The smart home market is still warming up and the legacy giants do not want to exclude: In the truest sense of the word. This morning, Assa Abloy, the 23 billion dollar heavy Swedish giant, who owns Yale and many other brands, announced 19459007 this morning that it is the American Smart Lock Maker August Home on new technology.

The terms of the deal will not be published, but we have asked both August and Assa Abloy and will update this post as soon as we learn more. Subject to regulatory approvals, the two companies expect the transaction to be completed by the end of the year.

August had about 75 million US dollar raised in risk capital financing, whereby the last round was concluded only in July of this year. Investors were a long list that included strategies like Japan's KDDI and Qualcomm as well as Maveron, Bessemer, Rho, Cowboy Ventures and a number of private investors.

Oddly, the only official note of the transaction came from Assa Abloy himself and not from August, and it is not clear whether co-founder and CEO Jason Johnson will join as part of the deal. (The other co-founder is Yves Behar, the well-known product designer, and it is not clear what role he will have.)

"I am very pleased to include August in the ASSA ABLOY Group," said Johan Molin, president and CEO of Assa Abloy. "This is a strategic addition to the group and strengthens our position in the market for intelligent residential doors.

"August Home strengthens our Smart Door strategy for private homes with complementary smart locks, the expansion of video door bells and comprehensive home delivery solutions," added Thanasis Molokotos.

Assa Abloy is the definition of an old armament giant, who now finds his steps in a new world characterized by the technology. The company has been operating in some form since 1881 (although the current listed company exists since 1994). The company employs 47,000 people and has an annual turnover of approximately 8 billion US dollars.

August has been in the area since 2013 and has 90 employees. In the emerging networked security room, however, it has become market leader with its smart home locks and door bells.

August has grown pretty fast over the past few years thanks to distribution agreements with mega-retailers in the US like Best Buy. In July, the hardware startup launched a $ 25 million series C with the intention of beefing the August Access program, the partner platform of the company. At the end of last month also found a partner in the mega retailer Wal-mart who announced his intention to use the company's connected locks as part of his delivery services. This agreement should, among other things, strengthen the international presence of August.

In an exchange with August early in the morning, the company announced that it will continue to operate under its existing brand, albeit as part of the US division of Assa Abloy. The news comes in a turbulent time for Assa Abloy – it announced earlier this month that CEO Johan Molin is considering leaving the company next year, although he is still prominent statements in support of the acquisition strategy and future of the company makes plans as you can see here.

We will update this post as we learn more.

SOURCES: TECHCRUNCH.COM GSMARENA.COM MACRUMORS.COM
WIRED.COM FIRSTPOST.COM ANDROIDCENTRAL.COM

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