Smart lock company August gets acquired

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Assa Abloy, the world’s largest lock manufacturer, is buying smart lock company August Home, according to TechCrunch.

Terms of the deal, which is expected to close before the end of the year, were not announced, and August will continue to operate as its own brand for the time being as part of Assa Abloy’s US division.

As one of the leading names in the smart lock space, August will be a useful addition to Assa Abloy’s portfolio. August offers an array of smart lock products aimed at a variety of price levels, and has created an infrastructure to market and distribute its locks that includes deals with major technology retailers like Best Buy, which have helped the company establish a steady revenue stream that Assa Abloy expects to grow to $60 million in 2018.

It’s unclear how this acquisition will impact some of August’s ongoing projects, especially its tests with Walmart. The companies are collaborating on a trial that uses smart locks to allow a delivery driver to enter a home to deliver a product rather than leave it on the doorstep. A larger agreement on this type of service — Amazon is also looking into a similar procedure — could drive smart lock adoption to new levels, offering consumers a compelling use for the devices that opens up a totally new possibility.

And as a much larger company, Assa Abloy could be in a better position to make such collaborative pacts than a smaller startup like August on its own, offering a better chance to scale a trial up. It will also have the capacity to produce smart locks in sufficient numbers, and at prices that are palatable for consumers, who often find smart home devices too expensive.

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