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Allegion to Boost Product Portfolio With the Acquisition of ELATEC
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Key Takeaways
ALLE will acquire ELATEC for $379.1 million to strengthen its global access technology capabilities.
ELATEC adds RFID expertise and supports nearly 100 credential types in global markets.
The deal supports ALLE's growth via acquisitions, enhancing non-residential electronics offerings.
Allegion plc (ALLE - Free Report) recently inked a definitive deal to acquire ELATEC, including Elatec GmbH and other group entities (ELATEC), from Summit Partners through one of its subsidiaries. The deal is valued at €330 million (approximately $379.1 million) on a cash and debt-free basis.
Based in Germany, ELATEC is engaged in providing security and access technology globally. It specializes in RFID credentials and reader solutions. The company’s reader portfolio, built on its proprietary software, supports nearly 100 credential types.
ALLE’s Acquisition Rationale
The latest buyout is in sync with Allegion’s policy of acquiring businesses to expand its market share and customer base. The inclusion of ELATEC’s expertise in RFID reader and credential solutions will enable ALLE to boost its global electronics portfolio in non-residential end markets such as education, healthcare, hospitality, enterprise and industrial. Also, ELATEC’s strong international presence will help Allegion to deepen its relationship with the channel partners.
ELATEC will be incorporated into ALLE’s Allegion International segment and led by its senior vice president, Tim Eckersley. Subject to regulatory approvals and customary closing conditions, the acquisition is expected to close in the third quarter of 2025. Allegion expects ELATEC to generate net sales of approximately €60-€65 million (approximately $69-$75 million) in 2026 and contribute positively to the adjusted earnings per share in the same year.
Acquisitions are an essential aspect of Allegion's growth strategy. The company is trying to improve its long-term results by focusing on strategic acquisitions and regular innovations. This month, ALLE acquired Novas to boost its door hardware portfolio. Novas has been incorporated into the Allegion International segment.
In April 2025, ALLE acquired Trimco Hardware (Trimco), along with its brands and various assets, through one of its subsidiaries. The inclusion of Trimco’s expertise in specialty solutions, coupled with its strong innovation capabilities, enabled Allegion to boost its door and frame portfolio within the Allegion Americas segment.
Allegion acquired Lemaar Pty Ltd (Lemaar) in March 2025. This acquisition boosted ALLE’s security and accessibility portfolio in Australia. The acquired company has been incorporated into the Allegion International segment. In February 2025, Allegion acquired Next Door Company, which expanded its doors and frames portfolio. Next Door has been incorporated into the Allegion Americas segment.
Allegion’s Zacks Rank and Price Performance
Allegion is benefiting from strength in the Allegion Americas segment, driven by an increase in demand for non-residential products across end markets like education, hospitality and retail. Growing awareness about the security and safety of people and infrastructure across the world is driving the International segment.
ALLE currently carries a Zacks Rank #3 (Hold). In the year-to-date period, the stock has gained 5.1% compared with the industry’s 3.8% growth.
Image Source: Zacks Investment Research
However, the rising cost of sales due to higher material costs and increasing selling and administrative expenses poses a threat to ALLE’s bottom line.
LIF delivered a trailing four-quarter average earnings surprise of 425%. In the past 60 days, the Zacks Consensus Estimate for Life360’s 2025 earnings has increased 9.1%.
Alarm.com Holdings, Inc. (ALRM - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 15.7%.
The Zacks Consensus Estimate for ALRM’s 2025 earnings has increased 1.3% in the past 60 days.
Broadwind, Inc. (BWEN - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 61.1%.
In the past 60 days, the consensus estimate for BWEN’s 2025 earnings has increased 14.3%.
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Allegion to Boost Product Portfolio With the Acquisition of ELATEC
Key Takeaways
Allegion plc (ALLE - Free Report) recently inked a definitive deal to acquire ELATEC, including Elatec GmbH and other group entities (ELATEC), from Summit Partners through one of its subsidiaries. The deal is valued at €330 million (approximately $379.1 million) on a cash and debt-free basis.
Based in Germany, ELATEC is engaged in providing security and access technology globally. It specializes in RFID credentials and reader solutions. The company’s reader portfolio, built on its proprietary software, supports nearly 100 credential types.
ALLE’s Acquisition Rationale
The latest buyout is in sync with Allegion’s policy of acquiring businesses to expand its market share and customer base. The inclusion of ELATEC’s expertise in RFID reader and credential solutions will enable ALLE to boost its global electronics portfolio in non-residential end markets such as education, healthcare, hospitality, enterprise and industrial. Also, ELATEC’s strong international presence will help Allegion to deepen its relationship with the channel partners.
ELATEC will be incorporated into ALLE’s Allegion International segment and led by its senior vice president, Tim Eckersley. Subject to regulatory approvals and customary closing conditions, the acquisition is expected to close in the third quarter of 2025. Allegion expects ELATEC to generate net sales of approximately €60-€65 million (approximately $69-$75 million) in 2026 and contribute positively to the adjusted earnings per share in the same year.
Acquisitions are an essential aspect of Allegion's growth strategy. The company is trying to improve its long-term results by focusing on strategic acquisitions and regular innovations. This month, ALLE acquired Novas to boost its door hardware portfolio. Novas has been incorporated into the Allegion International segment.
In April 2025, ALLE acquired Trimco Hardware (Trimco), along with its brands and various assets, through one of its subsidiaries. The inclusion of Trimco’s expertise in specialty solutions, coupled with its strong innovation capabilities, enabled Allegion to boost its door and frame portfolio within the Allegion Americas segment.
Allegion acquired Lemaar Pty Ltd (Lemaar) in March 2025. This acquisition boosted ALLE’s security and accessibility portfolio in Australia. The acquired company has been incorporated into the Allegion International segment. In February 2025, Allegion acquired Next Door Company, which expanded its doors and frames portfolio. Next Door has been incorporated into the Allegion Americas segment.
Allegion’s Zacks Rank and Price Performance
Allegion is benefiting from strength in the Allegion Americas segment, driven by an increase in demand for non-residential products across end markets like education, hospitality and retail. Growing awareness about the security and safety of people and infrastructure across the world is driving the International segment.
ALLE currently carries a Zacks Rank #3 (Hold). In the year-to-date period, the stock has gained 5.1% compared with the industry’s 3.8% growth.
Image Source: Zacks Investment Research
However, the rising cost of sales due to higher material costs and increasing selling and administrative expenses poses a threat to ALLE’s bottom line.
Stocks to Consider
Some better-ranked companies are discussed below:
Life360, Inc. (LIF - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
LIF delivered a trailing four-quarter average earnings surprise of 425%. In the past 60 days, the Zacks Consensus Estimate for Life360’s 2025 earnings has increased 9.1%.
Alarm.com Holdings, Inc. (ALRM - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 15.7%.
The Zacks Consensus Estimate for ALRM’s 2025 earnings has increased 1.3% in the past 60 days.
Broadwind, Inc. (BWEN - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 61.1%.
In the past 60 days, the consensus estimate for BWEN’s 2025 earnings has increased 14.3%.