Allegion to Acquire ELATEC, Bolstering Electronics Portfolio With Leader in Reader and Credential Technology
- Expands Allegion's global electronics portfolio in high-growth, attractive end markets
- €330 million purchase price on a cash-free, debt-free basis; Implies 2026E adjusted EBITDA multiple of approximately 18x
Allegion plc (NYSE:ALLE), a leading global security products and solutions provider, through one of its subsidiaries, has signed a definitive agreement to acquire ELATEC, including Elatec GmbH and other group entities, ("ELATEC") from Summit Partners for €330 million on a cash-free, debt-free basis. Allegion expects to fund the acquisition through a combination of cash on hand and borrowings under its existing revolving credit facility.
ELATEC is a leading manufacturer of security and access technology, specializing in RFID credentials and readers solutions designed in Germany and sold globally. ELATEC's extensive 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.
ELATEC's global diversified customer base spans non-residential markets, ranging from education, healthcare and hospitality to enterprise and industrial. The company expects ELATEC to generate approximately €60-€65 million in net sales in 2026 and be accretive to 2026 adjusted earnings per share (EPS).
As a result of this acquisition, Allegion will expand its global electronics portfolio in attractive end markets while also increasing strategic relationships with channel partners. ELATEC will leverage Allegion's strong demand creation engine and global network.
"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," Allegion President and CEO John H. Stone said. "ELATEC is a leader in their field and a natural extension of our own reader and credential product lines with high-single digit to low-double digit growth consistent with Allegion's financial profile in electronics. 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 will report into the Allegion International segment, led by Allegion Senior Vice President Tim Eckersley. Gerhard Burits, CEO of ELATEC, will join Allegion with the ELATEC business to support a smooth transition and accelerate growth.
"This will be a powerful combination of expertise, with ELATEC's leadership in line-powered readers complementing Allegion's proficiency in battery-operated solutions. Together, we will offer a comprehensive range of products that provide meaningful market differentiation and solidify our joint position as a partner of choice," said Burits.
This acquisition is expected to close in the third quarter of 2025, subject to customary closing conditions.
About Allegion
At Allegion (NYSE:ALLE), we design and manufacture innovative security and access solutions that help keep people safe where they live, learn, work and connect. We're pioneering safety with our strong legacy of leading brands like CISA®, Interflex®, LCN®, Schlage®, SimonsVoss® and Von Duprin®. Our comprehensive portfolio of hardware, software and electronic solutions is sold around the world and spans residential and commercial locks, door closer and exit devices, steel doors and frames, access control and workforce productivity systems. Allegion had $3.8 billion in revenue in 2024. For more, visit www.allegion.com.
Forward-Looking Statements
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