Honeywell to Buy Ultrak’s CCTV Unit for $36M
MINNEAPOLIS—Honeywell Automation and Control Solutions (ACS) has agreed to purchase Ultrak Inc.‘s CCTV business for $36 million in cash plus the assumption of trade liabilities. Ultrak will retain its access control business, consumer/do-it-yourself business, industrial video-product business, mobile video-product business and alarm-management business.
Honeywell says it will pay Ultrak $30.6 million at closing. The remaining amount will be paid in three installments throughout an 18-month period. The transaction is subject to Ultrak shareholder approval and is expected to close in approximately two to three months.
Approximately 300 of Ultrak’s current 520 employees will join Honeywell. In addition, Honeywell has agreed to license the Ultrak name.
“Expanding our capabilities in the CCTV market is the logical next step in the evolution of our integrated safety and security solutions for the residential, commercial, industrial and government markets,” says Kevin Gilligan, president and CEO of Honeywell ACS. Niklaus Zenger, chairman and CEO of Ultrak, adds, “This transaction will allow Ultrak to focus on our new strategy, and will enormously strengthen the financial base of the company.”
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