Universal Electronics Acquires RCS Technology to expand IoT and energy monitoring product lines

Universal Electronics (UEI), a provider of universal control and sensing technologies for the smart home, has entered into an agreement to acquire certain assets of Residential Control Systems (known as “RCS Technology”) – a designer and manufacturer of energy management and control products for the residential, commercial and hospitality markets.

Through this acquisition, UEI will expand its product portfolio of home sensing, monitoring and control solutions to include programmable communicating thermostats (PCTs), advanced HVAC controls, energy monitoring and control devices, gateways, in-home displays and user interfaces.

“This acquisition builds on our existing business with original equipment manufacturers in HVAC, giving us an expanded capability in delivering traditional and wireless thermostats, room air controllers, and wireless remotes to customers such as Daikin, Fujitsu and Panasonic,” said Paul Arling, UEI’s Chairman and CEO.

“The addition of RCS brings new smart thermostat, sensing and monitoring products to our international market through our global sales, manufacturing, and distribution channels,” Arling added.

The smart thermostat market is projected to have accelerated growth over the next five years, driven by several factors: advancements in communication technologies; consumer interest in home automation and monitoring; a push for energy conservation; and the growth of utility and government-sponsored programs. According to data from Navigant Research, the global market for smart and communicating thermostats is expected to double in size, from $1.1 billion in 2016 to $2.2 billion in 2020, with the largest growth forecasted in North America.

RCS supplies smart communicating thermostats to original equipment manufacturers (OEM). RCS delivers innovative thermostat products to major HVAC manufacturers as well as companies in security and home automation such as ADT and Nexia Home Automation Systems.

“Our growth has been driven largely by a focus on quick development for accelerated time to market, using local, responsive engineering design and production teams, as well as a broad product portfolio including Z-Wave®, ZigBee® and Wi-Fi® technologies,” stated Michael Kuhlmann, RCS President and CEO.

The purchase price for the acquisition of RCS assets will be approximately $9 million in cash plus incentive-based cash consideration to be paid over the next five years. RCS’ acquired assets include product lines, inventory, intellectual property, engineering and development resources, sales and distribution relationships, and other assets used in its communication and smart thermostat business.

UEI intends to operate the acquired business as a wholly-owned subsidiary and market the energy monitoring, thermostat, sensor products and services under RCS brands and its trademarks, building upon RCS’ many years of experience, expertise and innovation in the industry.