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By PBN Staff
PROVIDENCE – Nortek Inc., a residential and commercial ventilation maker, has signed a definitive agreement to acquire Lehi, Utah-based 2Gig Technologies Inc., Nortek announced Thursday.
Nortek will purchase 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.
“Acquiring 2Gig will position our Technology Solutions business as one of the world’s top-tier hardware developers and manufacturers in the rapidly growing residential security and home automation markets,” Michael J. Clarke, Nortek CEO, said in a statement. “The transaction allows us to better provide long-term support to Vivint and other 2Gig customers. We look forward to welcoming 2Gig’s talented employee team into the Nortek family of companies.”
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.
“Joining forces with 2Gig will provide the other companies in our Technology Solutions Group with a range of exciting cross-selling opportunities,” Sean Burke, group president of the Technology Solutions segment, said in a statement.
“2Gig offers products such as home thermostats, alarms and wireless carbon monoxide detectors that can be leveraged by these Nortek brands to grow their business with existing customer accounts. At the same time, these brands offer products that can expand and enhance the 2Gig home automation platform, potentially opening doors to new market opportunities,” added Burke.
The transaction is expected to close during the first half of 2013 and is subject to customary closing conditions.