Honeywell to buy Carrier’s security business in $5B deal (NASDAQ:HON)

Honeywell (NASDAQ:HON) said Friday it agreed to acquire of Carrier’s (NYSE:CARR) Global Access Solutions business for $4.95B in cash, which it said will enable it to become a leading provider of security solutions for the digital age.

Honeywell (HON) said the deal supports its recently announced plans to align its portfolio to three key megatrends: automation, the future of aviation, and energy transition.

Carrier’s (CARR) security business makes products including electronic locks for big companies, hotels and hospital chains, and includes three industry-leading brands: LenelS2, Supra and Onity.

The purchase price represents ~13x estimated 2023 EBITDA, including tax benefits and run-rate cost synergies; the company expects the deal will be accretive in the first full year of ownership.