Leviton acquires OnQ Technologies

Jan. 22, 2003
Jan. 22, 2003 - OnQ will be joined with structured wiring division.

Leviton Manufacturing Co. has acquired OnQ Technologies, Inc., a supplier of structured wiring and home networking technology.

"The purchase of OnQ Technologies is part of an ongoing process to support Leviton's growth as a leading supplier of home networking and residential products," says Harold Leviton, president of Leviton Manufacturing Co.

OnQ will be joined with Leviton Integrated Networks, the company's existing structured wiring division, to create Leviton OnQ. With a combined market share of nearly 50%, the new division is poised to become an important supplier in the growing structured-wiring market. Doug Fikse, president of OnQ Technologies, has been named president of the new wholly owned subsidiary, Leviton OnQ.

Structured-wiring systems provide the physical backbone for residential voice and data networks, including high-speed Internet distribution, whole-house audio and video systems, security systems, lighting controls and home automation applications. The market for structured wiring systems is expected to exceed $500 million by 2004, according to research by Parks Associates, a consulting firm that studies emerging residential technologies and services.

"Structured wiring is rapidly becoming an essential 'fourth utility' in homes, alongside electrical, gas and phone service," says Don Hendler, executive vice president of Leviton. "That's why we view this acquisition as critical to our future growth."

Integration of the two organizations will occur gradually. For now, Leviton and OnQ will run in parallel, and existing relationships with channel partners will remain in place.

"Over time, we expect to blend the two organizations together, taking the best that each has to offer," says Fikse. He added that this venture is going to create many new opportunities as the market expands.

Fikse says the new venture is designed to promote growth and stability of the structured media market.

"Builders have been looking to manufacturers for leadership in the structured wiring arena -- especially in the area of increasing consumer awareness and demand," says Fikse. "Until now, no one has had the capability to launch a sustained educational effort targeted at consumers. With our combined strengths, Leviton OnQ will be able to meet this challenge."

"Builders also want the security of dealing with a company that will be around a long
time--a company they know," Fikse adds. "Leviton's name will give builders even more confidence in the future of structured wiring."

The acquisition is designed to combine key strengths from both organizations, Hendler says. "Leviton has strong relationships with builders, electrical contractors, distributors, home centers and retail chains. OnQ has similar relationships with security, audio/video and other low-voltage partners. Leviton has global manufacturing facilities and the strength of a global organization. OnQ brings in the culture of an entrepreneurial, nimble organization."

Leviton, based in Little Neck, N.Y., was founded in 1906. It manufactures wiring devices. The company has global manufacturing facilities that produce more than 3 million products every day.

OnQ Technologies, based in Middletown, Pa., pioneered the field of residential structured wiring. Created in 1991 as part of AMP Inc., it developed the Smart House--the first commercially viable whole-house infrastructure for telecommunications, entertainment and control--in cooperation with the National Association of Home Builders. When Tyco International acquired AMP in 1999, the OnQ division was sold to the founding team.

Terms of the deal were not disclosed. Both firms are privately held. For more information visit www.onqtech.com.

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