Honeywell to Acquire Alerting and Dispatch Tech Provider US Digital Designs

US Digital’s products include the Phoenix G2 Fire Station Alerting System, which has features like automatic alerts to fire stations.

ATLANTA — Honeywell (Nasdaq: HON) announces it has agreed to acquire privately held US Digital Designs, provider of a suite of hardware and software solutions, which includes dispatch communication aids and mobile alerting applications, provides situational awareness and helps reduce response times.

Based in a Tempe, Ariz., US Digital Designs’ products include the Phoenix G2 Fire Station Alerting System, which has features like automatic alerts to fire stations that reduce dispatcher “on-hold” time and dashboards to keep track of alerts and fire station alarms.

Honeywell, which didn’t disclose the sale price, said the deal has a purchase multiple of 14 times earnings before interest, taxes, depreciation and amortization.

The acquisition will be integrated into Honeywell’s Fire and Connected Life Safety systems business and will expand its line of solutions for public safety communications, providing first responders with better situational awareness of building emergencies and improved life safety, according to the announcement.

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, all before first responders arrive onsite.

The existing communications infrastructure between fire stations and emergency centers often uses legacy, manual technology, which slows response times and affects the accuracy of transmitted information. In contrast, solutions from US Digital Designs instantaneously connect dispatch centers to fire stations, improving both the quality of the information shared and the time it takes for first responders to arrive at an emergency.

It is estimated that in the coming years, aligned to pending federal legislation to improve the 911 system, several billions will be invested in the United States alone to upgrade legacy alarm infrastructure to provide faster, more precise alarm alerting to first responders.

“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,” says Doug Wright, president and CEO, Honeywell Building Technologies. “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.”

US Digital Designs offerings complement Honeywell’s suite of solutions that help its customers meet their environmental, social and governance (ESG) goals, including improving safety for first responders, according to the announcement.

“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,” says Todd Smith, president and chief electrical engineer, US Digital Designs.

With this acquisition, Honeywell 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 in March.

The acquisition is expected to close in the first quarter of 2022 and is subject to certain regulatory approvals and other customary closing conditions.

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