Assa Abloy, recognized as the largest lock manufacturer globally since the early 2000s, continues to expand its access control market by acquiring competitors. This year, the California-based smart lock company Level Lock has become Assa Abloy’s twelfth acquisition.
Strategic Shift for Level Home, Inc.
Level Home, Inc., the previous parent company of Level Lock, will shift its focus to the multifamily smart apartment platform, now renamed Ambient Technologies. According to a press release from Level, co-founders John Martin and Ken Goto will join Assa Abloy to further develop Level Lock, while Mike Rovito stays on as CEO of Level M. The financial details of the acquisition remain undisclosed by both companies.
Innovative Design of Level Smart Locks
Level smart locks are distinguished by their unique minimalist deadbolt design. The electronic components are integrated into the lock itself, allowing for a more compact structure that avoids the bulky external casings typical of other digital locks. As a result, these locks take up less than half the space compared to industry standards, making them nearly indistinguishable from traditional non-smart deadbolts.
Premium Pricing and Market Presence
However, this innovative technology comes at a premium price; the retrofit WiFi bolt is listed on Amazon at a significantly higher cost than many all-in-one smart locks from brands like Aqara or Yale, which often include keypad access for a lower price than the Level Lock Plus Connect. Level has achieved its high-end status through extensive research and development, aided by design expertise from former Apple employees. Despite this, the brand's impact on the smart lock market has been limited, reporting sales of only $16 million in the past year.
Enhancing Assa Abloy’s Portfolio
For Assa Abloy, acquiring Level Lock greatly enhances its extensive portfolio, which includes major US brands like Kwikset and Baldwin. This purchase could lead to Level Bolt and Lock Plus users finally receiving Matter support, which Level has been slow to implement. More likely, Assa Abloy will integrate the engineering patents of Level smart locks into its existing product lineup, similar to its approach after acquiring August Home in 2014.
Regulatory Challenges and Future Prospects
When Assa Abloy sought to acquire the Hardware and Home Improvement (HHI) division of Spectrum Brands, which included significant smart lock brands like Kwikset and Baldwin, it had to divest August and the US branch of Yale due to concerns from the DOJ about creating a “near-monopoly.” This resulted in an $800 million deal that sold August and Yale to Fortune Brands.
Just over a year later, Assa Abloy has resumed its strategy of acquiring access control startups, such as Level Lock. Given the small size of Level, it is unlikely the DOJ will challenge this acquisition. Assa Abloy is banking on Level’s patents to boost its smart lock offerings, providing a smoother transition for customers moving from mechanical locks to digital solutions.
Leading the Digital Lock Revolution
By taking control of what is arguably the most innovative brand in the locksmith industry, Assa Abloy positions itself ahead of its competitors in the access control market. With the future of locking mechanisms leaning towards digital solutions, Assa Abloy has firmly established its presence in this evolving landscape.
