Allegion to Boost Product Portfolio With the Acquisition of ELATEC

Allegion plc ALLE recently inked a definitive deal to acquire ELATEC, including Elatec GmbH and other group entities (ELATEC), from Summit Partners through one of its subsidiaries. The deal is valued at €330 million (approximately $379.1 million) on a cash and debt-free basis.Based in Germany, ELATEC is engaged in providing security and access technology globally. It specializes in RFID credentials and reader solutions. The company’s reader portfolio, built on its proprietary software, supports nearly 100 credential types.ALLE’s Acquisition RationaleThe latest buyout is in sync with Allegion’s policy of acquiring businesses to expand its market share and customer base. The inclusion of ELATEC’s expertise in RFID reader and credential solutions will enable ALLE to boost its global electronics portfolio in non-residential end markets such as education, healthcare, hospitality, enterprise and industrial. Also, ELATEC’s strong international presence will help Allegion to deepen its relationship with the channel partners.ELATEC will be incorporated into ALLE’s Allegion International segment and led by its senior vice president, Tim Eckersley. Subject to regulatory approvals and customary closing conditions, the acquisition is expected to close in the third quarter of 2025. Allegion expects ELATEC to generate net sales of approximately €60-€65 million (approximately $69-$75 million) in 2026 and contribute positively to the adjusted earnings per share in the same year.Acquisitions are an essential aspect of Allegion's growth strategy. The company is trying to improve its long-term results by focusing on strategic acquisitions and regular innovations. This month, ALLE acquired Novas to boost its door hardware portfolio. Novas has been incorporated into the Allegion International segment.In April 2025, ALLE acquired Trimco Hardware (Trimco), along with its brands and various assets, through one of its subsidiaries. The inclusion of Trimco’s expertise in specialty solutions, coupled with its strong innovation capabilities, enabled Allegion to boost its door and frame portfolio within the Allegion Americas segment. Allegion acquired Lemaar Pty Ltd (Lemaar) in March 2025. This acquisition boosted ALLE’s security and accessibility portfolio in Australia. The acquired company has been incorporated into the Allegion International segment. In February 2025, Allegion acquired Next Door Company, which expanded its doors and frames portfolio. Next Door has been incorporated into the Allegion Americas segment.Allegion’s Zacks Rank and Price PerformanceAllegion is benefiting from strength in the Allegion Americas segment, driven by an increase in demand for non-residential products across end markets like education, hospitality and retail. Growing awareness about the security and safety of people and infrastructure across the world is driving the International segment.ALLE currently carries a Zacks Rank #3 (Hold). In the year-to-date period, the stock has gained 5.1% compared with the industry’s 3.8% growth.Image Source: Zacks Investment ResearchHowever, the rising cost of sales due to higher material costs and increasing selling and administrative expenses poses a threat to ALLE’s bottom line.Stocks to ConsiderSome better-ranked companies are discussed below:Life360, Inc. LIF currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.LIF delivered a trailing four-quarter average earnings surprise of 425%. In the past 60 days, the Zacks Consensus Estimate for Life360’s 2025 earnings has increased 9.1%.Alarm.com Holdings, Inc. ALRM presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 15.7%.The Zacks Consensus Estimate for ALRM’s 2025 earnings has increased 1.3% in the past 60 days.Broadwind, Inc. BWEN presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 61.1%.In the past 60 days, the consensus estimate for BWEN’s 2025 earnings has increased 14.3%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadwind Energy, Inc. (BWEN): Free Stock Analysis Report Allegion PLC (ALLE): Free Stock Analysis Report Alarm.com Holdings, Inc. (ALRM): Free Stock Analysis Report Life360, Inc. (LIF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks