Assa Abloy Acquires August

By: IPVM Team, Published on Oct 25, 2017

The mega access control manufacturer, Assa Abbloy, has acquired [link no longer available] one of the most well funded access control startups, smart lock manufacturer August.

This comes just months after August raised $25 million from VC firms.

Inside, we analyze the acquisition, looking at revenue, market valuation, potential fit with Assa Abbloy and how this might impact Assa Abloy's presence in the consumer/smart home market where the door controls giant has generally been weak. 

*** **** ****** ******* manufacturer, **** ******, *** acquired [**** ** ****** available] *** ** *** most **** ****** ****** control ********, ***** **** manufacturer ******.

**** ***** **** ****** after ****** ****** $** million **** ** *****.

******, ** ******* *** acquisition, ******* ** *******, market *********, ********* *** with **** ****** *** how **** ***** ****** Assa *****'* ******** ** the ********/***** **** ****** where *** **** ******** giant *** ********* **** weak. 

[***************]

August ***********

**** *****'* ****** ********* [link ** ****** *********] ******** few ******* ** *** terms. ** ******** *** given ** *** *****, ****** it ****** **** *** acquisition **** ****** **** Abloy's ********, ****** *** to ****** ***** ************, common *** *******-****** ******** at ***** *****. 

**** ***** ********** *** acquisition's ******* ** ***** residential ********:

****** **** *********** *** residential ***** **** ******** with ************* ***** *****, expansion **** ***** ********* and ************* ********* *** home ********

*** *********** ******** ** refers ** ***** ********* be Yale, which ****** *** ******** ** **** ***** in ****, *** ***** **** has * ***** **** offering, ** *** *** had **** ******* ** the *** ******* ***** August *** **** * strong ********** ** ***** national ******.

*** *********** ** ******** to ***** ****** *** end ** ****, ******* approvals, ***** ** ** not ********** ********* *** deal. 

August ******* *********

** ******** ****** **** ******** **** be in *** $** - $*** USD *****. ** ***** release, **** ***** ****** ******'* 2018 ******* *********** ** ****** $60M. ***** **** ****** *** sound **********, ** ********* from *** **** **** August's ******* **** *******, which ***** ** **** easier ** ******* **** 3 ******** ********, ** not *********. ******* ** ****, ****** ******** 300% ****** ********, ***** if **** ***** *** 2017 ******* ************* ****. 

Factors ********* *********

** ******** **** ***** **** * few ******* ******* *** ******. August *** *** ***** **** Silicon ****** ********* ***** look ***, *** ***** preference ** ********* ** ride ****** *** *** huge *******, ******* ** just ** *** "**** bets", ****** ** ******** they ***** **** **** off ****** *** ******** less. The ****** $*** ******* ***** ********* *** ******* *** enough **** ** ******* operations *** * *****. Additionally, ****** *** ********** likelihood *** ***** ******, as *********/*** ******** ******** to **** ********* *** acceptance **** *** ******, and theirs products **** **** **** reviewed *** ************* ******. 

August **********

****** *** ** ***** entrant **** *** ******** smart **** ******, **** a ****** ******** ** fit **** * *********** deadbolt **** * ***** knob, * **** ****** that **** ** **** for ********* ** *** smart **** ************ ** their ******** **** ***** without ****** ** **** out **********, ****** ****, etc.

***** ** *** *** tested *** ****** ****, online ******** *** ********* positive ** ********** *******, *** ******* ********** review ***** (*.*.: *-********** ***).

*** ******* *** ************* ***** **** ****** *** *** [**** ** longer *********], ***** ***** brands *** *********, ******** ***** growth, ****** ***********, *** total *********.

Competitive ********

******'* ***** *** ***** referenced ********* ***** **** offerings ************** *******, **** ***** well-known ****** ** *** consumer **** ******. ***** smart **** ******** **** ********* **** *********, ** ** the **** ** ****, ****** **********. **** made ****** *** ** the *** ****** ***** lock ********* *** ******* part ** * ***** organization.

August ********, **** ** ******

********* ** ********** **** Assa *****, ****** **** continue ** ******* ***** its *********** *****, **** the *** ********* ** ******* of *** ****** ********/******* after *** ***********.

Expands **** ***** ******** ********

****** ***** **** ***** * strong ******** ** *** consumer/DIY *****, ***** **** have *** ****** ********. Their ***** **** ******** currently **** ***** ****, ***** itself *** ******** ** ****, **** **** **** oriented ** ************ **********. **** Abloy **** **** **** an ******** ** *** video ******** ****** **********'* ****** ************** **** ********. ** expect ****** ** ****** consumer-focused, *** *** ****** part ** **** *****'* commercial *********, ****** **** will ****** ****** **** of **** *****'* ********* to ***** **** *******, opening ** *** ******* for ******.

