Allegion, a security technology, solutions and services provider, signed a definitive agreement to acquire access control manufacturer ELATEC, including Elatec GmbH and other group entities, from Summit Partners for €330 million ($382 million). Allegion expects to fund the acquisition through a combination of cash on hand and borrowings under its existing revolving credit facility.
ELATEC is a manufacturer of security and access technology, specializing in RFID credentials and readers solutions designed in Germany and sold globally. ELATEC’s extensive portfolio of readers leverages their internally developed software stack and ensures compatibility with nearly 100 credential types, making the company a leader in interoperability, which aligns well with Allegion’s partner of choice strategy, according to the companies.
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ELATEC’s global diversified customer base spans non-residential markets, ranging from education, healthcare and hospitality to enterprise and industrial. The company expects ELATEC to generate approximately €60-€65 million in net sales in 2026 and be accretive to 2026 adjusted earnings per share (EPS).
“Adding ELATEC to the Allegion portfolio is a unique opportunity to scale our electronics business in attractive non-residential markets with technology that’s core to who we are as a pureplay security and access solutions provider,” said Allegion President and CEO John H. Stone. “ELATEC is a leader in their field and a natural extension of our own reader and credential product lines with high-single digit to low-double digit growth consistent with Allegion’s financial profile in electronics. This strategic acquisition builds on our legacy of innovation, market leadership and superior customer experiences and will result in added value for our shareholders.”
ELATEC will report into the Allegion International segment, led by Allegion Senior Vice President Tim Eckersley. Gerhard Burits, CEO of ELATEC, will join Allegion with the ELATEC business to support a smooth transition and accelerate growth.
“This will be a powerful combination of expertise, with ELATEC’s leadership in line-powered readers complementing Allegion’s proficiency in battery-operated solutions. Together, we will offer a comprehensive range of products that provide meaningful market differentiation and solidify our joint position as a partner of choice,” Burits stated.
This acquisition is expected to close in the third quarter of 2025, subject to customary closing conditions.
