By Emily Greenhalgh
PBN Web Editor
PROVIDENCE – Nortek Inc., a residential and commercial ventilation maker, has completed the acquisition of Lehi, Utah-based 2Gig Technologies Inc.
Nortek purchased the privately held company from APX Group Inc. for roughly $135 million. The acquisition will be financed with a combination of cash on hand and borrowings under Nortek’s asset-based credit facility, according to a release.
“2GIG’s addition to the Nortek family of companies positions our Technology Solutions segment as one of the world’s top-tier hardware developers and manufacturers in the growing residential security and home automation markets,” said Nortek President and CEO Michael J. Clarke said in prepared remarks. “We are pleased to have completed the 2GIG transaction as planned, as it allows us to better support Vivint and other 2GIG customers, while also providing our Technology Solutions companies with new cross-selling opportunities.”
In a previous Nortek release, 2Gig was described as an “innovative designer and supplier of residential security and home automation systems,” and Nortek’s Technology Solutions business is a major manufacturing partner to 2Gig. According to a release, 2Gig is a supplier to home automation services company Vivint and the acquisition agreement with 2Gig includes a five-year supply agreement with Vivint.
The closing follows the satisfaction of all customary closing conditions, including approval pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, said a Nortek release.