ASSA ABLOY Expands Footprint Through Acquisitions of 3millID and Third Millennium

ASSA ABLOY's Strategic Acquisitions: 3millID and Third Millennium

In a significant move to bolster its portfolio and expand its technology offerings, ASSA ABLOY Group has announced the acquisition of both 3millID Corporation and Third Millennium Systems Ltd. This acquisition aims to enhance ASSA ABLOY's capabilities in the realm of physical access control systems, a sector that has witnessed growing demand in recent years.

Bridging Gaps in Access Control

ASSA ABLOY, based in Stockholm, Sweden, is a renowned global leader in access solutions with a workforce of 61,000 and annual sales reaching SEK 141 billion. By acquiring 3millID, headquartered in Highlands Ranch, Colorado, and Third Millennium based in Wales, UK, the company aims to leverage their advanced technologies and solutions. 3millID is noted for its proprietary access control readers, while Third Millennium focuses on software solutions that cater to governmental and enterprise customers.

Nico Delvaux, President and CEO of ASSA ABLOY, expressed his enthusiasm regarding these acquisitions, highlighting that they represent exciting technological enhancements for the company. He emphasized that these additions not only reinforce their current offerings but also present complementary growth opportunities in the physical access control market.

Expanding Market Reach

Both 3millID and Third Millennium have collaborated with ASSA ABLOY since 2015 through a commercial partnership that included technology development and sales strategies. With a combined workforce of roughly 40 employees, the integration of these companies into ASSA ABLOY’s existing structure is set to foster further innovation and expand their geographical outreach beyond the United States.

Björn Lidefelt, Executive Vice President and Head of HID (ASSA ABLOY’s subsidiary specializing in access control), stated that welcoming these firms into the HID family underscores ASSA ABLOY's commitment to invest in core physical access technologies. The acquisition is anticipated to elevate customer choice and overall portfolio relevance.

Financial Implications

From a financial standpoint, the two firms generated sales amounting to approximately USD 21 million in 2023, demonstrating a robust earnings margin. This acquisition is expected to positively impact ASSA ABLOY's earnings per share (EPS) from the outset, showcasing a strategic alignment with their goal to enhance profitability and shareholder value.

Conclusion

The acquisition of 3millID and Third Millennium reflects ASSA ABLOY's dedication to staying ahead in the rapidly evolving access control landscape. With this strategic move, the company is positioned to offer cutting-edge solutions that cater to the needs of enterprise and government customers, thereby ensuring a broader global footprint. The deal, which is set to close in Q1 2025, is subject to customary conditions, and marks a promising future for ASSA ABLOY and its stakeholders.

For more details on the acquisition and its impacts on both companies and the access control industry, stay tuned for future updates from ASSA ABLOY.