03:13 PM EDT, 10/24/2024 (MT Newswires) -- Acuity Brands ( AYI ) said Thursday it has agreed to acquire audio, video and control platform QSC for about $1.22 billion in a bid to expand its intelligent spaces business.

The QSC platform offers applications across markets including education, commercial, hospitality, government, healthcare and transportation. QSC, which is headquartered in Costa Mesa, California, with a footprint in North America, Europe and Asia, saw about $535 million in sales for the 12 months ended Aug. 31, Acuity said.

"Our acquisition of QSC builds on our vision of data interoperability as we continue to make spaces smarter, safer and greener," Acuity Chief Executive Neil Ashe said in a statement. Acuity is a provider of lighting and building management solutions.

Separately, QSC said it will become part of Acuity's intelligent spaces group.

"Bringing QSC together with Acuity underscores the critical role (audio video) technology plays in live, hybrid, and virtual experiences," said QSC CEO Joe Pham.

Acuity expects to use $600 million of term-loan financing and cash to fund the deal, which is anticipated to close in the company's fiscal 2025 second quarter. The company expects the acquisition to be accretive to its 2025 adjusted per-share earnings.

Earlier this month, Acuity posted fourth-quarter results that topped market estimates amid double-digit revenue growth in the intelligent spaces segment.

The company said at the time it expected 2025 adjusted EPS in a range of $16 to $17.50 on sales of $3.9 billion to $4.1 billion. Analysts polled by Capital IQ are looking for normalized EPS of $16.82 on revenue of $4.01 billion.

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