Santa Ana, CA – August 6, 2015 — Universal Electronics Inc. (UEI), (NASDAQ:UEIC) is pleased to announce that it has entered into an agreement to acquire U.S.-based Ecolink Intelligent Technology, Inc.
“We are very excited to bring the Ecolink team under the UEI umbrella. The team at Ecolink has some of the industry’s leading experts in the wireless sensor market and a track record of bringing creative, innovative and high performing products to market. Ecolink’s expertise in wireless security and home automation technology will bring a new level of compatibility to the industry to enable sensors throughout the home to work together seamlessly,” said Paul Arling, UEI’s Chairman and CEO.
According to Parks Associates, residential home security is leading the transition to the smart home. “The majority of sensors and control panels sold today can be accessed and remotely controlled with a mobile device. No other residential product can make that claim,” said Tom Kerber, Director Research, Parks Associates. “Additionally, over the past 4 years, cable and telco providers have successfully added home security and automation services to their offerings, gaining an estimated 14% share of professionally-monitored security systems in U.S. broadband households.”
“With over 25 years of experience as a technology and product supplier to the cable/telco industry, UEI, through this acquisition, is well positioned to supply these wireless solutions to its customers,” stated Tricia Parks, Founder and CEO at Parks Associates.
According to data from ABI Research, the global sensor and device market for home security and automation is expected to grow from $1.4 billion in 2015 to $4.0 billion in 2019, with growth forecasted across all three channels of distribution: pro-security; cable/telco and consumer/DIY. This acquisition allows UEI to extend its market reach into traditional home security and consumer/DIY – channels that are actively served by Ecolink products and solutions today.
The purchase price for the acquisition of Ecolink assets will be approximately $12.4 million in cash plus incentive-based cash consideration to be paid over the next five years. Ecolink’s acquired assets include over 25 issued and pending patents, and other related intellectual property and assets used in its smart home, wireless security and home automation business.
UEI intends to operate the acquired business as a wholly-owned subsidiary and market the home security and automation products and services under Ecolink brands and trademarks, leveraging Ecolink’s many years of experience, expertise and innovation in the industry.
“We are excited to be joining the UEI team,” stated Michael Lamb, Ecolink’s President and CEO, “UEI’s leadership position in cable and telco, as well as their operational excellence will give our home security products the boost needed to achieve significant market penetration.”
About Ecolink Intelligent Technology
Ecolink is a leading developer of smart home technology. The company delivers a wide range of intelligent wireless security and automation components dedicated to redefining the home security experience. Ecolink has over 20 years of wireless engineering expertise in the home security and automation market and holds more than 25 related pending and issued patents. For more information, visit www.discoverecolink.com.
About Universal Electronics Inc.
Founded in 1986, Universal Electronics Inc. (UEI) is the global leader in wireless control technology for the connected home. UEI designs, develops, and delivers innovative solutions that enable consumers to control entertainment devices, digital media, and home systems. The company’s broad portfolio of patented technologies and database of infrared control software have been adopted by many Fortune 500 companies in the consumer electronics, subscription broadcast, and computing industries. UEI sells and licenses wireless control products through distributors and retailers under the One For All® brand name. More information is available at http://www.uei.com
Safe Harbor Statement
This press release contains forward-looking statements that are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words and expressions reflecting something other than historical fact are intended to identify forward-looking statements. These forward-looking statements involve a number of risks and uncertainties, including the successful closing of the transaction between UEI and Ecolink and integration of their respective business lines, the timely development, delivery and market acceptance of products and technologies such as home security, home automation, wireless sensors and other technologies identified in this release; the continued penetration and growth of next generation consumer technologies; and other factors described in the Company’s filings with the Securities and Exchange Commission. The actual results that the Company achieves may differ materially from any forward-looking statement due to such risks and uncertainties. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
UEI: Benny Canady, 714-918-9500
IR Agency: Becky Herrick, 415-433-3777