Consolidations in security industry highlight importance of integrated solutions

Allegion-SimonsVoss and Kaba-Dorma mergers shake up Europe's market.

Europe's security industry has been undergoing significant consolidation over the past few months. First, Canon acquired Axis Communications for about $2.83 billion. Next, Dorma and Kaba agreed to merge to become the third-largest access control company in Europe, with $2 billion in annual revenues. Now, SimonsVoss is expected to be acquired by Allegion, creating Europe's second-largest access control firm.

While SimonsVoss is a relatively small company with €52 million in sales in 2014, it is also the world's largest supplier of digital cylinder locks. Most of the company's revenue is estimated to come from electronics locks and credentials. The acquisition is expected to allow SimonsVoss to more effectively expand in the North America market and for Allegion to address the Europe market with a broader portfolio.

According to IHS analyst Blake Kozak, the merger is part of a trend towards not only industry consolidation but creation of top-to-bottom integrated solutions. In fact, integration of access control with other security solutions like video surveillance is becoming more important with seamless integration.

See a comparison table of selected access control system suppliers on GlobalSources.com