Honeywell Acquires Carrier Access, Worst Case Scenario For LenelS2
Honeywell beat out two other large security industry companies to acquire Carrier Access, which is a worst-case scenario for LenelS2.
UPDATE: Why Lenel Perpetual Problems Are Economically Rational Analyzed
In this note, we explain who Honeywell beat out, why this is so bad for LenelS2, but why it could be a solid financial move for Honeywell.
For our earlier reporting, see: Carrier Seeks Few Billion Dollars For Fire & Security, Will Partially Spin/Split/IPO, and Carrier Plan To Sell Fire & Security Analyzed.
Bidding *******
********, *********, *************** *** ***** ********* *** ******* Access, ******* *** * *** ******* equity ***** ** **** *** ***** round, *** ******** ******* ** ****. Honeywell ********* **** ** *** ***** for ******* ** ***** **** ** the *******.
******: ******** **** **** **** **** did *** ****** * ***.
**** * "**********" (********* **** **** complimentary ******** ** ******* ******) ***** be *** ********* ** ******** ** Carrier ****** ** ***** ****** *** has ****** ********** ****** ** ******** these ********* ** *** ******** *** the ********* ***** / ********* ** combining ******* ******, **** **** ******* equity **** ***** *** ** ************.
** ** ***** ** ** *** Honeywell ****** ******** ***********. *** ****** ****** ****** ******* in *** ******* *** $*.** ** $4 *******, **** ********* ******* **** than **% ******. ********* ***** **** asset ************* **** **** ****** ******** or ********.
*** ********, **** ***** **** **** a ****** ***** ****, ** * significant ******* ** ********'* ********* *** LenelS2's ******.*** ****** ******* *** ********:
********* ******* ** ****** *** ********* successful **** ********* ** **** **** good. *** ******* ****** **** (**** to ****) *** *** ****** **** come ** ****. ** **** ** pull *** ******* **** *****/** **** this ** *** ***** ***** *** other *** ******** (**** **** *** others) ** **** ********* *** *** wireless ****. ** *** ***** ** feel ***** ******** ** ********* **** them ** *** ******.
*** ********, ** ***** ******** **** deal **** *****, ** ** ********* in*** ******** ****** ******* ***** ******** But *** ******* *&* / ******* (Analyzed), ********* *** ******* *&* ******** being *** ********* *** ******** ********.
Honeywell ****** **********
********* *** ********* ** ******** *** many *****. **** ***** ************* **** have *** ********** **** ********** *** advancing (**** ** ******* *** ***), Honeywell ** ******** *** *****. *** lack ** *** ************ ** **** the ****** ******* *** ***** **** is ****** **********, ** *** **** they **** ****.
********, ********* *** **** **** *** security ************ ** *** **** ******. The **** ****** ******** **** *********************** ***** ***, ** ****.
****, ********* ******* *** ************ ****** ******* ****, ***-*****, **** ******** **** ******* *** is **** **** ***** / ******* old *** **** **** ********** **** Lenel.
** * ******, ********* ** ****** viewed *********** ** *** ******** ********** customers, **** ********* ********* *-* *** ****** ** ******** *-** *** ****** ** ****** *********** ****. ** ********,*******'* ************ *********** ********** ********, ********* **** *** last *** *****, ****** ***** **** ** ***********.
Cultural *** ******* ******* *** *********
*** **** ******** *** ** **** both ********* *** ******* ** ********** short-term ******* *** *********, ** ** should ** ****** **** ** ********** from *** / ******* ** *********.
Ground **** *******
*** ******* ** **** *********, ****** it ********* ******** **** *** ** operates ************ *** *** ** ******* it **** ******* ***** **********, **** ground **** ******* *** *** ***** Carrier ****** ********** ********** *** *****-**** cash **** **********.
*** ***** ********** ** ** ****** a ****** **** ***, **** **** to ****** ******* ** *** ************, such ** *****, *** ***** *********** run ******* ** *********'* ***** ** cash **********.
Good ********* **** *** *********
** ******** ** ** *** *** the ****** ** *******'* ******** ********, this *** **** **** ** * good ********* **** *** *********, ** declining ********** *** *************** **** *** future ** ***** ******** ******** ******* cash ******* **** *** **** **** years *** *********.
*********'* *** ***** ************ **** *****-**** *****, **** *** company *******:
** ***** **** **** ** ********* ownership, *********** **** ******* * ******-***** cash-ROIC
**** ******* ******* ****** **** ******** $500 ******* ** *********** **** **** annually ** **** ***** (**** ** 10% ** *** ~$* ******* **** are ******** ** ******* ******* ******).
