Honeywell and Carrier announced separately Friday that the companies have come to an agreement on the purchase of Carrier’s Access Solutions business, which includes brands LenelS2, Onity and Supra. Honeywell will pay $4.95 billion in an all-cash deal that is expected to close in Q3 2024.
"Honeywell's strong track record delivering building automation products and services makes this a natural fit," Honeywell CEO Vimal Kapur said in a statement. "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 to create long-term, sustainable value."
The purchase comes on the heels of Honeywell’s recently announced technology portfolio realignment for 2024, when the company will “align its segments with three compelling megatrends: automation, the future of aviation, and energy transition,” according to a press release. The four business segments will be Aerospace Technologies, Industrial Automation, Building Automation, and Energy and Sustainability Solutions.
LenelS2, Onity and Supra would fall under the company’s Building Automation segment, which also includes established Honeywell brands such as MaxPro and Pro-Watch.
“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,” a press release explains.
As for Carrier, this marks the next step in the company’s full exit from the security industry. In addition to its Global Access Solutions business, Carrier has already announced that its residential and commercial fire brands, which include Kidde, Edwards, GST, Autronica, Marioff, and Det-Tronics are for sale.
In January 2022, Carrier sold UK-based Chubb Fire & Security to APi Group for $3.1 billion.
"[The Global Access Solutions] 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," Carrier Chairman & CEO David Gitlin said in a statement.
The Long and Winding Road for LenelS2 Continues
Founded in 1995 by Elena and Rudy Prokupets, Lenel Systems International and its OnGuard system has enjoyed a long run at or near the top of the enterprise access management software market. The Prokupets sold Lenel to United Technologies (UTC) in June 2005 for approximately $400 million.
UTC went on to acquire S2 Security – which was founded by access control software guru John Moss, also the founder of Software House – in 2018 and merged it with Lenel.
Carrier, meanwhile, was a subsidiary of UTC that split off from the parent company in 2020 following UTC’s merger with Raytheon. UTC’s full fire and security business somehow fell under the Carrier brand.
It remains to be seen what Honeywell plans to do with the LenelS2, Onity and Supra brand names, and SecurityInfoWatch has reached out to the company for comment.
Paul Rothman is Editor-in-Chief of Security Business magazine, a print publication hosted on SecurityInfoWatch.com.
