ASSA ABLOY's Strategic Acquisitions: Bolstering Market Share and Growth Opportunities

In a strategic move to strengthen its market position and expand its offerings, ASSA ABLOY, the global leader in access solutions, has announced the acquisition of 3millID Corporation and Third Millennium Systems Ltd. These acquisitions, set to close during the first quarter of 2025, will reinforce ASSA ABLOY's current offering within physical access control and provide complementary growth opportunities in the US and UK markets.

3millID, headquartered in Highlands Ranch, Colorado, is a solutions provider of proprietary access control readers and technology-enabled products to enterprise end customers in North America. By acquiring 3millID, ASSA ABLOY will enhance its presence in the US market and reinforce its offering within physical access control. Nico Delvaux, President and CEO of ASSA ABLOY, expressed his enthusiasm for the acquisition, stating, "I am very pleased to welcome 3millID... exciting technological additions that will reinforce our current offering within physical access control, and provide complementary growth opportunities."

Third Millennium, based in Wales, UK, is a provider of access control solutions and software to enterprise and government end customers in the UK and Europe. The acquisition of Third Millennium will enable ASSA ABLOY to expand its reach in the UK and Europe, increasing customer choice and relevance within its portfolio. Björn Lidefelt, EVP and Head of HID, commented on the acquisition, "Welcoming 3millID and Third Millennium into the HID family demonstrates our continued investment in core physical access control technologies. These acquisitions bring new opportunities to increase customer choice and relevance within our portfolio and will enhance our presence outside of the United States."

The acquisition of 3millID and Third Millennium is expected to be immediately accretive to earnings per share (EPS), indicating that it is a stable and predictable investment for ASSA ABLOY. The two companies have a total of some 40 employees and will be part of HID's Physical Access Control Solutions Business Area. Sales for 2023 amounted to about MUSD 21 (approx. MSEK 220) with a strong EBIT margin, further solidifying the strategic value of these acquisitions.

In conclusion, ASSA ABLOY's acquisition of 3millID and Third Millennium Systems is a strategic move that aligns with the company's long-term growth strategy. By reinforcing its current offering within physical access control and expanding its customer base, ASSA ABLOY is well-positioned to capitalize on the growing demand for access control solutions in the US and UK markets. As the global leader in access solutions, ASSA ABLOY continues to demonstrate its commitment to innovation and growth through strategic acquisitions and investments.