Assa Abloy acquires another physical access control provider

Assa Abloy has acquired Austria-headquartered physical access control systems maker Skidata to expand its portfolio and global presence.

Skidata’s portfolio includes both hardware and software for large venues like stadiums, and includes biometrics as well as NFC scanning among 100 types of supported ticket media. The company will be integrated into the Pedestrian business segment within Assa Abloy’s Entrance Systems Division, according to the announcement.

A report from Genetec earlier this year suggested physical access control deployments are shifting to biometrics and other new technologies at an accelerating pace.

Assa Abloy President and CEO Nico Delvaux says the deal fits with its strategy of “adding complementary products and solutions to our core business” to grow its presence in mature markets.

Physical access systems from Skidata were integrated with facial recognition from STC at Russia’s VTB Arena back in 2020.

Skidata reported revenues of 305 million euros (approximately US$332 million) in fiscal 2023, and Assa says the deal will have a small dilutive effect on its earnings per share.

The acquisition is expected to close in the third quarter of 2024, subject to the usual conditions. The terms of the agreement were not disclosed.

Inorganic growth continues

Acquisitions have been driving Assa Abloy’s growth lately, IPVM reports, amid a slowdown in HID Global’s physical access control business. The slowdown is related to supply-chain problems during the Covid pandemic that caused a backlog for its products.

Assa Abloy reports organic growth of negative 1 percent in the second quarter of its fiscal 2024 year, but inorganic growth of 11 percent. Second quarter sales for Assa Abloy totaled just under 38 billion Swedish kronor ($3.54 billion), and net income was SEK 3.9 billion ($360 million).

Delvaux notes in the earnings announcement that the company made 24 acquisitions in 2023, and has made 11 in the first half of 2024.

One of the acquisitions, HHI, is expected to deliver $100 million in “synergies.”

Article Topics

acquisitions  |  Assa Abloy  |  biometrics  |  financial results  |  HID  |  Skidata  |  stocks