Nortek to acquire 2GIG for US$135 million
Nortek announced that it plans to acquire 2GIG Technologies for US$135 million from APX Group.
February 19, 2013 By Staff
2GIG and its Go!Control home automation systems will be rolled into another of Nortek’s companies, Linear, which makes access control and surveillance products, said Duane Paulson, senior vice-president, product and market development, Linear, in an interview.
Linear has a long-standing relationship with 2GIG, he explained. “Linear’s engineering team helped design the product and has manufactured it since the very beginning.”
2GIG, which opened for business in 2007, is currently based in Lehi, Utah, but also has a facility in Carlsbad, Calif., where Linear is located. Following the acquisition, 2GIG will move its headquarters to Carlsbad to leverage its new relationship with Linear.
2GIG has a supplier relationship with Vivint, a large provider of home security services to the North American market. Nortek’s acquisition agreement with 2GIG also includes a five-year supply agreement with Vivint.
“Acquiring 2GIG will position our technology solutions business as one of the world’s top-tier hardware developers and manufacturers in the rapidly growing residential security and home automation markets,” said Michael J. Clarke, Nortek’s chief executive officer, in a statement issued by the company. “The transaction allows us to better provide long-term support to Vivint and other 2GIG customers. We look forward to welcoming 2GIG’s talented employee team into the Nortek family of companies.”
“Joining forces with 2GIG will provide the other companies in our technology solutions group with a range of exciting cross-selling opportunities,” added Sean Burke, group president of Nortek’s technology solutions segment. “2GIG offers products such as home thermostats, alarms and wireless carbon monoxide detectors that can be leveraged by these Nortek brands to grow their business with existing customer accounts. At the same time, these brands offer products that can expand and enhance the 2GIG home automation platform, potentially opening doors to new market opportunities.”
Paulson agreed, adding, “We will all, as a combined entity, have a broader basket of goodies to sell from. We will truly be covering intrusion systems, access control and integrated systems, and the personal emergency response systems marketplace.”
Nortek’s other business lines include residential heating and cooling, ventilation and commercial air solutions. Pending regulatory approval, the acquisition of 2GIG expected to close in the first half of 2013.
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