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.