with a focus on life safety and digital access solutions. Acquired brands include LenelS2, commercial and enterprise access solutions; Onity electronic locks; and Supra cloud-based electronic real estate lock boxes. Hirsch reemerges as an iconic brand  The Identiv sale was originally announced in April, subject to regulatory approval Identiv announced plans to sell its physical security business and assets to Vitaprotech, the security solutions provider that also acquired British manufacturer, TDSI, in 2019. The Identiv sale was originally announced in April, subject to regulatory approval.  As a result of the sale, Hirsch, a global security technology pioneer advancing physical security, video intelligence, cybersecurity, and digital identification solutions, announces the relaunch of its iconic brand and strengthened focus on the industry’s most complete high-security, end-to-end platform.  Ease of use security solutions The move seeks to reposition Hirsch as the global pioneer in physical security, video intelligence, and identity solutions, protecting everything from small enterprises to critical national infrastructure. With a 43-year-strong foundation in the industry, Hirsch’s mission has always been empowering a secure, connected world, combining government-grade high security with ease of use. Milestone and Arcules unite  Effective July 1, 2024, global video technology company Milestone Systems announced its merger with the cloud-based video surveillance solutions provider, Arcules. Both companies are owned by Japanese multinational Canon Inc. Based in Irvine, Calif., Arcules was spun off from Milestone in 2017. The merger brings together Milestone and Arcules’ best-in-class capabilities within video management software (VMS), video analytics, and video surveillance as a service (VSaaS), providing a complete video technology offering.  More M&A stories in 2024  In other M&A moves in 2024, cloud-based workforce management software provider Synerion USA Inc. acquired cloud-based video surveillance and access control solutions platform Qumulex Inc. Also, the global pioneer in airspace awareness and security, Dedrone, became part of the public safety and technology company Axon. The acquisition unites two companies with a shared mission to improve public safety and national security by staying ahead of persistent and escalating threats, enabling faster, more effective responses and ultimately protecting more lives in more places.

The sale of Carrier’s Global Access Solutions to Honeywell in December amounted to a dramatic finish to a big year in 2023 for mergers and acquisitions (M&A) in the physical security market. In the transaction between two industry giants, Honeywell sought to enhance and strengthen its building automation capabilities with the acquisition of Carrier’s Global Access Solutions business for $4.95 billion, in an all-cash transaction. Honeywell acquires Carrier Access business  The acquisition, which includes both hardware and software solutions, will mean a new corporate owner for the LenelS2 brand, a pioneering business for over 25 years in commercial and enterprise access solutions, including well-known offerings Onguard and Netbox. In addition, the acquisition covers the Onity brand of electronic locks, including hospitality access, mobile credentials, and self-storage access; and the Supra brand of cloud-based electronic real estate lockboxes.  ADT sells commercial business, which rebrands as Everon  ADT Inc. announced the sale of its commercial security, fire, and life safety business unit to GTCR ADT Inc., another industry giant and a trusted brand in smart home and small business security, announced the sale of its commercial security, fire, and life safety business unit to GTCR, a private equity firm, for a purchase price of $1.6 billion.  ADT Commercial, a security integrator and premier provider of commercial security, fire, and life safety in the United States, announced that it will move forward as a standalone organisation and rebrand as Everon.  Bosch to sell building technologies products  Bosch Building Technologies announced in 2023 that it is realigning its Building Technologies division to focus solely on its regional integrator business, with solutions and services for building security, energy efficiency, and building automation. Therefore, Bosch plans to sell most of the Building Technologies division’s product business. At year-end, Bosch was seeking a buyer who would take on all three business units with their associates and locations. This includes the Video, Access and Intrusion, and Communication business units, and affects some 4,300 associates at more than 90 locations worldwide. Building its integrator business earlier in 2023, Bosch announced the acquisition of Paladin Technologies, Inc., headquartered in