Swedish lock conglomerate Assa Abloy announced this morning plans to acquire US-based smart lock maker August Home. Details about the deal a fairly scarce at the moment — pricing is not being disclosed at press time — though the two companies anticipate that the deal will close by year’s end.
Assa Abloy has been kicking around since 1881, becoming the name behind the popular Yale brand of locks. August, on the other hand, was founded roughly five years ago, but has quickly become a market leader in the connected security space, courtesy of its smart home locks and door bells.
The acquisition certainly makes sense for the older company — pivoting into new technologies can be tricky for a 130 year+ company like Assa Abloy. But the connected home security space is growing quickly, courtesy of the recent explosion of smart home solutions from companies like Amazon, Google and Apple.
August has been growing fairly quickly on its own in recent years, courtesy of distribution deals with mega-retailers in the U.S. like Best Buy. Back in July, the hardware startup raised a $25 million series C, with plans to beef of August Access, the company’s partner platform. Late last month, it also found a partner in mega-retailer Wal-mart, which announced its intentions to use the company’s connected locks as part of its delivery services. Among other things, this deal should increase August’s international presence.
In an exchange with August earlier this morning, the company announced that it will continue to operate under its existing brand, albeit as part of Assa Abloy’s U.S. division.