Honeywell is buying Carrier Global's security division for $4.95 billion

Honeywell is buying Carrier Global Corp.'s security division for $4.95 billion as it looks to strengthen its building automation capabilities.

Carrier Global's Global Access Solutions business provides advanced access and security solutions, electronic locking systems, and contactless mobile key solutions. It has about 1,200 employees in 33 countries.

The all-cash deal includes hardware and software capabilities and the LenelS2, Onity and Supra brands.

Carrier Global said that it anticipates net proceeds of approximately $4 billion from the sale and plans to use the funds to pay down debt.

The transaction is expected to close by the end of 2024's third quarter.

Shares of Carrier Global rose nearly 6% before the market open on Friday, while Honeywell's shares declined more than 2%.