Nortek Buying 2GIG Tech for $135 Million
On Thursday, self-described "technology-driven" "lifestyle improvement" company Nortekannounced it is buying privately held 2GIG Technologies from APX Group.
Nortek will pay $135 million to acquire all outstanding shares of the residential security and home automation company, which makes touch-screen panels for "smart homes," used to control environmental and home alarm systems. The companies are already closely aligned, as 2GIG has been a customer of Nortek for some time. Nortek itself is a leading provider of whole-house audio, video, and security solutions.
As part of the agreement, Nortek noted that it will be agreeing to a five-year supply agreement with 2GIG customer Vivint, "one of the largest home automation services companies in North America."
Nortek shares are reacting positively to the news, rising 0.8% on a down day for the market, and recently selling for $73.50.
The article Nortek Buying 2GIG Tech for $135 Million originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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