** ********, ********* **** ******* ****** will ***** $*+ ******* ****** *******:
*********’* ****** ***** ****** ********** ******** automation ******** *** ******** ***** **** a ******* *** **** **** ****** a ******* ******** ******** **** ********** annual ******* ** ****** ** $* billion
******* **** ********* *** ****** ******* and ****** *** ******* ******, *** the "********" ******* **** **** (*** and ***) ***** ****** ** ~$*** million.
**** ******* ****** ** ****** ********** is ************, ********** ***** ***** ****-**** underinvestment ** **********.
***, **** ********* ** *** ***** seeking **** **** **** **********, ****-**** competitiveness **** ******.
**** ***** ******** **** *** *******, maybe **** *** ******* ** ****,***** *** **** ********* **, *** **** ** *** *** of *** **** *** ******* ***** a ****** ********** ** *** **** generation ** ***** / ****** ****** control.
***** ** ** *** ***** ** need ** ***** ** ** ****** control *****. ******** ** ***** ******* with *********!
********* *** ******* **-**** ****** ****** that *** ************-******* ****** ******, ****** it's ******-**** ******** ********.********* ************ ** ** **** ******* replacing **.
* ****** *** **** **** ******* that *********? ** ****** *** **** an *********** ****.
*******'* ********* ******* "********** ** ****" ********* ***** a "********** ** **********":
** **** *****, ** *** ** be ******** ***** **** * ****, and ***** ** ** ********* ********, as ** *** **** **** ** LenelS2 *** * ****.
*** ********* ******** *** ***** ** much "********** ** **********" ** * have ** *****.
** * ****** ********* ** *** an ******** ******* ********* ***** **** to *** *** *****/** ****. ** guess ** ** ****** ****** ****** the ***** ******* *** ** **** placed **** ****** *******. *'* *** that * ********* ****** **** ** announced ****** ** *** ************ ** the ****.
****...* *** ******** **** *** *** was **** *******, ** *** ***...** that **** *** ******* ** *** staying ******** ***********.
*** ******* ******** *** **, ** the **** ** ** **** ******* showing * ******* "*********" ***** **** into * ********* "*********". *'** **** to ****** ****.
*********, *** ******* ***** *** ******** size ** *** ************: * ******* box ******* **** * **** ****** one. **** *** ********* *** *********. Will ***** ** *** ***********?
*** **** **** **** ** **** up **** ** ***** ******** ********. See***** ********, **** **** *** ******** Products ********. **** **** **** ** ****** for ******** ** ******* ***** ******** products,*** ******** ****** ******* ***** ******** But *** ******* *&* / ******* (Analyzed)
*** **** **** **** ** ****...
*** **** ** *** ******** *********. It ****** **** *** ** ********* until ** ****, ******** ***** *** not *** *********** ****-***** ******* ***** cause *****.
* ***** **** ** * ********* and *** **** ** ********* ****** is **** ***.
**** ***** * ** ** ***** technically ********* *** ***** *** *** noting ****.
***** * ***'* ** ******* ** use ******* *******. **** ******* ******, and ** ********** **** ********* ******* your ********.
** *** **** *******?
**** ** ***** **** ********** *** is ** **** -******* ***** *** ******* ******* *** Fire & ********, **** ********* ****/*****/***. ** ***'* **** ****** ***** fire ** *****.
***** ****** **** ****** *** ******** to ****, **** ******* **** *********’* premier ******** **** ** * ***’* see ****.
** **** * ************ **** **** municipal *** ******* ******** **** **.
* ***’* *** * ******* **** has ****** ******** *** #* **** manufacturer ****** **** ** ****** *** #2
**** *******? *****?***** ******** ******** ** *** ****, ***** ** *** ********* ** acquire ******** ** ******** ** ****. And * ** ****** ******** ** a ****** *** *** ***** ********, not **** ********* ***** *** ***** security.
*’** **** ******* *** *******.
********, * ********* **** ***** ** one ** *** **** ******* ***** system **** *******, ******** ** ****** Knight, ********, ********, *** ** ***** brands. (** *** ***** ** *** to ***)
******* *** ******* ***** *** **** the *********** ********** ** ******** ** that ******** **** **** ***********.
** *** *** *** ******* *** large ********** ******* ***** ** *** Tyco/JCI ***********.
** *** **, ***** **** *** brands ** ****.
**** * ** ****** ** *** is * ***’* ***** ** ***** make ***** *** ********* ** ******* EST *** ***** *******.
**********: ******** ***** **** *&*, **** is *** *******. **'* *** ******** side, **** ** ** ******** ******* -******* ** ***** ** **** ** Fire *** ************ ** **** ********** *** **** process ** ******* ********.
