Honeywell Sues to Stop Alarm.com’s $140 Million Acquisition Deal
Honeywell International Inc. has filed an antitrust action against the proposed merger of Alarm.com and Icontrol Networks.
According to Honeywell, the potential $140 million deal between the two smart home as a service providers would give Alarm.com a monopoly on the market.
Alarm.com announced its plans in June to acquire two of Icontrol’s units: Connect and Piper. Connect is a security and automation platform used by third parties and Piper makes a wireless automated video-monitoring device.
Comcast announced that it would acquire the rest of Icontrol in a separate deal.
According to the lawsuit, the merger would give Alarm.com a 70% share of the market for remote services for dealer-installed security systems making it “a classic violation of antitrust law”.
Law360 states that the merger would allow Alarm.com to charge higher prices for remote services to security dealers as well as demand third-party manufacturers of security hardware and smart-home devices work exclusively with Alarm.com.
The lawsuit also states that the merger could put Honeywell’s relationship with independent security system dealer ADT at risk as Honeywell has adapted its alarm systems to work with Icontrol remote services so Honeywell can continue to work with ADT.
If Alarm.com and Icontrol merge, Alarm.com has stated it will become the sole provider of remote services for ADT. This means Honeywell would have to update its alarm systems to become interoperable with Alarm.com.
Both Alarm.com and Icontrol are named as defendants in Honeywell’s action. The lawsuit was filed in the U.S. District Court of New Jersey.