HID Global®, a subsidiary of ASSA ABLOY specialising in trusted identity solutions, has signed an agreement to acquire Mercury Security, an OEM supplier of controllers for physical access control. Mercury Security has over three million controllers installed at tens of thousands of sites worldwide, including at more than 90 of the Fortune 100 companies. Mercury’s intelligent controllers, interface boards and software complement HID’s readers, smart cards and mobile IDs for opening doors.

Advancing HID global leadership

“The acquisition of Mercury Security will advance HID‘s global leadership in the physical access control industry, adding Mercury Security’s high-quality controllers to HID’s product portfolio while extending HID’s installed base of millions of users beyond the readers and smart cards that we are already well known for,” said Stefan Widing, President and CEO of HID Global. “Customers of both HID and Mercury Security will benefit from tighter and more seamless integration of controllers with readers and credentials, as well as from our shared vision for an open, flexible approach to access control.”

Selling Mercury Security Products to HID Global is Access Control Related Enterprises, LLC (ACRE), owner of Vanderbilt, a manufacturer of access control, intrusion and video solutions, and ComNet, a manufacturer of video and data transmission equipment.

ACRE CEO Joseph Grillo stated, “Divesting Mercury after many years of success since ACRE purchased the business in 2013 is a strategic move that allows ACRE to focus on its core Access Control, Video and Intrusion businesses under the Vanderbilt and ComNet brands. HID is the perfect home to provide for the continued growth and success of Mercury, which will remain a valued technology supplier to Vanderbilt.”

Mercury has relationships with nearly all the significant OEM partners and has been working together with HID as a partner for over a decade

Closing the acquisition

HID’s acquisition of Mercury Security is subject to regulatory approval and customary closing conditions. The closing of the deal is expected to happen by Q4 2017. Financial terms of the agreement are not being publicly disclosed. Houlihan Lokey Capital, Inc. and Raymond James & Associates, Inc., acted as financial advisors to ACRE and Mercury. 

Based in Long Beach, California, Mercury has relationships with nearly all the significant OEM partners and has been working together with HID as a partner for over a decade.

Pending the close, the Mercury Security team will report into HID’s Physical Access Control Solutions (PACS) business, which is led by Harm Radstaak, Vice President and Managing Director.

The remaining ACRE portfolio consists of global brands and provides over 2,000 products across access control, intrusion, video and cloud-based access and video systems in 95 countries. ComNet offers a broad line of fibre optic, copper, and wireless video and data transmission equipment designed for security and surveillance applications in intelligent transportation systems, utility and industrial markets.

ACRE security industry acquisitions

ACRE was formed in 2012 by security industry veteran Joseph Grillo as a platform to consolidate acquisitions in the electronic security industry. ACRE acquired the Schlage SMS business from Ingersoll Rand in 2012, followed by the 2013 acquisition of Mercury, the 2015 purchase of the Security Products Division of Siemens AG, and the 2016 acquisitions of Access Control Technology (ACT) and ComNet.

Millions of people around the world use HID products and services to navigate their everyday lives, and over 2 billion things are connected through HID technology. HID works with governments, educational institutions, hospitals, financial institutions, industrial businesses and some of the most innovative companies on the planet. Headquartered in Austin, Texas, HID Global has over 3,200 employees worldwide and operates in more than 100 countries. HID Global® is an ASSA ABLOY Group brand.

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