Nortek Inc. is acquiring 2Gig Technologies, possibly the fastest-growing home automation and home security manufacturer in recent history, for about $135 million.
2Gig will be folded into Nortek subsidiary Linear LLC, provider of home security, garage door openers, commercial access controls, PERS and other electronic systems. In addition to Linear, Nortek owns the Core Brands of home technology companies including Elan Home Systems, SpeakerCraft (also available at Home Controls here), Niles Audio, Xantech and Panamax/Furman.
The 2Gig acquisition comes about five months after 2Gig was acquired, along with its biggest customer Vivint, by the Blackstone Group for $2 billion.
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. The transaction is expected to close during the first half of 2013, subject to customary closing conditions.
Based in Lehi, Utah, near Salt Lake City, 2Gig has about 65 employees and sales of more than $100 million for 2012. Nortek, based in Providence, R.I., had net earnings of $22 million on sales of $1.7 billion for the nine months ended Sept. 29, 2012. Linear, based on Carlsbad, Calif., does not report its own financials.