UTC, which acquired Chubb in 2003, has also announced its intentions of divesting its manned guarding businesses in the UK and Australia.
Blackburn, Lancs-based Initial Electronic Security Group (IESG) reported sales of approx GB pound 300 million in 2006. It also has operations in the Netherlands, France and the US and employs 3,400 people in more than 100 branch locations.
The company specialises in integrated security systems, intruder detection, CCTV, access control and security software.
The acquisition is subject to the satisfaction of customary conditions, regulatory approval and discussions with employee works councils in Europe.
George David, chairman and CEO of UTC, said: “This acquisition strengthens particularly our position in Europe and expands our product and service offerings to a broader range of customers there”.
He said the company has “significant presence in national markets” and the acquisition strengthens its position in Europe where it will be able expand its product and services offerings.
By divesting of “low technology manned guarding businesses” it would give UTC’s fire and security portfolio “higher margin and growth opportunities”.
Since it acquired Chubb, the company has divested four national manned guarding businesses with total revenues of GB pound 100 million.
Based in Connecticut, UTC is a diversified company providing services to the building and aerospace industries. UTC Fire & Security provides fire safety and security solutions to more than one million customers worldwide.