Leviton acquires OnQ Technologies
HARRISBURG, Pa. - In a move designed to grab a larger piece of the market share in the structured wiring field, Leviton Manufacturing Co. has acquired OnQ Technologies.
Ian Hendler, director of channel development for Leviton, said that Leviton looked to acquire OnQ because the core bases of the two companies Ã¢â‚¬Å“dove-tailed well together.Ã¢â‚¬Â
OnQÃ¢â‚¬â„¢s history of product development also was a large motivation behind the transaction.
Ã¢â‚¬Å“They were quite quick at getting quite a few new products to market, virtually every quarter,Ã¢â‚¬Â Hen-dler said.
Ã¢â‚¬Å“We felt if we could get the sprit of that product innovation linked up with our manufacturing, that would certainly be a winning combination.Ã¢â‚¬Â
According to OnQ spokesperson Nicole Kimmick, the new company, which will be known as LevitonOnQ, will capture 55 percent of the structured wiring marketplace after the two companies are joined.
Ã¢â‚¬Å“The two companies coming together really promote growth and stability in the marketplace which is something that builders are looking for,Ã¢â‚¬Â said Kimmick.
Kimmick said that Leviton-OnQÃ¢â‚¬â„¢s primary focus would be residential installations, linking such systems as home security, audio, video and data.
Analyst Joseph Freeman said that the acquisition is a logical step for both companies.
After the stock market crash of 2000, Freeman said the home automation industry went into a decline after a period of substantial growth.
According to Freeman, Levi-ton saw the home automation market as one that would allow for the most growth in the coming years.
Once Leviton identified the market it wanted to concentrate on, Freeman said it was logical for Leviton to look to acquire OnQ, since it was in the number one position in the structured wiring market, Ã¢â‚¬Å“which is the area that appeals mostly to builders.Ã¢â‚¬Â
Ã¢â‚¬Å“Since Leviton was already in the connector business, this was kind of a natural acquisition for them,Ã¢â‚¬Â said Freeman. Ã¢â‚¬Å“What theyÃ¢â‚¬â„¢ve done is expand the connector business into the home automation business, and now they have more of an offering for builders and for contractors to whom they sell.Ã¢â‚¬Â
Kimmick said the two companies would continue to operate in parallel until the transaction is finalized, which should take about four months.