*'* ***** ** ***** ******** *** dinosaurs *****. * ***** ** **** get ** *** **** * **** death ** ******** ****** ** ****** will **** ****. ** *** ** in ***** **** *********, *****, *** Pelco *** *** ** **** ** in ****** *******.
* ***** * ****** *** **** popcorn *** ***** *** ****.
*** ******** **** **** ** **** many ******** ******* *** **** **** staved *** ** ***** *** ***** will **** ***** ***********.
**** ** ** **********!
**** ***** ***** *** *********, *** I ***** **** *** ** ** a **** ***** ****** ** ****** some ****** ** ********* ** *** security *****. ***'* *** * ***** them ** ***, *** *** **** that ******* ******* **** **** ********* rather **** *** ***** *** ****** is *** *** **** *** ** to ******* **** **** **** ****** in ******** **** *** ****, ***** dealers, ** ***** *********. **** **** tell, * *****.
*****, ** **, *** ***** **** sense *** ********* ** ***, ***. I ******'* **** ******* ** ******, but * *** *** ********* ****** both ** ******** ********** ********...***** **** LenelS2 *** ***** **** **** ****** more **** *********.
*** ** ** ***...
******: ******** **** **** **** **** did *** ****** * ***. ** have ******* *** ******.
***'* ** ******, ******** ********* ******** will **** ***.
******, ****** *** **** ***** *******.
* ****** ** ********* **** ********* destroys ****** *** ******* **** *** stupid ** *********** *** ******* **** view ********** ** ******** ** ******** short-term **** **********. ** *** ***'* care ***** ******** ** **********, **'* an *** ** *** ** ******.
*** ** **** *** ****** **** much *** ** ** ****** ** LenelS2. ********* **** *** ********* **** flow-generating ***** *** ****, *** *** executive ******** **** **** ** *********** on **** **** *** ** *** long-term **********, ******* ***********, *** ******* to ****** **** **** ***** *** met (** ** ***** *** ******** by ******* *** *** ** **).
*** ****** ****** **** ********* *** saying "****** *** ******** *** ********** you *** ****** **** ****." ******, Jim ****** ****** *** ********** ** he ***'* **** *** ** **** but *** ****** **** ********* ** going ** **** **** ******** ** truly **********.
*** ** ** *****, *** ** to ** * **** ********* **** for *********, **** ***'* **** ** do ******** ***** ** ****** **** security.
****** ****** ** ***** ****** *** mobile, ***** ********* ** * **** driver ********* *** *** ******** ********** or *********** ** *******.
**'* *********** *** ********* / ********* see **** ******...*** ******.
***** ** ** ** **** ********** but *** ***** ** ** *** inside *** ********, ** *** *** a *** *********.
**** *****, *** ********** ***** ***** to ** **** *****+*******.
*********** **** **** *** **** **** organisations ***** **** ** ***** **** on ****** - *** ******* ******** is ***** * ****** ********. (******* I **** **** ****** *** **** and ** *** **** *******...****)
***** ** ** ** **** **********
* ***** ****'* **** ** * cable ** ********* *********.
*** *******, **** ** *** ****** hyping ***********:
**'* * ***** *** *** ********* it's **** ****** *** **** **** it *** ***** ****** *** ****** it ******* ***** ************* ** ****** about *** ****** ********.
**'* *********** *** ********* / ********* see **** ******...*** ******.
***, **** **** ** ******* ***** it ******** "****", **** **'* ******* as ***** **** ******* ***** **** cash *** **********. ***** ** *** from *** *****.
*** ******* ** ********* ********** *****/** reminds ** ** **** *** ****** Red *** ** **** ****** **** “Way ****” ****** (*******) ** *** Colorado ******* *** * ******* ** was ****** ***** *** ********* ** as “******* ** ******** ***** **** a *******”. *** **** ***** **** could **** ** ****** ** ** Pelco *** ****** **** **** ********* of **********.
***** ***** ****** *** *** ***** the **** ** ****.
******* *** ** ****** *% (******* $2 ******* ****** ****** ***), ***** is * ******* **** **** ********* that *** ********* ***** *** ****** than **** ********:
** ** ********* ** *** ******, the ****** ***** ********* *** ~$* billion, ** *** ****** $* ******* result *** * ******* **** **** expected. ** ******** ** ******* * billion ******* **** **** **** ********* than ********, ********* *** **** **** as * ******* **** *** *** other ***** ***** **** ***.
*********'* ***** *** **** *.*% ********* (roughly * $* ******* ****** *** fall), **** *** ***** **** ** Dec *** ********** *** ***** ***** at *** ******* ***** *** ******* deal *** *********:
*********'* ****** *** ** ****** ** that ** *******'* ** **'* ********** that *********'* ****** *** ***** *** be ** **** ******** ** *******'*.
