Telular Acquired by Electronic Instruments Maker AMETEK for $525M
The Telguard parent company will become part of the AMETEK Electronic Instruments Group, with plans to be expanded internationally.
Telular Corp. will become part of the AMETEK Electronic Instruments Group (EIG). Telular is the parent company of Telguard.
BERWYN, Pa. — AMETEK (NYSE: AME), a global manufacturer of electronic instruments and electromechanical devices, has completed a deal to acquire Telular Corp., the parent company of wireless alarm communication solutions provider Telguard, for approximately $525 million.
Telular, with annual sales of approximately $165 million, is a provider of communication solutions for logistics management, tank monitoring and security applications. The Chicago-based company’s end-to-end solutions include hardware, proprietary software and wireless connectivity services to enhance the efficiency and safety of critical assets.
During an earnings call with investors on Nov. 1, AMETEK CEO David Zapico said 65% of Telular’s sales are generated from its recurring subscription-based business. Telular’s sales are expected to continue to grow at a roughly 10% annual rate, as adoption of its IoT-based communications solutions are still in the early stages.
Zapico described Telular as “very profitable, mid-20s EBITDA with room for margin expansion.” AMETEK will look to leverage cost synergy opportunities , with opportunities to expand the business internationally.
“In addition to the strength of the Telular business, we see tremendous value and leveraging their IoT capabilities across other AMETEK businesses. Our highly differentiated measurement instrumentation and domain expertise in our niche markets combined with Telular’s IoT platform forms the core of an expanded digital strategy for AMETEK and opens up attractive growth opportunities for our businesses,” Zapico said.
Zapico went on to explain he expects to leverage the Telular platform across other AMETEK businesses, “where we currently collect, measure and analyze important process variables across mission critical applications.”
Concurrent to the Telular acquisition, AMETEK announced it also purchased Forza Silicon Corp., a manufacturer of high-performance imaging sensors used in medical, defense, commercial and industrial applications. Forza Silicon, based in Pasadena, Calif., was purchased for approximately $40 million.
As with Telular, Forza Silicon will be integrated into AMETEK’s Electronic Instruments Group (EIG). AMETEK reports annualized sales of approximately $4.8 billion.
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About the Author
Rodney Bosch, Senior Editor
Although Bosch’s name is quite familiar to those in the security industry, his previous experience has been in daily newspaper journalism. Prior to joining SECURITY SALES & INTEGRATION in 2006, he spent 15 years with the Los Angeles Times, where he performed a wide assortment of editorial responsibilities, including feature and metro department assignments as well as content producing for latimes.com. Bosch is a graduate of California State University, Fresno with a degree in Mass Communication & Journalism. In 2007, he successfully completed the National Burglar and Fire Alarm Association’s National Training School coursework to become a Certified Level I Alarm Technician.
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