Recent M&A activity across the global access control market suggests a trend to pursue commercial applications, supported by moves focused on software-focused M&A (e.g., facial recognition technology) to bolster access platforms, and hardware-focused M&A (e.g., security cameras) to augment portfolio strategies. Illustratively, Honeywell’s acquisition of Carrier’s Global Access Solutions (i.e., LenelS2, Onity, and Supra) demonstrates a long-term interest in scaling cloud-based services and capabilities – in contrast, Assa Abloy has primarily pursued hardware-driven acquisitions (e.g., automatic doors) to expand access portfolio applications and end-market participation.
While residential access control M&A has been less notable, Assa Abloy’s divestiture of Emtek, Shaub, and the North American business of Yale and August, completed the $4.3B acquisition of the Hardware and Home Improvement (HHI) division of Spectrum Brands (i.e., smart locks and door / window hardware).
Going forward, M&A for both access solutions and monitoring / surveillance applications are migrating to software-centric deals, as the access control industry migrates from proprietary hardware systems to broader platform strategies, requiring business model shifts (e.g., hardware to software) and new monetization opportunities (e.g., SaaS, API fees).
