Allegion to acquire security tech firm ELATEC for €330 million

DUBLIN - Security products provider Allegion plc (NYSE: ALLE), with a market capitalization of $11.87 billion and annual revenue of $3.82 billion, announced Thursday it has signed a definitive agreement to acquire ELATEC, a manufacturer of RFID credentials and reader solutions, for €330 million on a cash-free, debt-free basis. According to InvestingPro data, Allegion maintains strong financial health with a "GOOD" overall rating.

The acquisition, expected to close in the third quarter of 2025, will be funded through a combination of cash on hand and borrowings under Allegion’s existing revolving credit facility. This funding approach appears sustainable given Allegion’s healthy current ratio of 2.17 and moderate debt levels, as highlighted in InvestingPro’s financial analysis (subscribers can access 8 additional key financial insights).

ELATEC specializes in security and access technology designed in Germany and sold globally. The company’s reader portfolio is compatible with nearly 100 credential types, serving diverse non-residential markets including education, healthcare, hospitality, enterprise, and industrial sectors.

Allegion expects ELATEC to generate approximately €60-€65 million in net sales in 2026 and contribute positively to adjusted earnings per share that year. The purchase price implies a 2026 estimated adjusted EBITDA multiple of approximately 18x.

"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," said John H. Stone, Allegion President and CEO.

Following the acquisition, ELATEC will report into the Allegion International segment. Gerhard Burits, ELATEC’s CEO, will join Allegion to support the transition and growth initiatives.

The transaction remains subject to customary closing conditions.

Allegion, which reported $3.8 billion in revenue in 2024, designs and manufactures security and access solutions under brands including CISA, Interflex, LCN, Schlage, SimonsVoss and Von Duprin. Based on InvestingPro’s Fair Value analysis, the stock is currently trading near its Fair Value, with an EBITDA of $922.3 million and a consistent track record of dividend payments for 12 consecutive years.

In other recent news, Allegion plc has announced the acquisition of Trimco Hardware, a North American manufacturer known for its high-performance door hardware. This acquisition is expected to bolster Allegion’s portfolio in the Americas by integrating Trimco’s brands and assets. Trimco, with a 75-year history, specializes in architectural pulls, sliding door hardware, and mechanical locks, primarily serving commercial and institutional markets. Allegion’s Senior Vice President, Dave Ilardi, highlighted that this integration will provide increased opportunities to address complex security and access challenges. Jason Bennett, the owner of Trimco, will join Allegion as the general manager of Trimco, ensuring a smooth transition and fostering growth for the combined entity. Allegion reported $3.8 billion in revenue in 2024, underscoring its strong market presence. While financial details of the acquisition remain undisclosed, this move aligns with Allegion’s strategy to consolidate its market position and expand its product offerings. The company is known for its comprehensive portfolio, including locks, door closers, exit devices, steel doors and frames, as well as access control and workforce productivity systems.

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