- Allegion (ALLE, Financial) announces acquisition of ELATEC for €330 million.
- The deal strengthens Allegion's global electronics portfolio in high-growth markets.
- Expected to close in Q3 2025, enhancing Allegion's strategic relationships.
Allegion plc (ALLE), a prominent global provider of security products and solutions, has entered a definitive agreement to acquire ELATEC, a leader in security and access technology, from Summit Partners for €330 million on a cash-free, debt-free basis. This acquisition will bolster Allegion's electronics portfolio and align with its strategic growth in high-demand, attractive non-residential markets.
ELATEC, based in Germany, specializes in RFID credentials and reader solutions. Its portfolio boasts compatibility with nearly 100 types of credentials, which significantly complements Allegion's existing offerings. The acquisition is projected to be accretive to Allegion's 2026 adjusted earnings per share (EPS), with ELATEC expected to generate between €60-€65 million in net sales that year.
The transaction, which Allegion plans to fund using a mix of cash on hand and existing revolving credit facilities, is anticipated to close in the third quarter of 2025, pending customary closing conditions. ELATEC will be integrated into Allegion's International segment to enhance growth and establish a comprehensive product range in the security market.
Allegion CEO John H. Stone emphasized the strategic importance of this acquisition, stating, "Adding ELATEC to the Allegion portfolio is a unique opportunity to scale our electronics business with technology core to our identity as a security solutions provider." Stone highlighted the synergy between ELATEC's line-powered readers and Allegion's battery-operated solutions as a key driver for the acquisition.
Gerhard Burits, CEO of ELATEC, will join Allegion to support the transition and drive future growth, ensuring a seamless integration of the two entities.
About Allegion: Allegion (ALLE, Financial) is a leading designer and manufacturer of innovative security and access solutions with a global presence, generating $3.8 billion in revenue in 2024. Its portfolio includes well-known brands like CISA®, Interflex®, LCN®, and Schlage®.
