IR wraps up its IAS deal

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Wednesday, October 1, 2003

PARSIPANNY, N.J. - Ingersoll-Rand wrapped up its acquisition of systems integrator Integrated Access Systems and its manufacturing arm Geoffrey Industries at the end of August, two deals that bring added strength to its security business.

Company officials at Ingersoll-Rand declined to release how much they paid for IAS, but expect it to increase its systems integration business from $60 million to $90 million next year.

The plan is for IAS to become part of Electronic Technologies Corp., a Dover Plains, N.Y.-based systems integrator Ingersoll-Rand bought last year, and take on the ETC name. Together, the two companies operate 37 offices across the country, with two more offices to be added in the next few months. (See related story)

“Ingersoll-Rand is looking for us to grow and the only way we can grow to meet their potential is through additional acquisitions,” said Scott Deininger, senior vice president of sales and technology for ETC.

Deininger said there is little overlap between ETC and IAS. While both ETC and IAS provide project management and sell security systems, IAS subbed out much of the installation work, such as running cable and mounting boxes.

“They’re much more of what we consider an enterprise type of company, more of a longer time sale,” said Deininger.

The benefits are apparent on the systems integration front, with additional expertise and more geographic coverage, said James J. Scott, president of IR Security & Safety Solutions. “IAS brings some linkage to some important customers and their service to national accounts,” said Scott. “It just complements the existing ETC structure. In some cases, it makes us stronger, in other cases it expands our coverage in certain geographic areas.”

Those markets for IAS include Chicago, Parsipanny, N.J., Bensalem, Pa., Brooklyn, N.Y., Golden Valley, Minn., Glastonbury, Conn., and Quincy, Mass. Deininger said it was too early to say whether some consolidation of offices between IAS and ETC may happen.

For Ingersoll-Rand, the addition of Geoffrey Industries on the manufacturing front is equally as important. Scott said Geoffrey Industries’ access control systems and video technology will integrate well with its Interflex System. “It benefits both the expansion of our basket of products and software offering,” said Scott.

Scott said Ingersoll-Rand plans to look for additional opportunities in the market that will bring better solutions, products and technology to its customers.