Universal Electronics, one of the pay-TV industry’s top suppliers of remote controls and home systems, is diving deeper into the smart home market through an acquisition of Ecolink Intelligent Technology.
UEI said it’s acquiring Ecolink’s assets for approximately $12.4 million in cash, plus incentive-based cash consideration to be paid over the next five years.
UEI said Ecolink’s acquired assets include over 25 issued and pending patents, and other related intellectual property and assets used in its smart home, wireless security and home automation business.
UEI intends to operate the acquired business as a wholly-owned subsidiary and market the home security and automation products and services under Ecolink brands and trademarks. UEI said the deal will enable it to extend its reach into traditional home security and consumer/do-it-yourself channels that are now served by Ecolink's products and solutions.
“We are very excited to bring the Ecolink team under the UEI umbrella,” Paul Arling, UEI’s chairman and CEO, said in a statement. “The team at Ecolink has some of the industry’s leading experts in the wireless sensor market and a track record of bringing creative, innovative and high performing products to market. Ecolink’s expertise in wireless security and home automation technology will bring a new level of compatibility to the industry to enable sensors throughout the home to work together seamlessly.”
Parks Associates estimates that cable and telco providers have gained a 14% share of professionally-monitored security systems in U.S. broadband households.