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.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

PSIM CNL Acquired By Everbridge on Mar 09, 2020
The end has finally come for CNL. Despite for years saying they would revolutionize the industry, they have been taken over in a footnote of a...
Verkada Raises $80 Million, Triples Valuation To $1.6 Billion on Jan 30, 2020
Verkada's rocketing valuation continues. 9 months ago, they got a half-billion valuation and now they have announced more than triple that, at $1.6...
Vivint Valuation Falls $1.5 Billion on Dec 19, 2019
Residential market struggles continue. Now, Vivint's valuation has fallen $1.5 billion in its impending merger. Inside this note, we examine...
ADT CEO Not Worried About DIY: "2 Discrete Markets" on Dec 13, 2019
ADT's CEO is not worried about DIY, characterizing DIY and ADT's DIFY as "2 discrete markets" at the Imperial Capital Security Investor's...
"Good Market, Bad Business Models" - Residential Security on Dec 11, 2019
Industry banker John Mack, at his company's annual event, took aim squarely at the problems in the residential security...
Disruptor Wyze Releases Undisruptive Smartlock on Dec 06, 2019
While Wyze has disrupted the consumer IP camera market with ~$20 cameras, its entrance into smart locks is entirely undisruptive. We have...
ADT Stock Surges - "Leading The Commercial Space" on Nov 15, 2019
Don't call it comeback... but maybe call it a commercial provider. ADT, whose stock dropped by as much as 2/3rds since IPOing in 2018, has now...
"Stress in the Residential Market" - Major Lender Exits on Nov 06, 2019
The residential security / 'alarm' market is getting worse, at least for traditional players. Now, one of the biggest lenders in the industry has...
Alarm.com Acquires OpenEye on Oct 21, 2019
Alarm.com is targeting commercial expansion and now they have a commercial cloud VMS with the acquisition of OpenEye. In this note, based on...
The Fastest Growing Video Surveillance Sales Organization Ever - Verkada on Apr 17, 2019
Verkada has the fastest growing video surveillance sales organization ever. In less than 2 years, they already have more salespeople in the US...

Most Recent Industry Reports

YCombinator AI Startup Visual One Tested on Apr 02, 2020
Startup Visual One, backed by Silicon Valley's powerful Y Combinator, aims to be "Your 24/7 Watchman" with advanced analytics and object...
Free IPVM Memberships For The Unemployed on Apr 02, 2020
IPVM is giving 3-month free memberships (regular price $99) for the unemployed, no questions asked. To get it, just contact us, your request...
Dahua Faked Coronavirus Camera Marketing on Apr 01, 2020
Dahua has conducted a coronavirus camera global marketing campaign centered around a faked detection. Now, Dahua has expanded this to the USA,...
Video Surveillance Trends 101 on Apr 01, 2020
This report examines major industry factors and how they could impact video surveillance in the next 5 - 10 years. This is part of our Video...
USA's Seek Scan Thermal Temperature System Examined on Apr 01, 2020
This US company, Seek, located down the road from FLIR and founded by former FLIR employees is offering a thermal temperature system for the...
Terrible Convergint Coronavirus Thermal Camera Recommendation on Apr 01, 2020
A week after Convergint disclosed falling revenue, pay and job cuts, Convergint is touting 'extensive research' that is either grossly incompetent...
The IPVM New Products Online Show April 2020 Opens With 40+ Manufacturers on Mar 31, 2020
IPVM is excited to announce the first New Products Online show, with 40+ manufacturers, to be held April 14 to the 16th, free to IPVM members,...
USA's Feevr Thermal Temperature System Examined on Mar 31, 2020
This US company has burst on to the scene, brashly naming itself 'feevr' and branding itself as a "COVID 19 - AI BASED NON CONTACT THERMAL...
JCI Coronavirus Cuts on Mar 31, 2020
JCI has made coronavirus cuts, the company told employees in an email that IPVM has reviewed. Inside this note, we examine the cuts made, the...
Add Door Operators To Fight Coronavirus on Mar 31, 2020
IPVM recommends that integrators advocate and end-users consider adding door operators to fight the spread of coronavirus. This delivers...