The U.S. Federal Trade Commission (FTC) has finally given a
green signal to diversified industrial goods manufacturer
Honeywell International Inc.
) acquisition of mobile computing device maker
). The acquisition was originally approved by the European Union
in June and was stuck due to pending regulatory approvals by FTC.
The $603.4-million transaction was cleared on the condition that
Honeywell will license some Intermec patents to one of its rivals
in barcode scanner to ensure a competitive market.
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Headquartered in Everett, Wash., Intermec manufactures radio
frequency identification (RFID) readers, pressure-sensitive bar
code labels, thermal transfer ribbons, RFID smart labels, as well
as fixed, desktop, and portable barcodes. Two-dimensional scan
engines translate barcodes into digital data for computers, which
are then used by retail stores, kiosks and rugged mobile handheld
computers to interpret and analyze.
Post-acquisition, the FTC mandate will require Honeywell to
license patents that are used to make two-dimensional bar code
scanners to Intermec's competitor, Italy-based Datalogic SpA, for
the next 12 years. This would enable Datalogic to foray into the
U.S. market and restore the competitive market lost due to the
Based in Morris Township, N.J., Honeywell manufactures a wide
range of aerospace products and services, control, sensing and
security technologies for buildings, homes and industry,
turbochargers, automotive products, specialty chemicals,
electronic and advanced materials, process technology for
refining and petrochemicals and energy efficient products and
solutions for homes, business and transportation.
Honeywell organizes its business into four operating segments -
Aerospace, Automation and Control Solutions, Performance
Materials and Technologies, and Transportation Systems.
Honeywell's diversified business portfolio mitigates operating
risks and enables it to earn consistent above-average returns.
Honeywell currently has a Zacks Rank #3 (Hold). Other players in
the industry worth mentioning include
Federal Signal Corp.
), both carrying a Zacks Rank #2 (Buy).