Honeywell has signed an agreement to acquire the privately held supply chain and warehouse automation firm Intelligrated for $1.5 billion.

The transaction is expected to close by the end of the third quarter of this year.

Upon approval, Intelligrated will be part of Sensing and Productivity Solutions (S&PS) in Honeywell’s Automation and Control Solutions business.

Intelligrated develops and installs complete warehouse automation solutions, software and services that result in smarter distribution and fulfillment operations. Its supply chain and warehouse solutions drive improved productivity and lower costs for retailers, manufacturers, and logistics providers around the world.

The company has grown at a compound annual growth rate (CAGR) of approximately 13 percent over the past three years, faster than the industry overall. The company’s 2016 sales are estimated to be approximately $900 million.

Intelligrated has a large and growing customer base of more than $5 billion, including leading Fortune 500 retailers, manufacturers and logistics providers worldwide, top consumer products companies, 30 of the top 50 U.S. retailers, and half of the top 100 internet retailers.

“Ecommerce continues to grow at an unprecedented rate and customer demands for faster delivery times have created a need for warehouse, logistics and fulfillment solutions that can increase productivity and lower costs for our customers,” said Alex Ismail, president and CEO of Honeywell Automation and Control Solutions. “This acquisition fits with our vision for a connected industrial company and a connected worker.”

“Intelligrated’s leading supply chain automation solutions are a fantastic complement to Honeywell’s portfolio of workflow performance solutions,” added John Waldron, president of Honeywell Sensing and Productivity Solutions, “including cloud-connected mobile worker applications, high-performance data collection hardware, and other technologies to improve worker productivity.”

Intelligrated, headquartered in Mason, Ohio, employs more than 3,100 people in offices located across the United States, Canada, Mexico, Brazil and China. The company was founded in 2001 and grew quickly via organic growth and strategic acquisitions.

Honeywell Sensing and Productivity Solutions provides enterprise and workflow performance solutions, custom-engineered sensors, switches and controls.