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Honeywell to acquire dispatch communications company


December 15, 2021
By SP&T Staff

Honeywell recently announced it has agreed to acquire privately-held US Digital Designs Inc., a Tempe, Ariz.-based company, for a purchase multiple of ~14X EBITDA in an all-cash transaction.

The company delivers alerting and dispatch communications solutions, which, according to a statement, enhance first responders’ efficacy and enable faster emergency response times.

The acquisition will be integrated into Honeywell’s Fire and Connected Life Safety systems business and will expand Honeywell’s line of solutions for public safety communications.

When combined with Honeywell’s solutions, US Digital Designs’ offerings will securely transmit detailed data about the emergency, such as the type of hazard, severity, and location within the impacted building, before first responders arrive onsite.

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“The future of public safety relies on technology. We are integrating intelligence throughout the fire alarm transmission process – from the fire panel to the first responders – and providing uninterrupted communications to first responders,” said Doug Wright, president and chief executive officer, Honeywell Building Technologies, in a company statement. “Integrating US Digital Designs’ fire station alerting capabilities with Honeywell’s Connected Life Safety Services will allow us to eliminate manual processes and significantly reduce response time. Helping first responders arrive faster on site means potentially saving more lives and providing a higher level of asset protection.”

“We are pleased to join the Honeywell team and support its efforts to add more automation and digitization to the public safety communications process. Reducing response times means we can protect more people, buildings and their assets,” said Todd Smith, president and chief electrical engineer, US Digital Designs.

With this acquisition, Honeywell says it will further expand its public safety offerings designed to improve the safety of first responders and building occupants. These offerings include Fiplex bi-directional amplifiers (BDAs) that provide continuous and critical in-building radio coverage. Honeywell acquired a majority stake in Fiplex Communications Inc., in March 2021.

There is no change to Honeywell’s financial guidance as a result of the acquisition. The acquisition is expected to close in the first quarter of 2022 and is subject to certain regulatory approvals and other customary closing conditions.

This is the fourth acquisition announced by Honeywell in 2021.