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Nortek to buy 2GIG for $135m

Deal includes five-year supply agreement with Vivint
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02/14/2013

PROVIDENCE, R.I.—Nortek, parent company of Linear, announced this morning that it will acquire 2GIG Technologies for $135 million.

Will Apple take bite out of the PERS market?

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Wednesday, June 22, 2016

Apple recently announced a new ‘SOS’ feature coming to the Apple Watch—similar to a PERS device.

If an Apple Watch user holds down the device’s side button, emergency services local to that user’s location will be notified, as well as emergency contacts.

I spoke with former Numera CEO, current Group VP of the Nortek Innovations & Incubation Foundry, about how the Nortek offerings compare to the announced features of the Apple Watch SOS. He said one particular differentiator for Nortek is "the advanced fall detection capabilities. In order to have highly reliable fall detection, you need to have something around your torso."

Smokoff noted the difference in battery life. The Apple Watch lasts about 18 hours and the Libris mPERS device lasts “about 2-and-a-half days on average,” he said.

There is a gap in price between the Apple Watch, which needs an iPhone to work, and the Libris mPERS device which stands alone and costs less than the Apple Watch by itself.

While I’ve heard of new and emerging markets for personal emergency devices—such as hikers, lone workers or for college campus safety—many of the PERS and mPERS companies I’ve spoken with point to the aging-in-place market as the market’s main demographic.

It seems to me that there are several reasons why the Apple Watch SOS feature wouldn’t break into the aging-in-place market. Firstly, both the Apple Watch and the user’s iPhone need to be charged and both devices need to be near each other.

Second, older PERS or mPERS users may not be as comfortable with technology and, therefore, less likely to own and operate an iPhone in conjunction with an Apple Watch.

Should people take notice of Apple’s entrance in the market? Will Apple take customers away from dealers in the PERS and mPERS space? If you have any thoughts, feel free to email me: sives@securitysystemsnews.com.

Nortek unveils technology think tank

Incubation team led by former Numera CEO Tim Smokoff
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06/15/2016

PROVIDENCE, R.I.—In conjunction with the recent acquisition of Nuiku, a natural language processing platform for use with home automation and other applications, Nortek has launched a technology incubation think tank—the Nortek Innovations & Incubation Foundry.

Nortek acquires voice recognition company Nuiku

Natural language platform will drive company’s home automation efforts
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06/01/2016

PROVIDENCE, R.I.—Nortek Inc., a global company with brands including 2GIG, NuTone and Elan for security and home automation applications, has acquired Nuiku, a natural language processing platform for use with home automation and other applications.

Numera releases combination life safety-PERS hub

Tim Smokoff: Users’ activity levels are passive and active
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04/04/2016

CARLSBAD, Calif.—Nortek Security and Control on March 31 announced its new Numera Home Safety Hub, an expanded way to monitor the activity levels of PERS users.

Numera expands EverThere offering

Users can create health alerts with info from connected devices
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01/15/2016

LAS VEGAS—EverThere, the activity-tracking platform attached to Numera’s Libris mPERS, can now include data from a variety of medical devices, Nortek announced during CES this year.

Numera releases activity tracking platform EverThere

Company’s acquisition by Nortek Security & Control adds backing for Numera
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09/30/2015

SEATTLE—Numera is rolling out EverThere, a new proactive activity tracking platform attached to its Libris mPERS, allowing users or family members to track activity levels, note trends and set alerts.

Will UTC buy Nortek?

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Wednesday, August 26, 2015

Will UTC buy Nortek?

The Wall Street Journal, citing unnamed sources, says it's in talks to do so for around $1.2 billion. I talked to some folks in the past few days who say the purchase, which may not make sense on the surface may indeed make sense. Other financial reports, such as the Motley Fool, concur.

Nortek is the parent company of well known access control, security and automation brands Linear, 2GIG and Go!Control. Those brands fall under the Nortek Security and Control division. It's  a global diversified company with a current market cap of $1.3 billion and an enterprise value of $2.7 billion, and the bulk of Nortek’s business falls outside security, it also does HVAC, air management and AV.

