• Honeywell International Inc (NASDAQ: HON) agreed to acquire privately-held US Digital Designs, Inc., for a purchase multiple of ~14X EBITDA in an all-cash transaction. Deal terms not disclosed.
• Tempe, Arizona-based US Digital Designs delivers alerting and dispatch communications solutions, enhancing first responders' efficacy and enabling faster emergency response times.
• US Digital Designs' EBITDA margins are accretive to Honeywell. Honeywell expects to achieve a greater than 25% return on investment by the fifth year.
• Honeywell anticipates integrating the US Digital Designs into the Fire and Connected Life Safety systems business and expanding the line of solutions for public safety communications.
• "Integrating US Digital Designs' fire station alerting capabilities with Honeywell's Connected Life Safety Services will allow us to eliminate manual processes and significantly reduce response time," said Doug Wright, CEO of Honeywell Building Technologies.
• Honeywell held cash and cash equivalents of .1 billion as of September 30, 2021.
• This acquisition does not affect Honeywell's financial guidance and is expected to close in 1Q22.
• Price Action: HON shares closed lower by 0.28% at $209.23 on Monday.