Honeywell and US Digital Designs

January 1, 2021

Honeywell To Acquire US Digital Designs, Inc., Expanding Public Safety Communications Capabilities

  • Acquisition has purchase multiple of ~14X EBITDA; Expected to achieve more than 25% return on investment by the fifth year that US Digital Designs is part of Honeywell
  • Combined offerings will enhance communications to first responders, eliminate manual processes, and enable faster emergency response times
  • Suite of hardware and software solutions will provide first responders with more accurate information, enabling better situational awareness before they even arrive onsite
  • Acquisition expands Honeywell’s already large portfolio of products, which help customers meet their environmental, social, and governance (ESG) goals

ATLANTADec. 13, 2021 /PRNewswire/ — Honeywell (Nasdaq: HON) today announced it has agreed to acquire privately held US Digital Designs, Inc., a Tempe, Ariz.-based company, for a purchase multiple of ~14X EBITDA in an all-cash transaction. The company delivers alerting and dispatch communications solutions, which enhance first responders’ efficacy and enable faster emergency response times.

US Digital Designs’ EBITDA margins are accretive to Honeywell, and Honeywell is expected to achieve a return on investment of greater than 25% by the fifth year that US Digital Designs is part of Honeywell.

The acquisition will be integrated into Honeywell’s Fire and Connected Life Safety systems business and will expand Honeywell’s line of solutions for public safety communications, providing first responders with better situational awareness of building emergencies and improved life safety. When combined with Honeywell’s solutions, US Digital Designs’ offerings will securely transmit detailed data about the emergency, such as the type of hazard, severity, and location within the impacted building, all before first responders even arrive onsite.