(Cascadia Capital represented Lenel in this transaction)
UTC to Acquire Lenel, Industry Leader in Security Software
Monday March 21, 12:39 pm ET
HARTFORD, Conn., March 21 /PRNewswire-FirstCall/ -- United Technologies Corp. (NYSE: UTX - News) today announced plans to acquire Rochester, N.Y.-based Lenel Systems International Inc., a leading security systems and software developer. The purchase is subject to regulatory clearance.
The purchase price is approximately $400 million. The transaction is expected to close in the second quarter, and will not have a significant impact on UTC's 2005 revenues or earnings.
Lenel is a leader in the development and delivery of scalable, integrated security software systems and business solutions targeted at the commercial and government security market. The privately held company employs approximately 150 people and has customers in 75 countries. It will report as an independent entity to Olivier Robert, president of UTC's fire and security business, Chubb.
Robert said the acquisition of Lenel will provide access to innovative technology and market development capability in the Homeland Security and other high-end integrated segments.
"Lenel has a large end-user customer base and a strong distribution network of Value-Added Resellers (VARs) to deliver state of the art integrated solutions," Robert said. "This is a highly effective market channel that will continue to serve Lenel well."
Lenel's flagship product is its OnGuard(TM) suite of security software products, which includes access control, smart cards, alarm monitoring, digital video, biometrics, intrusion detection, and employee and visitor management capabilities.
Elena Prokupets, President of Lenel, said, "We are impressed with the vision and strategy demonstrated by UTC, and we believe that as part of this organization, Lenel will continue to deliver even greater value to our employees, customers and partners."
Lenel was founded in 1991 by Elena and Rudy Prokupets. More than 8,000 Lenel security systems have been installed for clients that include more than half the Fortune 100.
United Technologies, based in Hartford, Conn., is a diversified company that provides high technology products and services to the aerospace and commercial building industries worldwide.
This release includes "forward looking statements" concerning the anticipated completion and benefits of transactions that remain subject to uncertainties. Important factors that could cause actual results to differ materially from those anticipated or implied in forward looking statements include delays or inability to obtain necessary regulatory approvals and changes in anticipated or actual economic conditions. For information identifying other important economic, political, regulatory, legal, technological, competitive and other uncertainties, see UTC's SEC filings as submitted from time to time, including but not limited to, the information in the "Business" section of UTC's Annual Report on Form 10-K, the information included in UTC's 10-K and 10-Q Reports under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations," and the information included in Current Reports on Form 8-K.