Allegion to Acquire ELATEC in $382M Deal to Expand Access Control Tech
Global security products provider Allegion (NYSE: ALLE) has announced plans to acquire ELATEC, a German-based manufacturer of multi-technology readers and credentialing solutions. The deal, valued at approximately $382 million (€330 million), is expected to close in the third quarter of 2025, pending regulatory approvals and customary closing conditions.
The acquisition marks a strategic expansion of Allegion’s electronics business and aims to strengthen the company’s position in digital access control across a wide range of industries, including healthcare, commercial real estate and industrial manufacturing.
Broader reach in reader and credential technologies
ELATEC, headquartered near Munich, specializes in RFID and mobile credential readers used to authenticate user access to devices and physical spaces. Its technologies are often deployed in secure printing, medical device access and EV charging infrastructure. The company operates in more than 110 countries and employs around 160 people worldwide.
According to Allegion, integrating ELATEC's portfolio will complement existing Allegion brands such as Schlage, SimonsVoss and ISONAS, while accelerating global growth in mobile- and software-based credentials.
“Adding ELATEC to the Allegion portfolio is a unique opportunity to scale our electronics business in attractive non-residential markets with technology that’s core to who we are as a pureplay security and access solutions provider,” Allegion President and CEO John H. Stone said. “ELATEC is a leader in their field and a natural extension of our own reader and credential product lines with high-single digit to low-double digit growth consistent with Allegion’s financial profile in electronics. This strategic acquisition builds on our legacy of innovation, market leadership and superior customer experiences and will result in added value for our shareholders.”
Continued focus on open architecture and integration
The companies share an open-architecture approach that emphasizes interoperability. Allegion leadership indicated that ELATEC’s products and software platform will remain brand-agnostic, continuing to integrate with a wide variety of credential types and access management systems.
ELATEC will report into Allegion’s International segment, led by Senior Vice President Tim Eckersley. Gerhard Burits, ELATEC’s CEO, will join Allegion with the business to support a smooth transition and accelerate growth.
“This will be a powerful combination of expertise, with ELATEC's leadership in line-powered readers complementing Allegion's proficiency in battery-operated solutions. Together, we will offer a comprehensive range of products that provide meaningful market differentiation and solidify our joint position as a partner of choice,” Burits stated.
Analyst insight on deal impact
Industry authority Lee Odess, founder of the Access Control Executive Brief, views the Allegion-ELATEC deal as more than a conventional acquisition. “This isn’t just a straightforward acquisition story,” he said. “There are multiple layers to unpack” — ranging from financial strategy and technology integration to litigation considerations, vertical market dynamics, and international growth.
According to Odess, the move is particularly significant for Allegion’s European presence, especially in connection with SimonsVoss, rather than being primarily North America-focused. “Even with that,” he added, “it makes sense for everyone.” He described the transaction as “smart for all parties involved,” noting that ELATEC “found a nice home,” and called the valuation “eye-opening and fascinating to analyze.”
Odess also pointed to the underreported role of ELATEC Chairman Joe Grillo, whom he described as “a legend when it comes to transactions and growth in our industry.” Grillo joined ELATEC’s board in 2018 following a majority recapitalization by growth equity investor Summit Partners, which named him chairman to leverage his decades of experience in the global electronic security industry. In 2023, private equity firm SGT Capital reached a definitive agreement to acquire ELATEC from Summit.
A veteran leader with more than 30 years in electronic security and identity, Grillo founded ACRE in 2012 and previously led HID through a pivotal growth phase — scaling the business from $15 million to more than $100 million before orchestrating its sale to ASSA ABLOY. At ELATEC, he brought a proven track record in executing strategic transactions and scaling businesses across markets and verticals.
Ultimately, Odess sees the deal as part of a broader shift in access control. “There’s never been a better time to be in the access control industry,” he said, emphasizing that the story is less about the past three decades and more about “positioning for the next 30 years.”
Financial Details and Timeline
Allegion will fund the acquisition through existing cash and revolving credit, according to the announcement. The company expects the transaction to be accretive to adjusted earnings per share in 2025. Upon closing, ELATEC will operate within Allegion’s International segment.
