Allegion, a leading global security products and solutions provider, announced it has signed a definitive agreement to acquire ELATEC, including Elatec and other group entities from Summit Partners for €330 million on a cash-free, debt-free basis. Allegion plans to fund the acquisition through a combination of cash on hand and borrowings under its existing revolving credit facility.
What ELATEC does: ELATEC is a leading manufacturer of security and access technology, specializing in RFID credentials and readers solutions. And ELATEC’s extensive portfolio of readers leverages its internally developed software stack, ensuring compatibility with nearly 100 credential types. This makes the company a leader in interoperability, aligning 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. And 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).
Plans following the acquisition: 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 international network.
ELATEC will report to the Allegion International segment, led by Allegion Senior Vice President Tim Eckersley. And Gerhard Burits, CEO of ELATEC, will join Allegion with the ELATEC business to support a smooth transition and accelerate growth.
KEY QUOTES:
“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. 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.”
Allegion President and CEO John H. Stone
“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.”
Gerhard Burits
