UTC-GE Closed: What Becomes of GE Security's Products and Brands?
Important new information on the future of GE Security's products and brands have been disclosed as part of the formal confirmation that the UTC-GE deal has closed [link no longer available]. UTC has posted a new website dedicated to the combined UTC/GE new entity [link no longer available] that share key details. The FAQ section [link no longer available] is the most important to read for those interested in the future of GE products. Key points:
- UTC has licensed the GE brand for at least 3 years overall and 10 years for the global video surveillance products (Given GE's decidedly 'mixed' reputation in security, this has its advantages and disadvantages).
- UTC Fire and Security President emphasized that the potentially conflicting UTC services businesses would be managed separately from GE's product businesses. This is, of course, easiler said than done.
- UTC argues that the acquisition benefits the security business by: "the GES portfolio will build scale and complement Lenel's leadership in enterprise software and Onity’s capabilities in electronic locks." We are not sure how adding such dead weight to Lenel will benefit them.
- They confirmed again that GE Security's revenues were only $1.2 Billion in 2009 (this was projected last year before the close of the deal).
- UTC disclosed GE Security's revenue breakdown: 50% security products, 30% fire safety products, 20% fire and security service. Though fire was widely cited as the key to this deal, the majority of revenue is from security.
- 2/3rds of GE Security's revenue came from North America.
- UTC says they will not speed up discontinuing GE products: "GES has great products. It is UTCFS’ intention to continue to invest in these products with obvious consideration to normal product lifecycles."
- UTC says they are committed to the residential market.
- Casi-Rusco: UTC plans to continue offering both Casi-Rusco and Lenel (good news to their competitors and probably painful to Lenel). UTC states, "UTCFS believes that GES has a strong portfolio of products and brands that customers recognize and value, including Casi-Rusco/FCWnx. UTCFS intends to continue to offer customers a broad portfolio of brands that meet their specific requirements. The company also believes this offering gives us more channel coverage with the many Value-Added Resellers (VARs) in the industry."
- In UTC Fire and Security President's overview video, he notes 75 new products were introduced in the last 2 years and that 50 are in development. This is fairly low for such a large, multi-billion dollar organization.