UTC to Acquire Lenel Systems

After many months of rumors, United Technologies Corporation announced this afternoon that it is planning to acquire Lenel Systems, a maker of enterprise-level software systems for security and systems integration.

According to a statement from UTC, the purchase price for Lenel is approximately $400 million, and the deal is expected to close in the second quarter of this year.

Lenel, which was founded in 1991 and is based in Rochester, N.Y., will remain as an independent entity, but will report to Olivier Robert, president of Chubb, UTC's fire and security business.

Lenel currently employs approximately 150 persons and has customers in 75 countries. The company's chief product is its OnGuard software system which allows for the merging of access control, smart cards, alarm monitoring, digital video, biometrics, intrusion detection, and employee and visitor management systems.

United Technologies Corporation, which is headquartered in Hartford, Conn., features a diversified corporate base, with numerous building systems companies such as Chubb (fire and security), Carrier (HVAC) and Otis (elevators and escalators). UTC, which was recently recognized by the Dow Jones Sustainability World Index as a company likely to produce consistent, long-term shareholder value, is also heavily weighted in the aerospace industry with divisions including Hamilton Sundstrand, Pratt & Whitney aircraft engines and Sikorsky helicopters.

"We are impressed with the vision and strategy demonstrated by UTC," said Elena Prokupets, president and co-founder of Lenel, in a prepared statement, "and we believe that as part of this organization, Lenel will continue to deliver even greater value to our employees, customers and partners."