Allegion, a security technology, solutions and services provider, closed the acquisition of access control manufacturer ELATEC on July 1st, from Summit Partners for $382 million.
Elatec is a manufacturer of security and access technology, specializing in RFID credentials and readers solutions designed in Germany and sold globally. It’s portfolio of readers leverages their internally developed software stack and ensures compatibility with nearly 100 credential types, making the company a leader in interoperability, which aligns well with Allegion’s partner of choice strategy, according to the companies.
Allegion funded the acquisition through a combination of cash on hand and borrowings under its existing revolving credit facility.
“Natural” Fit
Allegion President and CEO John H. Stone said Elatec is a leader in their field and a natural extension of their own reader and credential product lines with high-single digit to low-double digit growth consistent with Allegion’s financial profile in electronics
“Adding Elatec to the Allegion portfolio is a unique opportunity to scale our electronics business in attractive non-residential markets with technology that’s core to who we are as a pureplay security and access solutions provider,” said Stone in a statement. “This strategic acquisition builds on our legacy of innovation, market leadership and superior customer experiences and will result in added value for our shareholders.”
Elatec’s Place in Allegion
Elatec’s global diversified customer base spans non-residential markets, ranging from education, healthcare and hospitality to enterprise and industrial. The company expects to generate approximately $70-75 million in net sales in 2026.
Gerhard Burits, CEO of Elatec, will join Allegion to support a smooth transition and accelerate growth as it will report into the Allegion International segment, led by Senior Vice President Tim Eckersley.
“This will be a powerful combination of expertise, with Elatec’s leadership in line-powered readers complementing Allegion’s proficiency in battery-operated solutions,” Burits stated. “Together, we will offer a comprehensive range of products that provide meaningful market differentiation and solidify our joint position as a partner of choice,”