Honeywell announced it has agreed to acquire privately held US Digital Designs Inc., a Tempe, Ariz.-based company, for a purchase multiple of ~14X EBITDA in an all-cash transaction. The company delivers alerting and dispatch communications solutions, which enhance first responders’ efficacy and enable faster emergency response times.
US Digital Designs’ EBITDA margins are accretive to Honeywell, and Honeywell is expected to achieve a return on investment of greater than 25 percent by the fifth year that US Digital Designs is part of Honeywell.