What’s a company to do if it’s building a strong AV control business (based on trendy Apple products), but has no residential and commercial lighting control systems?
You go shopping for one, of course.
Savant bought LiteTouch for its lighting control system including a broad range of keypad solutions. Savant expects it can easily sell in its channel any lighting controls that operate in concert with Apple iOS devices controlling connected home and commercial technologies.
What’s less clear, and unasked so far, is why parent Nortek sold Lite Touch. Nortek is best known for buying up companies, not divesting.You divest when you get an offer you can’t refuse (the buyer, Savant, is desperate and willing to pay over market value) or when you find the company problematic in your group of companies. Either it loses money, or you have no faith in management, or you project the market segment isn’t where you want to be.
While we are waiting for Nortek to answer these questions (and it’s a public company so some answers will be forthcoming), there’s another question: how much money or stock exchanged hands?
Just before Xmas 2011, Nortek named a new CEO from outside. It’s highly unlikely he instigated this deal in less than 8 weeks, but President and CEO Michael J. Clarke must have approved it. We’re guessing Savant coveted this company and paid well to get its hands on it. And Nortek figured it could use that money to acquire faster horses in the race. That’s a total guess…so let’s see how it pans out as answers unfurl.
Savant says its automation and control solutions will gain more visibility from electrical specifier/builder community due to the “powerful brand recognition of LiteTouch” in this market segment. Savant will continue to operate this new lighting control group out of the Salt Lake City, Utah area.