Johnson Controls scoops up Scientech

Gains government applications expertise
Friday, February 1, 2002

MILWAUKEE-Johnson Controls increased its expertise in the systems integration market with the purchase of Scientech Security Services.

The acquisition provides Johnson Controls Government Systems division with a design-build security firm that specializes in government applications. The purchase price for the privately held company was not released.

"We already have Johnson Controls Government Systems as a huge part of the business," said Darryl Fortune, director of public relations for Johnson Controls. "We didn't have any specialty in the government security area and we foresaw that as a huge opportunity for us."

Scientech Security Services was part of Idaho Falls, Idaho-based Scientech Inc. The company ran the Gaithersburg, Md.-based security division for five years, building it from the ground up. In 2000, the security division reported revenues of $18 million.

"The decision was made to focus primarily on our two remaining businesses" of utility services and telecommunications, said Steve Irish, corporate information director for Scientech Inc.

Johnson Controls intends to tap into Scientech's government security expertise. The company already serves agencies such as the Federal Aviation Administration and has helped improve security for the U.S. Capital.

"We felt the Scientech acquisition strengthened our portfolio," said Fortune.

In a move to widen its building controls product line and market reach, Johnson Controls in November of 1998 acquired Cardkey Systems. That division is now known as Johnson Controls Cardkey Security Solutions and specializes in integrated access control, CCTV and intrusion detection systems for commercial customers.

Johnson Controls plans to keep the Scientech name for at least the near future, but long-term details have yet to be worked out. Company officials also plan to integrate Scientech's offices with existing Johnson Control locations.

Though both parties just announced the deal in mid-December, the purchase was completed in October after talks began during the spring of 2001. Company officials on both sides decided to hold off on publicizing the deal so as not to appear like the company was taking advantage of the Sept. 11 attacks.