2GIG Technologies to Sell for $135 Million
Nortek Inc., Providence, R.I., a global diversified company with technology-driven products and solutions for residential and commercial applications, signed a definitive agreement to acquire 2GIG Technologies Inc., a privately held company based in Lehi, Utah, from APX Group. 2GIG is a designer and supplier of residential security and home automation systems. Developed with the assistance of Nortek’s Linear® business, 2GIG’s Go!Control™ touchscreen panel is a self-contained, all-in-one home security and automation control panel. 2GIG also provides wireless interactive home security services and a wide range of peripheral hardware devices and system components for home security and automation solutions.
Under the terms of the agreement, Nortek will pay approximately $135 million for all of the outstanding common stock of 2GIG on a cash- and debt-free basis. The acquisition will be financed with a combination of cash on hand and borrowings under Nortek’s asset-based credit facility. Nortek’s Technology Solutions business is a major manufacturing partner to 2GIG, which is a supplier to Vivint™, currently ranked as the third-largest U.S. company based on RMR in the SDM 100. Nortek’s acquisition agreement with 2GIG includes a five-year supply agreement with Vivint.
The Blackstone Group acquired Vivint, along with 2GIG in a $2 billion transaction last year.
“Acquiring 2GIG will position our Technology Solutions business as one of the world’s top-tier hardware developers and manufacturers in the rapidly growing residential security and home automation markets,” said Michael Clarke, Nortek’s chief executive officer. “The transaction allows us to better provide long-term support to Vivint and other 2GIG customers. We look forward to welcoming 2GIG’s talented employee team into the Nortek family of companies.”
Sean Burke, group president of Nortek’s Technology Solutions segment, added, “Joining forces with 2GIG will provide the other companies in our Technology Solutions Group with a range of exciting cross-selling opportunities.