Santa Ana-based Universal Electronics Inc. has boosted its growing Internet of Things business with a $9 million purchase of certain assets from Residential Control Systems Inc.
UEI is the world’s largest universal remote control maker with sales of $651.3 million last year.
Rancho Cordova-based RCS designs and manufactures energy management and control products including programmable communicating thermostats, advanced HVAC controls, energy monitoring and control devices, gateways, and in-home displays, for the residential, commercial and hospitality sectors.
The value of the cash buy could rise if certain benchmarks are hit over the next five years. Assets acquired include product lines, inventory, intellectual property, engineering and development resources, sales and distribution relationships, and other elements used in RCS’ communication and smart thermostat business.
UEI plans to run the acquired business as a wholly-owned subsidiary and market the energy monitoring, thermostat, sensor products and services under the RCS brand.
UEI Shares are down less than 1% in afternoon trading to a market value of about $982 million.
The company is scheduled to report first quarter earnings after the close of intraday trading today.
