Allegion Boosts Product Portfolio With the Acquisition of ELATEC

Allegion plc ALLE recently completed the acquisition of ELATEC, including Elatec GmbH and other group entities (ELATEC), from Summit Partners through one of its subsidiaries for €330 million (approximately $379.1 million) on a cash and debt-free basis.

Headquartered in Germany, ELATEC provides security and access technology worldwide. 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 Rationale

The latest buyout is in sync with ALLE’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 Allegion to expand its global electronics portfolio in non-residential markets such as education, healthcare, hospitality, enterprise and industrial. Also, ELATEC’s strong global footprint will help ALLE to strengthen its collaboration with the channel partners.

ELATEC will be incorporated into the Allegion International segment and led by its senior vice president, Tim Eckersley. The company expects ELATEC to generate net sales of approximately €60-€65 million (approximately $69-$75 million) in 2026 and positively impact the adjusted earnings per share in the same year.

Other Notable Acquisitions of ALLE

In June 2025, ALLE acquired Novas to boost its door hardware portfolio. Novas has been incorporated into the Allegion International segment. In April 2025, the company 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. 

ALLE acquired Lemaar Pty Ltd (Lemaar) in March 2025. This acquisition boosted its 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 Performance

Allegion 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 #2 (Buy). In the year-to-date period, the stock has gained 13% compared with the industry’s 7.7% growth.

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This article originally published on Zacks Investment Research (zacks.com).

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