Honeywell To Acquire Majority Stake In Fiplex, Expanding Its Public Safety Wireless Communications Portfolio For Buildings

Rhea-AI Summary

Honeywell (NYSE: HON) has agreed to acquire a majority stake in Fiplex Communications, Inc., a Miami-based developer of in-building communication systems. This acquisition aims to enhance Honeywell's connectivity and communication offerings, particularly for public safety. Fiplex's bi-directional amplifiers (BDAs) will aid first responders by improving radio coverage in buildings with challenging environments. The growth of the in-building communications market is driven by new fire codes and technology adoption, promising innovation and safety enhancements. Financial terms of the deal were not disclosed.

Positive

• Acquisition enhances Honeywell's portfolio in public safety and in-building communications.
• Fiplex's technology will drive innovation for Honeywell's wireless solutions.
• Increased market demand for improved communications due to new fire codes.

Negative

• None.

ATLANTA, March 10, 2021 /PRNewswire/ -- Honeywell (NYSE: HON) has signed an agreement to acquire a majority stake in Fiplex Communications, Inc., a Miami-based company that develops in-building communications systems, including bi-directional amplifiers (BDAs) that provide continuous and critical in-building radio coverage in challenging environments to improve the safety of first responders and building occupants.

Honeywell has signed an agreement to acquire a majority stake in Fiplex Communications, Inc.

The acquisition will expand the in-building connectivity and communications solutions that Honeywell provides to its customers. Fiplex's solutions will become a platform of innovation for Honeywell wireless technologies.

The building communications industry is a fast-growing segment, largely driven by the adoption of enhanced fire codes. Its growth is expected to accelerate with the adoption of advanced technologies that will continue to change how building data is exchanged with various stakeholders.

"We are looking to reshape how communications and connectivity within buildings work. The addition of Fiplex's products and software allows us to move toward creating the next generation of fire and life safety solutions to keep both building occupants and first responders safer," said Vimal Kapur, president and chief executive officer, Honeywell Building Technologies. "The Fiplex team brings superior engineering talent and unique capabilities for wireless communications that will enable us to enhance our in-building communications offerings and complement our innovative, industry-leading solutions."

According to a 2017 International Association of Fire Chiefs (IAFC) survey by the Safer Buildings Coalition, 56% of fire departments have experienced a communications failure in a building during an emergency event, leaving firefighters and other first responders virtually stranded in these situations after losing communications. In-building communications systems, like those from Fiplex, enable first responders to stay connected throughout a building that may have a poor cellular signal due to Low-E glass windows, energy-saving cladding or wall composition, and even in underground areas such as car parks. In-building communications can also support occupant safety with timely, clear and accurate notifications of emergencies and recommended responses.

"Honeywell has long demonstrated leadership in the fire and life safety industry, and we are pleased to join their team," said Matias de Goycoechea, chairman and chief technology officer, Fiplex. "We look forward to working with Honeywell to expand our technological advancements and to support the creation of better-connected buildings."

Fiplex's FLEX™ is a flexible and scalable in-building wireless platform that delivers the highest levels of performance, survivability and deployment efficiency to meet the requirements of public safety stakeholders. FLEX addresses performance and complexity challenges inherent to complying with stringent critical communications code requirements mandated by Authorities Having Jurisdiction (AHJs) as well as economic barriers that encumber solutions providers from widescale penetration. The platform's true mission-critical performance and software-defined configuration deliver better field deployment flexibility.

Fiplex's FLEX products are UL2524 2nd edition listed with SGS, the only Nationally Recognized Testing Laboratory (NRTL) approved by OSHA for UL2524.

Terms of the investment were not disclosed, and there is no change to Honeywell's financial outlook as a result of the acquisition. The acquisition is pending customary deal closing conditions.

About Fiplex
For over 35 years, Fiplex has been a leader in mission-critical solutions for indoor public-safety communications. The company's innovative and high-quality portfolio of BDA (bi-directional amplifier) and Fiber DAS (distributed antenna system) solutions deliver proven code-compliant performance and mitigate the complexity of designing, installing and managing wireless networks. With products successfully deployed in buildings and venues – including some of the busiest transit systems – within nearly 30 countries, Fiplex meets the public safety industry's mission to ensure critical communications whenever and wherever needed.

About Honeywell Building Technologies
Honeywell Building Technologies (HBT) is a global business with more than 18,000 employees. HBT creates products, software and technologies found in more than 10 million buildings worldwide. Commercial building owners and operators use our technologies to help create safe, energy efficient, sustainable and productive facilities. For more news and information on Honeywell Building Technologies, visit http://www.honeywell.com/newsroom.

Honeywell (www.honeywell.com) is a Fortune 100 technology company that delivers industry specific solutions that include aerospace products and services; control technologies for buildings and industry; and performance materials globally. Our technologies help aircraft, buildings, manufacturing plants, supply chains, and workers become more connected to make our world smarter, safer, and more sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom.

This release contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.

Contacts:
Media	Investor Relations
Megan McGovern	Mark Bendza
(470) 449-6313	(704) 627-6190
Megan.McGovern@Honeywell.com	Mark.Bendza@honeywell.com

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SOURCE Honeywell

FAQ

What is Honeywell's acquisition of Fiplex about?

Honeywell is acquiring a majority stake in Fiplex Communications to expand its in-building communications solutions, particularly for public safety.

How will the acquisition of Fiplex impact Honeywell's stock (HON)?

The acquisition is not expected to change Honeywell's financial outlook immediately, but it could enhance market position in the long term.

What technologies does Fiplex provide that benefit Honeywell?

Fiplex specializes in bi-directional amplifiers (BDAs) and wireless communication technologies that improve connectivity for first responders in buildings.

When was the acquisition of Fiplex announced?

The acquisition agreement was announced on March 10, 2021.

What are the anticipated benefits of the Fiplex acquisition for Honeywell?

The acquisition is expected to enhance in-building communication safety, innovation, and compliance with emerging fire safety regulations.