UTC Acquires GE Security Examined

By: John Honovich, Published on Nov 11, 2009

On November 12 2009, UTC announces an acquisition of GE Security for $1.8 Billion [link no longer available]. GE Security would likely become a division of UTC Fire and Security [link no longer available]. 

UTC Company Profile

Despite UTC Fire and Security generating about $6 Billion in annual revenues [link no longer available], their product portfolio in security is shallow. For instance, 60% of revenues are from service and installation.

Access control is a strong area with their Lenel [link no longer available] division being one of, if not the leading, physical access control manufacturer (acquired in 2005 for $440 Million as noted inUTC's 2005 Annual report [link no longer available]).

The overlap between GE's Casi Rusco product offerings [link no longer available] and Lenel will be significant. Both product lines have substantial customer deployments but Lenel's product development over the last 5 years has far surpassed that of GE Security's physical access control. Does UTC keep both? Do they wind down the GE product line or spin it off? Lenel's product strengths give it a clear edge over GE Security's offering and likely spells more troubles for GE Security's access control customers.

UTC is weak in video surveillance and the additive effect of GE Security's video is questionable. Lenel lags in video surveillance and earlier this year partnered/OEMed their video to OnSSI.

Feedback on UTC Acquiring GE Security

SSN has extensive feedback and commentary from a UTC executive and an industry analyst. Additionally, UTC specifically calls out the Edwards fire business as a key strength. UTC wants to increase service revenues from the more traditional product business of GE Security. However, the problem with the video and access businesses are that the products are weak. It will be hard to drive up service revenue in the long run based on a weak product portfolio.

Comments : Members only. Login. or Join.

Related Reports

Mining Company Security Manager Interview on May 10, 2019
First Quantum Minerals Limited (FQML) is a global enterprise with offices on 4 continents and operations in 7 countries with exploratory operations...
LenelS2 Launches VRx Video Platform on Apr 29, 2019
For years, S2's video management platform, the NetVR, was based on Exacq. Now, after years of internal development, S2 has launched its own...
S2 Access Control / 'Unified Security Management' Profile on May 08, 2018
In our 13th access control company profile, we examine S2 Security's Netbox platform: Unified Security Management Platform positioning Core...
Netwatch / NMC Mega Deal Targets Global Remote Video Monitoring on Apr 27, 2018
Big money has entered the remote video monitoring market. While remote video monitoring has been done for more than a decade, the market has...
Exacq Unbreaks Avigilon Integration on Oct 18, 2017
For nearly 4 years, Exacq had broken and effectively blocked use with Avigilon cameras, as IPVM reported in January 2014. Now, Exacq has...
Genetec Launches Cloud Access Control (Synergis SaaS) on Sep 21, 2017
Genetec's cloud everything expansion continues, with their announcement of Synergis SaaS edition, joining their cloud video offering Stratocast,...
Genetec Launches Community Connect Examined on Sep 14, 2017
Genetec has done best in large-scale, enterprise systems and relatively worse in smaller systems such as SMB. Now, Genetec is launching...
Competing Against G4S on Aug 09, 2017
G4S Secure Solutions [link no longer available] is a global company, operating in multiple countries and offering a suite of products and services...
NLSS / ATV Partnership Examined on Jun 13, 2017
NLSS has been one of the most ambitious security / surveillance startups. After selling his last startup, Sypixx, to Cisco, Pete Jankowski [link no...
5th Acquisition for ACRE, Adds ComNet on Dec 14, 2016
Mercury, Siemens Security, Vanderbilt, ACT and now ComNet. While other companies are trying to get out of security, emerging conglomerate ACRE...

Most Recent Industry Reports

Verkada: "IPVM Should Never Be Your Source of News" on Jul 02, 2020
Verkada was unhappy with IPVM's recent coverage declaring that reading IPVM is 'not a good look' and that 'IPVM should never be your source of...
Vintra Presents FulcrumAI Face Recognition on Jul 02, 2020
Vintra presented its FulcrumAI face recognition and mask detection offering at the May 2020 IPVM Startups show. Inside this report: A...
Uniview Wrist Temperature Reader Tested on Jul 02, 2020
Uniview is promoting measuring wrist temperatures whereas most others are just offering forehead or inner canthus measurements. But how well does...
Dahua USA Admits Thermal Solutions "Qualify As Medical Devices" on Jul 02, 2020
Dahua USA has issued a press release admitting a controversial point in the industry but an obvious one to the US FDA, that the thermal temperature...
Access Control Online Show - July 2020 - With 40+ Manufacturers - Register Now on Jul 01, 2020
IPVM is excited to announce our July 2020 Access Control Show. With 40+ companies presenting across 4 days, this is a unique opportunity to hear...
Hanwha Face Mask Detection Tested on Jul 01, 2020
Face mask detection or, more specifically lack-of-face-mask detection, is an expanding offering in the midst of coronavirus. Hanwha in partnership...
UK Government Says Fever Cameras "Unsuitable" on Jul 01, 2020
The UK government's medical device regulator, MHRA, told IPVM that fever-seeking thermal cameras are "unsuitable for this purpose" and recommends...
Camera Course Summer 2020 on Jun 30, 2020
This is the only independent surveillance camera course, based on in-depth product and technology testing. Lots of manufacturer training...
Worst Over But Integrators Still Dealing With Coronavirus Problems (June Statistics) on Jun 30, 2020
While numbers of integrators very impacted by Coronavirus continue to drop, most are still moderately dealing with the pandemic's problems, June...