Honeywell is acquiring Intermec, a manufacturer of automated identification and data capture products for specialized markets, for approximately $600 million, the companies said Monday.
Honeywell said it would use Intermec's technology, including rugged mobile computing devices and radio frequency identification products, to expand its product offerings in the auto identification and data capture industry.
"The agreement with Honeywell not only maximizes value for our stockholders, it combines our history of innovation and engineering expertise, global reach and leading products and solutions with the significant global scale and resources of Honeywell," said Allen Lauer, Intermec chairman and interim CEO, in a statement.
[Related: Intermec's Three Channel Tenets]
Everett, Wash.-based Intermec has been searching for a permanent CEO since May when then-CEO Patrick Byrne left the company after the company reported a $12.7 million loss. With the pending acquisition by Honeywell, the company said that search is being suspended.
Intermec launched a channel program in 2010 and at last report had nearly 1,500 reseller partners. A number of Hewlett-Packard veterans, including vice president of global channels Scott Anderson, manage Intermec's sales and channel operations.
Solution provider Denali Advanced Integration is a major mobility partner with Intermec and John Convery, Denali executive vice president of vendor relations and marketing, sees the acquisition as "very positive" for the channel.
He added that he had worked with the Intermec senior team from their HP days. "I hope they stay in place, because they understand the heartbeat of the channel," he said.
Honeywell is a giant conglomerate with a broad range of commercial and consumer products, engineering services and aerospace systems.
Honeywell is paying $10 per share for Intermec in an all-cash transaction, which the two companies said works out to approximately $600 million, net of cash and debt acquired. The $10 represents a 48 percent premium to Intermec's Nov. 1 closing stock price, the last day before Intermec announced that it had retained Bank of America Merrill Lynch to explore strategic alternatives, including a possible sale of the company.
Both companies' boards have approved the deal, but it is still subject to approval by Intermec's shareholders and regulatory approvals. The companies expect to complete the sale by the end of the second quarter of 2013.
PUBLISHED DEC. 10, 2012