Santa Ana, CA — Universal Electronics Inc. (UEI), (NASDAQ:UEIC) is pleased to announce that it has entered into an agreement to acquire U.S.-based Ecolink Intelligent Technology, Inc.
“We are very excited to bring the Ecolink team under the UEI umbrella. The team at Ecolink has some of the industry’s leading experts in the wireless sensor market and a track record of bringing creative, innovative and high performing products to market. Ecolink’s expertise in wireless security and home automation technology will bring a new level of compatibility to the industry to enable sensors throughout the home to work together seamlessly,” said Paul Arling, UEI's Chairman and CEO.
According to Parks Associates, residential home security is leading the transition to the smart home. “The majority of sensors and control panels sold today can be accessed and remotely controlled with a mobile device. No other residential product can make that claim,” said Tom Kerber, Director Research, Parks Associates. “Additionally, over the past 4 years, cable and telco providers have successfully added home security and automation services to their offerings, gaining an estimated 14% share of professionally-monitored security systems in U.S. broadband households.”
“With over 25 years of experience as a technology and product supplier to the cable/telco industry, UEI, through this acquisition, is well positioned to supply these wireless solutions to its customers,” stated Tricia Parks, Chairman, Founder, and CEO of Parks Associates .
According to data from ABI Research, the global sensor and device market for home security and automation is expected to grow from $1.4 billion in 2015 to $4.0 billion in 2019, with growth forecasted across all three channels of distribution: pro-security; cable/telco and consumer/DIY. This acquisition allows UEI to extend its market reach into traditional home security and
consumer/DIY – channels that are actively served by Ecolink products and solutions today.
The purchase price for the acquisition of Ecolink assets will be approximately $12.4 million in cash plus incentive-based cash consideration to be paid over the next five years. Ecolink’s acquired assets include over 25 issued and pending patents, and other related intellectual property and assets used in its smart home, wireless security and home automation business.
UEI intends to operate the acquired business as a wholly-owned subsidiary and market the home security and automation products and services under Ecolink brands and trademarks, leveraging Ecolink’s many years of experience, expertise and innovation in the industry.
“We are excited to be joining the UEI team,” stated Michael Lamb, Ecolink’s President and CEO, “UEI’s leadership position in cable and telco, as well as their operational excellence will give our home security products the boost needed to achieve significant market penetration.”