 

Downside *** ******

**** *** **** ******, August **** ** **** being * *** ******* Valley ******* ** * growing *****, ** ******** the ******** ******** **** of ** $** ****** conglomerate. ************ *** ***** disruptive, and *** ** **** so **** *** *********** target, *** *** ********, have ******* *********** ** **** and *******. ********* ** August *** ****** *** a ******* ******* *** wind ** ********** ******** becoming **** ** * very ***** ************, ***** could **** ** *** ****** leaving *** *******, ****** the ******* *********** ** August **** **** ***** more *********.

Outlook *** *** ********* ********

***** *** ******* ***** for ******** ******** ** growing ****, **** ******* this ** ** **** more ********** *** *** smartlocks ************.

***** * **** ** activity **** ******** *** beginnings ** *** ********* like *********************,*****, *****, ****, *** Otto ***** ******, *** startup ***** *** ********** has ******* *** ** now ******** ** ************ growth *** ******* ** M&A ****** **** *** brands.

Impact ** ***** ****/**** ******* *******

****** *** *** ** the *** ****** *********** smart **** ******** **** made ***** *** * company **** **** ***** to ***. **** *********** helps ******** *** ***** lock ****** ** *******, and *** ***** **** the *** *** ***** startups, ****** ** **** does **** ** *** startups ** ***** ****** relatively ***, ***** ** the ******* ******** *****.

**** *****'* ******** ******** in *** ***/*********** ****** may **** ***** ****** of ******** ******** ****, or ***** ******* *********** in ********, ****** ** which ***** ******* ********* and *********** **** ***** the ******** ** ***** locks.

**** ***** ***** ******'* upcoming ***** ******** ** a ****** **** ********** their ****** ** ******* the *******. ** *** August ***** ******** ** successful **** ***** **** to ******* ** ******* buying ********* **** ****, *** has ****** ~$*** ******* ** funding, ** *******, ******* *** ********** in *** ***** ******** segment ** ******* **** August/Assa *****.

** ******'* ***** ******** does *** **** ** to ************, ** ** possible **** ***** ***** seek *** ** *********** in **** ******* ** well.

*******, ** ***** ****** to *** **** ************* of ***** ****, ***** doorbell, *********** ******, *** HVAC ****** ********* ** larger ******* ** *** consumer ***** ** **** segment ********* ** **** and **** ********** ***** homeowners.

Comments (7)

I always thought this lock was dumb -- it looks HUGE on the back of a  household door.

 

The Yale touchpad on the other hand looks great, and feels elegant and slick in use.

I agree with you to a point, it does look pretty large on the back of the door. But that also gives it an advantage that Yale or Schlage or Kwikset don't have: on the outside, the lock looks like nothing is different.

This is important for the target market. They've aimed it at a hipper, younger demographic than others. It was also one of the first security products to sell in Apple stores. That market is more design conscious than many others, so being able to pick from a wider variety of styles of deadbolt but automate them is attractive. I don't mind the look of some of the other deadbolt locks, like some specific Yale or Kwikset styles, but I don't prefer them to some of the more modern, minimalist types of deadbolt. 

This is actually a conversation that Brian Rhodes and I have been revisiting via email for the past several months or longer, as I've been trying to find something for a remodeled house to fit both the automation and design needs I have. 

This is actually a conversation that Brian Rhodes and I have been revisiting via email for the past several months or longer...

FOIA request initiated. The membership demands a full accounting of the A/C products under discussion and their associated trade-offs, as well as any subjective considerations made.

Release the letters!

;)

That's funny.  That's an exceedingly boring FOIA request.  Most times, Ethan & I talk about attributes like if a lock looks good enough to avoid scrutiny from our families, if we could drill it/jackpot it with random handtools, and if we can configure IFTTT actions when it activates.

Full disclosure: I bought an August at an Apple store months ago, as an impulse item (an access control product, imagine that!!), without much thought.

During installation it became apparent it would never work because my deadbolt was so old that it required extreme torque, as well as a slight inward pressure, to make it budge.

I was going to return it but it makes the bolt so much easier to turn that I have kept it anyway.  Also, providing the mental justification for buying a $200 aluminum ingot is that I’m well aware that if and when I get around to* fixing the underlying stickiness, the August should work as expected.

I wonder if August considered this use case as a possible return mitigation strategy. 

It’s basically the equivalent of a steering wheel knob:

*never

Why not go with something like a Baldwin electrified mortise lock? That's what I installed at my house, and I was able to get very architecturally-appealing knobs that match the look of our house. There are a ton of other options out there too, as you can basically associate any knob or lever with their locks.

Now, I understand that this may require replacing the entire door and door jamb to get a mortise lock to fit in place of whatever you have now, but...you're Ethan. You can do anything.

Plus, you can also do whatever you want with it from an automation perspective because you can easily trigger a relay on a 24v power supply with anything your imagination can dream up. No worrying about whether you can hack together something from an API or whatever. And, it's all local -- no cloud nonsense either, which was a big sticking point for me.

August sent an email blast recently touting "Help us celebrate 1,000,000 users!"

For an access control product that was neither first to market, nor is at the low cost end of offerings, that seems surprisingly large.

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