Does UTC Plan to Acquire Nortek?
The Wall Street Journal reported that Nortek, which owns a slate of audio, video, security and home automation brands, may be in talks to be acquired by United Technologies Corp.
Rumor has it that United Technologies Corp., which owns security and home automation leader Interlogix, might be acquiring Nortek, which owns 2Gig and Core Brands.
Nortek (Nasdaq: NTK) shares were up 25% August 20 on reports that the manufacturer of HVAC, audio, video, security and home automation products could be acquired by United Technologies Corp. (NYSE: UTX), a conglomerate that owns the security and smart-home subsidiary Interlogix.
Citing “people familiar with the matter,” the Wall Street Journal reported the news Thursday that UTC (as it is popularly known) is “in talks to buy Nortek” but “It is unclear where talks between United Technologies and Nortek stand or what price is being discussed. As with all such discussions, they may not lead to a deal.”
The Journal notes that United Technologies makes Pratt & Whitney jet engines, Otis elevators and Carrier air-conditioning equipment, but the $86 billion (market value) company also owns Lenel Systems and Interlogix, which competes directly with Nortek’s 2Gig home automation line, which Nortek acquired for about $135 in 2013.
In addition to 2Gig, Nortek owns Core Brands, which operates Elan (home automation), SpeakerCraft, Niles, Xantech and other home technology brands.
At times on August 20, NTK stock has surpassed its 52-week high of $89.9, spiking at $93. NTK closed yesterday at $74.16
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About the Author
Julie Jacobson
Julie Jacobson, recipient of the 2014 CEA TechHome Leadership Award, is co-founder of EH Publishing, producer of CE Pro, Electronic House, Commercial Integrator, Security Sales and other leading technology publications. She currently spends most of her time writing for CE Pro in the areas of home automation, security, networked A/V and the business of home systems integration.
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