Based in Hartford, Conn., United Technologies Corporation is a global $81 billion company that makes building systems and aerospace industry products. Its segments include:  Otis elevators; Pratt & Whitney;  UTC Aerospace Systems and UTC Climate, Controls & Security, which in addition to security does HVAC and refrigeration. UTC owns access control provider Lenel (as one person I spoke to called it--the darling of the UTC security portfolio) and intrusion and smart home provider Interlogix.

UTC bought GE Security in 2010. Here's a Q&A we did at the time.  Two years later, UTC sold its fire and security integration business (Red Hawk) to a private equity group.

UTC recently sold its Sikorsky helicopter division for $9 billion, so they've got money to invest.

Neither Nortek nor UTC are commenting, but plenty of folks outside of the businesses are talking about it.

People I spoke to said that UTC went looking for Nortek—Nortek was not actively looking for a buyer. They don’t believe that it is the security part of the business that is necessarily driving the deal—but rather, the fact that Nortek’s lines of businesses line up with UTC’s Climate Controls and Security division, though there would definitely be some overlap with 2GIG and Interlogix.

As The Motley Fool explains it, what's driving the deal is that the numbers make sense.

From the report: “…Nortek could be a pretty nice bargain. Bought for today's $1.4 billion valuation, Nortek would cost UTC less than 0.6 times Nortek's annual sales. UTC stock, in contrast, costs more than twice as much, at 1.3 times sales.
Meanwhile, although it earns no net profits, Nortek does earn operating profits (i.e., it would have been profitable but for the cost of interest, taxes, and various one-time items). In fact, at its current operating profit margin, Nortek earned about $123 million in operating profit on its revenues last year. If, after buying Nortek, UTC is able to improve the latter's operations so as to extract something like the 16.5% margin that UTC's own Climate, Controls, and Security business achieves, then this would work out to $413 million in annual profits from UTC's new subsidiary -- $290 million better than Nortek made on its own.”

Will the deal happen? I have no idea. But I guess I need to be prepared for another ISC West booth visit where I have to learn, again, how the UTC security business has been realigned.

 

Nortek Security & Control buys Numera for mPERS

With acquisition, company will be on forefront of ‘aging in place,’ president says
 - 
07/01/2015

CARLSBAD, Calif.—Nortek Security & Control has purchased Numera Inc. for a reported $12 million.

Got design in mind?

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Wednesday, May 20, 2015

You’ve heard the old real estate sales mantra: “Location, location, location.” For many in the residential security industry today, the new mantra is “Design, design, design.” 

At ISC West this year I met with a long list of security pros, from manufacturers to dealers to providers, most of whom proclaimed that on top of tech advancements their equipment was made “to look good.” 

They’re right. Their designs are looking good.

Panels, switches, sensors and more are sleek with a European-design feel. They will be less than obtrusive when mounted on a wall. No more huge black or brown boxes in the front foyer—these blend in. 

The equipment, mostly white and thin, reminded me of the first, very early, iBook I owned. So pretty and neat, small and clean. That was a number of years ago, and my iBook eventually met its demise, but I still remember it fondly, mostly for how it looked in comparison to other bulky laptops of the day. 

“This is the year of industrial design,” Avi Rosenthal, board member of the Z-Wave Alliance and VP of security and control for Nortek, told me early on at the Las Vegas show.  His comments resonated as I visited other booths after that. 

For homeowners, form is equally as important as function for all products, he and others said.

“It’s the ‘wife-acceptance’ factor. She’s the one who decorates, so the devices must look cool on the wall,” Rosenthal said.

Who wants something big, dark and ugly hitched to the wall just inside their front door? Not me. Neither did former ADT exec Christopher Carney when deciding on the look of his new Abode home resi system.

The pursuit of aesthecially pleasing design extended into the ISC West booths themselves this year. Honeywell, for example, had all of its products—from fire to resi—on interactive display in one big, nicely appointed space—think of an Apple store. 

Nortek had a new, interactive booth, too, with each of its sister companies representing myriad slick-looking products. 

How big a deal is this whole aesthetics thing to you and your companies? Are you feeling the need to adapt to the latest trends in home décor? Are you hearing this from your customers? 

If your products are less than pretty, you might want to consider how good design might add to your bottom line.

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