Assa Abloy, the Stockholm-based company that owns the Yale brand of locks, announced a deal on Thursday to acquire smart home start-up August Home.
Terms were not disclosed, but it's likely a sizable exit for a Silicon Valley darling backed by Bessemer Venture Partners, Qualcomm, Liberty Mutual and others. The start-up raised $25 million as recently as the summer to expand its integration with other smart home products.
Assa Abloy, which also manages brands like Unilock, Keylock, Arrow and Mul-T-Lock, expects August Home's sales to reach $60 million this year.
August, which is known for its internet-enabled locks, has developed a cult following from the time it was founded. But the company has since partnered with mainstream brands like Wal-Mart. The retail giant is testing a service to deliver groceries right to customers' refrigerators. It also counts Airbnb, Amazon, Apple, Google, HomeAway and Nest as its partners.
Assa Abloy expects to close the deal during the fourth quarter.
Disclosure: Comcast Ventures is an investor in August Home. Comcast is CNBC.com's parent company.