Vancouver, Canada, a provider of security and life safety solutions and system integration services in North America. Motorola acquires IPVideo, creator of HALO Sensor In another deal emerging late in 2023, Motorola Solutions acquired IPVideo Corp., Bay Shore, N.Y., the creator of the HALO Smart Sensor, an all-in-one intelligent sensor that detects real-time health and safety threats. The powerful capabilities of the HALO sensor extend Motorola’s end-to-end physical security offering by integrating a non-video threat detection product into the safety and security ecosystem. IDIS acquires Costar Technologies  Costar has a sales channel of over 100 distributors and 1,000 systems integrators across the U.S. Korean video manufacturer IDIS and U.S. company Costar Video Systems had enjoyed a long-term existing ODM (original design manufacturer) relationship, and approximately 60% of Costar Video products were already made by IDIS. Therefore, it made sense when IDIS Co., Ltd. and Costar Technologies Inc. announced an agreement and plan to merge, with IDIS acquiring Costar. Leveraging Costar's established distribution networks and sales channels in the U.S. gives a significant boost to IDIS' growth strategy, which is founded on building long-term relationships with systems integrators. Costar has a sales channel of over 100 distributors and 1,000 systems integrators across the U.S. that will benefit from IDIS’ NDAA-compliant and 100% Korean-made technology. SECOM invests in Brivo and Eagle Eye  Eagle Eye Networks, a cloud video surveillance company, and Brivo, a provider of cloud-based access control and smart space technologies, announced one of the largest investments to date in cloud physical security in 2023.  SECOM CO., LTD, based in Japan and one of the largest security integration companies in the world, has made a primary equity investment of $192 million in the two companies, $100 million in Eagle Eye Networks, and $92 million in Brivo. $100M primary equity investment Brivo will also use the additional investment to continue expanding in Europe, Latin America, and Asia Pacific Eagle Eye Networks, a global pioneer in cloud video surveillance, announced it will use the $100M primary equity investment to expand its suite of AI-powered products, fund geographic expansion, and enhance its enterprise features.  Brivo will use the investment to grow sales and marketing, accelerate product development scale support and operational functions, and evaluate strategic acquisitions. Brivo will also use the additional investment to continue expanding in Europe, Latin America, and Asia Pacific, and enhance the smart spaces and AI functionality in the Brivo Access Platform.  ACRE buys PremiSys Portfolio  ACRE, a security company built on acquisitions, is continuing to broaden its portfolio and serve the expanding needs of its customer base. In 2023, ACRE acquired the PremiSys software and hardware portfolio and assets from IDenticard.  PremiSys’ technologies enable organisations to self-manage door access and view integrated video and lockdown facilities. The acquisition extends opportunities for ACRE in healthcare, education, data centers, and senior living facilities.  Qognify is a part of Hexagon  Qognify extends Hexagon’s real-time monitoring and security reach to detect, assess, and respond Qognify, a provider of video (VMS) and enterprise incident management (EIM) solutions announced that it has become a part of Hexagon. Qognify joins the Safety, Infrastructure & Geospatial division of Hexagon, following the completion of its acquisition originally announced on Dec. 19, 2022.  Qognify extends Hexagon’s real-time monitoring and security reach to detect, assess, and respond to incidents, providing a more robust offering. ASSA ABLOY continues acquisition trend  ASSA ABLOY continued to acquire companies in 2023 to strengthen its position in mature markets by adding complementary products and solutions to the core business. Among the companies acquired in 2023 were Ghost Controls, a U.S. supplier of automated residential gate openers, and Securitech Group, a manufacturer of high-security mechanical and electronic door hardware products in the U.S.  Door and fencing ASSA ABLOY also acquired Leone Fence, a Canadian manufacturer, distributor, and installer of fencing products for commercial and residential applications, and Lawrence Hardware and Gallery Specialty, providers of commercial hinges, locksets, exit devices, and door hardware accessories in Canada. Another new acquisition is Inovadoor Portas Industriais Ltda, a Brazilian manufacturer of sectional and high-speed doors.  Earlier in 2023, ASSA ABLOY completed the acquisition of Spectrum Brands’ Hardware and Home Improvement division and the divestment of Emtek and the Smart Residential business in the U.S. and Canada to Fortune Brands.