Johnson Controls acquires Qolsys

Companies hope to create a global force in the converging intrusion and smart building markets
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Wednesday, August 5, 2020

CORK, Ireland—Johnson Controls acquired the remaining stake of Qolsys Inc., a residential and commercial security and smart-home manufacturer, after owning a majority since 2014. The Qolsys founders and leadership team will remain in Silicon Valley (San Jose, Calif.), assuming key roles in Johnson Controls global intrusion business.

“We have this overwhelming feeling of not being done,” Qolysys VP Global Sales and Marketing Mike Hackett told Security Systems News, referring to what this deal means to Qolsys employees and leadership team. “While we are incredibly proud of the impact and achievements we made in the previous 10 years, we have an even more impactful roadmap still to deliver.  We’re excited to leverage the JCI global footprint to reach customers worldwide. Going forward we will maintain and grow our Silicon Valley presence to deliver next generation smart building solutions to JCI customers across the globe.”

Johnson Controls’ President of Global Products Jeff Williams noted that Qolsys has grown from a startup to “a leading security platform provider with over 4,000 dealers and service providers worldwide. Johnson Controls sees long-term opportunities to bring Silicon Valley innovation and culture to our broader cloud-enabled IoT solutions in building management, fire and HVAC businesses.”

He continued, “The opportunity to acquire Qolsys allows Johnson Controls to achieve operational efficiencies and scale across our global markets, while further enhancing the suite of products and services offered on our digital platform, OpenBlue.”

By applying data from both inside and outside buildings, Johnson Controls OpenBlue digital platforms empowers customers to manage operations while delivering safety and security in dynamic and agile environments.     

Qolsys continues to show consistent growth of services and dealers, which led to $150 million in revenues during fiscal year 2019. The award-winning IQ Panel 2 Plus and peripherals have driven explosive growth in North America and across the globe with future-proof features supported by over-the-air software updates, built-in panel camera, Bluetooth disarming and innovative installation and diagnostic tools to reduce costs and increase user engagement and satisfaction.

“As the world becomes more connected and the innovation curve continues to ramp at unprecedented speed, we are excited to join Johnson Controls,” said Qolsys CEO Dave Pulling, who will become vice president and general manager of the global intrusion products business for Johnson Controls, which had $500 million in revenue in fiscal year 2019. “We are committed to our customers in the security channel while continuing to invest in our roadmap and emerging verticals around the globe. This is a major milestone in our 10-year journey to disrupt and transform the security industry with advanced cloud-enabled solutions that transcend traditional intrusion offerings including advanced automation, energy management, apartment management, building management and wellness for aging in place.”

The combined volume of Qolsys, DSC, Bentel, Visonic, PowerG and Tyco products positions Johnson Controls as the market share leader in advanced security solutions worldwide.

Qolsys recently announced roadmap products including the IQ Hub, a lower-priced, third-generation IQ Panel; the IQ Router, a next-generation mesh networking solution to elegantly address the rapidly complex connected home; IQ Water, a connected water shutoff valve designed for mass market retrofit; and a fourth generation IQ Panel due in 2021 with Qualcomm chipset supporting AI, M2M and next generation connectivity.

Johnson Controls will offer Qolsys products throughout global markets. The IQ Panel 2 Plus and a full line of security and home automation devices are available today from Authorized Qolsys distributors.