Nice, the Italian company behind security brands abode and Hysecurity, has acquired Carlsbad, Calif.-based Nortek Control for $285 million. Nortek, which is most known in the security industry for its 2GIG panels and Linear access control solutions, was previously owned by U.K.-based Melrose Industries and had rebranded from Nortek Security & Control in September of 2020.
All of the Nortek Control brands – 2GIG, ELAN, Linear, MightyMule, Proficient, SpeakerCraft, Gefen, Xantech, Panamax, Furman, numera and IntelliVision – will enable Nice to provide a full suite of integrated solutions for residential, commercial, industrial, and government customers, including consumer DIY, custom and professionally-installed specialized products, and high-security applications.
According to a press release, the move substantially strengthens the North American presence of Nice – a 30-year-old company – while doubling its R&D capacity to further accelerate innovation and expansion of platform-based integrated solutions. “There was very little overlap of the portfolio offerings between our two companies,” explains Luca Longhin, Nice North America President. “The goal is to be recognized as the leading brand, offering platform-based integrated solutions across smart home, security, and home & building automation markets.”
All brands previously under the Nortek Control portfolio will be integrated together with Nice brands into a single portfolio of brands, while all sub-brands will retain their existing identify but will be under the Nice umbrella, according to Nortek Control CEO Christopher Larocca.
“The short answer is there will be no impact to [Nortek's dealer] partners,” adds Larocca, who joined Nortek as its CEO in February 2020. “The longer answer is that this deal transforms Nice into a single-source provider of the most complete, integrated product ecosystem for homes and buildings and that, in time, partners of both Nice and Nortek Control will experience through an enhanced relationship driven by a larger combined organization with an even stronger commitment to the channel. In time, partners of both companies will have access to a broader portfolio of integrated solutions. The combined R&D resources will increase overall capacity to deliver systems across channels.”
As for changes to Nortek, Edoardo Malfè, previously VP of Global Operations for Nice, will assume the role of CEO for Nortek Control immediately. Larocca will remain onboard to assist with the transitionary period.
“Our plan is to retain all currently active facilities,” Longhin says. “The Nortek Control executive team represents an important strategic asset and will be vital in ensuring business continuity. The executive team at Nice and the executive team from Nortek Control will work together to review all possibilities for the future now that we are a single organization. We will maintain headquarters in Italy, with Nice North America in Kent, Wash., and also maintain the [Nortek headquarters] facilities in Carlsbad, Calif.
According to the press release, business will be conducted as usual throughout 2022. The North American organization will immediately begin collaborating with the Nortek Control team on blending portfolios and operations to emerge fully integrated in 2023.
“It looks like the industry is continuing on its M&A run, and this is a strong international move by Nice,” says Brian Ruttenbur, managing director of Imperial Capital. “The demand for smart home solutions continues to rise. We have tracked 33 acquisitions by the leading U.S. public companies in the sector in the last year, and dozens more by private and international companies.”
Most recently, Nortek Control won the Consumer Technology Association (CTA) 2021 Security and Surveillance Product of the Year Award for its 2GIG Edge Security and Automation Panel in January. The company also announced a partnership with Alarm.com in August on the 2GIG New Home Program.
“I don’t know a whole lot about Nice, but when you look at their collection of companies, which I know, it would seem to me that this is really good news for Nortek,” says Mitchell Klein, Executive Director of the Z-Wave Alliance. “Of course, there will probably be some consolidation, but I think it is good for the industry to keep these brands alive. I think it bodes well, so I am actually very happy to hear about this.”
According to Ruttenbur’s most recent analysis for Imperial Capital: “Demand for smart home devices is up dramatically with our channel checks confirming that there is no slowdown in consumer spending in this sector. ADT recently stated that [approximately] 80% of new customers are wanting smart home solutions, not just security. Of the most desired consumer smart home devices, smart thermostats and cameras remain at the top of the list.”
“Due to the sheer size of the portfolio, Nortek Control has many competitors at the brand-level; however, given the integration into Nice and access to additional resources, Nice now stands out a truly unique provider of full-spectrum solutions in North America and around the world,” Longhin says.
Paul Rothman is Editor-in-Chief of Security Business magazine. Access the current issue, full archives and apply for a free subscription at www.securitybusinessmag.com.
Paul Rothman | Editor-in-Chief/Security Business
Paul Rothman is Editor-in-Chief of Security Business magazine. Email him your comments and questions at [email protected]. Access the current issue, full archives and apply for a free subscription at www.securitybusinessmag.com.
