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Gentex (NASDAQ: GNTX ) is accelerating its efforts in the vehicle-based remote control segment. The company announced it has signed a definitive agreement with car-parts supplier Johnson Controls (NYSE: JCI ) to acquire the latter's HomeLink unit. This is described by Gentex as "a vehicle-based control system that enables drivers to remotely activate garage door openers, entry door locks, home lighting, security systems, entry gates, and other radio frequency convenience products." According to Gentex, it can function with nearly all automatic garage door openers.
The price of the deal is $700 million.
HomeLink's owner-to-be is very familiar with the system -- Gentex has been integrating it into its signature automatic-dimming rearview mirrors for over a decade. The company estimates that, once fully integrated, HomeLink will contribute $125 million-$150 million in annual revenue.
The transaction is subject to approval from the relevant regulators. Gentex expects it to close "on or about" September 30 of this year.