ASSA ABLOY Expands Its Reach with Strategic Acquisitions
January 14, 2025, 5:26 pm
In a bold move to enhance its foothold in the access control market, ASSA ABLOY has announced the acquisition of two companies: 3millID Corporation and Third Millennium Systems Ltd. This strategic maneuver, which spans both the United States and the United Kingdom, signals a significant shift in the landscape of physical access solutions.
ASSA ABLOY, a titan in the access solutions industry, is no stranger to expansion. With a workforce of 61,000 and annual sales reaching SEK 141 billion, the company is a global leader. Its innovations have become synonymous with security and convenience, providing seamless access to both physical and digital spaces. The recent acquisitions of 3millID and Third Millennium are poised to further solidify this position.
3millID, founded in 2015 and based in Highlands Ranch, Colorado, specializes in proprietary access control readers and technology-enabled products. The company has carved out a niche in the North American market, serving enterprise customers with cutting-edge solutions. On the other side of the Atlantic, Third Millennium, established in 1996 in Wales, UK, offers robust access control solutions and software tailored for enterprise and government clients across Europe. The synergy between these two companies and ASSA ABLOY is palpable.
The partnership between 3millID and Third Millennium has been in place since 2015, focusing on technology development and sales. This existing relationship will likely smooth the integration process, allowing ASSA ABLOY to leverage their combined expertise swiftly. With a total of around 40 employees, the transition should be manageable, allowing for a seamless blend into ASSA ABLOY’s Physical Access Control Solutions Business Area.
Financially, the acquisition appears promising. The two companies reported sales of approximately MUSD 21 in 2023, boasting a strong EBIT margin. This acquisition is expected to be accretive to earnings per share (EPS) from the outset, a welcome prospect for investors. ASSA ABLOY’s commitment to enhancing its product offerings is evident, as it seeks to provide customers with more choices and improved relevance in an ever-evolving market.
Nico Delvaux, President and CEO of ASSA ABLOY, expressed enthusiasm about the acquisition, highlighting the technological advancements that 3millID and Third Millennium bring to the table. This sentiment echoes the company’s broader strategy of investing in core physical access control technologies. By integrating these new capabilities, ASSA ABLOY aims to bolster its market presence, particularly outside the United States.
Björn Lidefelt, EVP and Head of HID, emphasized the importance of these acquisitions in expanding customer options. The landscape of access control is rapidly changing, driven by technological advancements and evolving customer needs. ASSA ABLOY’s proactive approach positions it well to adapt to these changes, ensuring it remains at the forefront of the industry.
The timing of this acquisition is also noteworthy. As businesses increasingly prioritize security and access management, the demand for innovative solutions is on the rise. ASSA ABLOY’s move to acquire 3millID and Third Millennium comes at a time when the market is ripe for growth. The integration of these companies will likely enhance ASSA ABLOY’s ability to meet this demand head-on.
Moreover, the acquisition aligns with ASSA ABLOY’s long-term vision of creating a more open world. By enhancing its product portfolio, the company aims to provide solutions that not only secure spaces but also facilitate ease of access. This dual focus on security and convenience is crucial in today’s fast-paced environment, where customers expect seamless experiences.
Looking ahead, the acquisition is subject to customary closing conditions and is expected to finalize in the first quarter of 2025. This timeline allows for careful planning and execution, ensuring that the integration process is smooth and efficient. As ASSA ABLOY prepares to welcome 3millID and Third Millennium into its fold, the anticipation is palpable.
In conclusion, ASSA ABLOY’s acquisition of 3millID and Third Millennium marks a significant step in the company’s growth trajectory. By expanding its capabilities in the access control market, ASSA ABLOY is not just enhancing its product offerings; it is also reinforcing its commitment to innovation and customer satisfaction. As the company navigates this new chapter, the industry will be watching closely. The future of access solutions is bright, and ASSA ABLOY is poised to lead the way.
ASSA ABLOY, a titan in the access solutions industry, is no stranger to expansion. With a workforce of 61,000 and annual sales reaching SEK 141 billion, the company is a global leader. Its innovations have become synonymous with security and convenience, providing seamless access to both physical and digital spaces. The recent acquisitions of 3millID and Third Millennium are poised to further solidify this position.
3millID, founded in 2015 and based in Highlands Ranch, Colorado, specializes in proprietary access control readers and technology-enabled products. The company has carved out a niche in the North American market, serving enterprise customers with cutting-edge solutions. On the other side of the Atlantic, Third Millennium, established in 1996 in Wales, UK, offers robust access control solutions and software tailored for enterprise and government clients across Europe. The synergy between these two companies and ASSA ABLOY is palpable.
The partnership between 3millID and Third Millennium has been in place since 2015, focusing on technology development and sales. This existing relationship will likely smooth the integration process, allowing ASSA ABLOY to leverage their combined expertise swiftly. With a total of around 40 employees, the transition should be manageable, allowing for a seamless blend into ASSA ABLOY’s Physical Access Control Solutions Business Area.
Financially, the acquisition appears promising. The two companies reported sales of approximately MUSD 21 in 2023, boasting a strong EBIT margin. This acquisition is expected to be accretive to earnings per share (EPS) from the outset, a welcome prospect for investors. ASSA ABLOY’s commitment to enhancing its product offerings is evident, as it seeks to provide customers with more choices and improved relevance in an ever-evolving market.
Nico Delvaux, President and CEO of ASSA ABLOY, expressed enthusiasm about the acquisition, highlighting the technological advancements that 3millID and Third Millennium bring to the table. This sentiment echoes the company’s broader strategy of investing in core physical access control technologies. By integrating these new capabilities, ASSA ABLOY aims to bolster its market presence, particularly outside the United States.
Björn Lidefelt, EVP and Head of HID, emphasized the importance of these acquisitions in expanding customer options. The landscape of access control is rapidly changing, driven by technological advancements and evolving customer needs. ASSA ABLOY’s proactive approach positions it well to adapt to these changes, ensuring it remains at the forefront of the industry.
The timing of this acquisition is also noteworthy. As businesses increasingly prioritize security and access management, the demand for innovative solutions is on the rise. ASSA ABLOY’s move to acquire 3millID and Third Millennium comes at a time when the market is ripe for growth. The integration of these companies will likely enhance ASSA ABLOY’s ability to meet this demand head-on.
Moreover, the acquisition aligns with ASSA ABLOY’s long-term vision of creating a more open world. By enhancing its product portfolio, the company aims to provide solutions that not only secure spaces but also facilitate ease of access. This dual focus on security and convenience is crucial in today’s fast-paced environment, where customers expect seamless experiences.
Looking ahead, the acquisition is subject to customary closing conditions and is expected to finalize in the first quarter of 2025. This timeline allows for careful planning and execution, ensuring that the integration process is smooth and efficient. As ASSA ABLOY prepares to welcome 3millID and Third Millennium into its fold, the anticipation is palpable.
In conclusion, ASSA ABLOY’s acquisition of 3millID and Third Millennium marks a significant step in the company’s growth trajectory. By expanding its capabilities in the access control market, ASSA ABLOY is not just enhancing its product offerings; it is also reinforcing its commitment to innovation and customer satisfaction. As the company navigates this new chapter, the industry will be watching closely. The future of access solutions is bright, and ASSA ABLOY is poised to lead the way.