ATLANTA – December 13, 2021 – Honeywell announced today that it has agreed to acquire US Digital Designs, Inc., a company based in Tempe, Ariz., for a buy multiple of ~ 14X EBITDA in an all-cash transaction. The company provides alerting and dispatch communication solutions, which improve the efficiency of first responders and enable faster emergency response times.
US Digital Designs’ EBITDA margins are accretive for Honeywell, and Honeywell is expected to achieve a return on investment of over 25% by the fifth year that US Digital Designs is part of Honeywell.
The acquisition will become part of Honeywell’s fire safety and connected life safety systems business and expand Honeywell’s portfolio of solutions for public safety communications, providing first responders with better situational awareness of emergencies. of the building and improved personal safety. When combined with Honeywell’s solutions, US Digital Designs offerings will securely transmit detailed emergency data, such as type of hazard, severity, and location in the affected building, all before even the first responders do not arrive.
Key points:
- The acquisition has a purchase multiple of approximately 14X EBITDA; Expected to achieve over 25% ROI by fifth year US Digital Designs is part of Honeywell
- Combined offerings will improve communications with first responders, eliminate manual processes and enable faster emergency response times
- A suite of hardware and software solutions will provide first responders with more accurate information, allowing better situational awareness even before arriving on site
- Acquisition expands Honeywell’s already large portfolio of products, which help customers achieve their environmental, social and governance (ESG) goals
The existing communication infrastructure between fire stations and emergency centers often uses legacy manual technology, which slows response times and affects the accuracy of information transmitted. In contrast, solutions from US Digital Designs instantly connect dispatch centers to fire stations, improving both the quality of information shared and the time it takes for first responders to arrive in an emergency. It is estimated that in the coming years, in accordance with current federal legislation to improve the 911 system, several billion will be invested in the United States alone to upgrade the existing alarm infrastructure to provide alerts. faster and more accurate alarms to first responders.
“The future of public safety rests on technology. We integrate information throughout the fire alarm transmission process – from the fire panel to first responders – and provide uninterrupted communications to first responders, ”said Doug Wright, President and CEO, Honeywell Building Technologies. “Integrating the alerting capabilities of US Digital Designs fire stations with Honeywell’s connected life safety services will allow us to eliminate manual processes and dramatically reduce response time. Helping first responders get to the scene faster potentially means saving more lives and providing a higher level of asset protection.
US Digital Designs’ suite of hardware and software solutions, which includes dispatch communication aids and mobile alerting applications, provide situational awareness and help reduce response times. US Digital Designs also offers solutions that wake up first responders with soft start LED lighting and less disruptive audio alerts.
The offerings complement Honeywell’s suite of solutions that help clients meet their environmental, social and governance (ESG) goals, including improving the safety of first responders.
“We are excited to join the Honeywell team and support their efforts to add further automation and digitization to the public safety communication process. Reduced response times mean we can protect more people, buildings and their assets, ”said Todd Smith, president and chief electrical engineer, US Digital Designs.
“Honeywell’s scale, global reach and business relationships will allow even more fire stations to access our solutions, helping to create safer communities,” said Dominic Magnoni, vice president, engineer. Chief Mechanical Officer and COO, US Digital Designs.
With this acquisition, Honeywell will further expand its public safety offerings designed to improve the safety of first responders and building occupants. These offerings include the Bidirectional Amplifiers (BDA) from Fiplex which provide continuous and critical radio coverage in buildings. Honeywell acquired a controlling interest in Fiplex Communications, Inc., in March 2021.
This is the fourth acquisition announced by Honeywell in 2021, as part of the company’s disciplined strategy to deploy capital to high-yielding acquisitions, which will drive future growth.
There is no change in Honeywell’s financial forecast as a result of the acquisition. The acquisition is expected to close in the first quarter of 2022 and is subject to certain regulatory approvals and other customary closing conditions.
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About American Digital Designs
Founded in 2000, US Digital Designs Inc. (USDD) provides essential products and services that enable dispatch centers and fire stations to reduce dispatch call processing times and effectively respond to local emergencies. The company provides a suite of hardware and software solutions, including dispatch communication systems, illuminated loudspeakers, message boards, and mobile monitoring and alerting tools to more than 2,000 fire stations.
About Honeywell Building Technologies
Honeywell Construction Technologies (HBT) transforms the way each building works to help improve the quality of life. We are a leading building control company with operations in over 75 countries supported by a global network of distribution partners. Commercial building owners and operators use our hardware, software and analytics to help create safe, efficient and productive facilities. Our solutions and services are used in more than 10 million buildings around the world.
Honeywell (www.honeywell.com) is a Fortune 100 technology company that provides industry-specific solutions that include aerospace products and services; control technologies for buildings and industry; and performance materials globally. Our technologies help planes, buildings, manufacturing plants, supply chains and workers become more connected to make our world smarter, safer and more sustainable. For more Honeywell news and information, please visit www.honeywell.com/newsroom.
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