***/***, **'* **** ** ******* **** the ****** ***** **** ********* ******** overpaid *** **** ** ******** / expects ******* ****** ** ******* ***********.
* ***’* **** *** *** **** Lenel ** ******* *** **** **********
******** ***********, ***** *** ******** ********:
* ***'* ***** ********* **** ** anything ******* ** *******, *** ******** product *********** ****** **** ** ******** but ****** ***** ****-********** *********** ******* at * ****** ****.
********* ********* **** ********* *** ***** the ****:
**** ****** ****:
- "**** ****** **** ******** ** *** core ********" - ******* *********'* ******* growth ****** ** * ****** *-*%
- ***** ** *** ***** ** ******** about ******** ****** "*** ****** ***** to **** ****** ***** ****** ****"
- "** ***'* ** ***** ***** ***'* meet *** ********* *****, ****'* * strong ********* ** ****** ********"
- ******** *** ************ ****** ****** *** Honeywell ********
- "***** ******** *** ****** **** ********" citing **** ******* *** ****** *** need "************* ****** *******"
******* ************ ****** ********* ** *** company, ********* *** *********. *'** **** little ******** **** ********* ** *****. I ***'* *** **** ** *** way ***** **** *** ******* ** any ** *** ******* ** *** long ****.
** **** ** ******* ****** **** from **** **** **** ****** **** Lenel . * **** *** **** being * **** ***** *** **** . *** *** *********** ***** !!!
**** ****** **** ** ***** ********** central ******* ********** ******** *** **** of **** ****? * ****** **** where ** ** ******** ******** *** assumed **** ** ***** ** **** the ******** ********.
**** ********. ** ********** **** ** was ********. ***** ** **** ** sell ** ** ** ******** **** it ** ******** **********.
****'* *** ** ****... *** *** a ***** ******* / ******** ** work **** *** **** **** *****. Sad ** ***** **** ********* **** do ** ****...
*** *** *** **** **** **** it *** *********** *** *** *** like ******* ** ** ****** * ton ** ***** **** *** ************ either.
********* *** *** ******* ** ****** do **** ***** ****** **** *** and **** **** **** **** *** they **** **** **. *** ******** needs ******* ********** ********* ** * hope **** ** ********* **** ** just **** *** **** *** ** it, ******* *******.
* ****** ***** ******* ** ** spent ** ****** **** **** *********** traveling ** ******* ** ********** ** explain **** **** *** ** ***.
***** *** **** *** *** *********/****** products ********** ******* ** *** ***.
*** *** ***** ** **** ******* for **:
"For ***** ********** ** ** ****** * ****** **** ***, **** **** ** ****** ******* ** *** ************, **** ** *****, *** ***** *********** *** ******* ** *********'* ***** ** **** **********."
** ******* ***** ******* **** ******* for * ******. ******* *** ***** invested *** ***** ** ******* ***** term *******. **** ** ***** ******** are ******, ***** ** **** ********* and ****'** ****** ** ****** ** new - ******** ** * ***** example.
******* ** ********** ** ************* *** investing ******* ** ******* *** ** shows.
***** * ***** ********* **** ****** starve *** **** ***.
*** ***** ***** **** ******** * VC *** ******* ** ***** ** something **** ***** ** *** ** on. **** * *** *********** **** first ***** ** *******, *** ***** up *** ******* *** ***** ** into *** ****. ************* ****** ****** a *** **** ***********.
******* ** *** ******* *** *** commercial ************* ******** ** *** *****'* Haier, *** ****** **** ** * week ********* *** **** ** *********:
** ** * ****** ** *** more ***** **** ******** ************ **** the *** ** ******* *********, **** replace *** ***** ******** *********** **** we **** **** ***** *** **** 40 ***** ** ***; **** *** do *** **** ***** ** **** cases **** **** *********** **** ************ to ************. ***** *********** *** **** to ****, *** ** ** ********* to ******* ********* ** ***** **** of ***** *** ******* ************ ** are *****. */* ** *** ********* stages ** ****, *** **** ** be ********* **** *** *** ** quantum *********. ** **** **** ********** many ******* *** ************, **** ** will ** ****** *** *** ************* with ***** ************; *** **** ** too **** ** ***** ** **** time, *** ** ** ****, * only *** ***** ************* **** ****** to *** ******.
*** ******** ******** ** ** *** not *********.
******: **** ******* *** **** ***** to *** *** **********:*** ******** ******** ** ** *** Not *********.
*** ******* **-*-**