Resideo Technologies, a residential security company created as a spin off of Honeywell's Homes and ADI Global Distribution businesses, has agreed to acquire Snap One, a provider of smart-living products and solutions. Snap One will integrate into Resideo's ADI Global Distribution business, a distributor of security, AV, and low-voltage products, following the deal's closure.
Under the terms of the acquisition agreement, Resideo will acquire Snap One for a transaction total of $1.4 billion inclusive of net debt at $10.75 per share. The transaction is expected to close in the second half of 2024.
"This is a significant next step in the ongoing transformation of Resideo into a higher growth, higher margin business serving our core customers and channels," said Jay Gelmacher, Resideo's President and CEO, during Resideo's April 15th conference call. "Together, we will have a strong presence in security, audio/visual, smart living products, and distributions serving residential and commercial markets. We are excited about the enhanced value proposition through increased product breadth, local availability, support services and broad market expertise, as well as the future opportunities this creates for integrators serving residential and commercial markets."
"ADI and Snap One are highly complementary businesses and together will meaningfully enhance our strategic and operational capabilities."
First emerging in 2005 as SnapAV, the company was founded by technology integrators who sought to produce easy-to-use smart solutions for homes and businesses. SnapAV launched alongside Control4, a provider of residential and commercial networking and automation systems. Following a merger between the two companies in 2019, the company rebranded to Snap One in 2021.
"Snap One has grown from a startup built by entrepreneurial integrators to an industry leader in smart technology, delivering seamless experiences to consumers and high-quality services and support to our integrators," said John Heyman, Chief Executive Officer of Snap One, in the official press release of the acquisition announcement. "This is the right next step to capture new opportunities to bring our solutions to market. Demand for connected technology products continues to grow, and Resideo is the right owner to drive our expansion. We believe this transaction will deliver compelling value to our stakeholders and will create opportunities for our people and integrator partners."
The purchase of Snap One is the latest in a line of several recent acquisitions by ADI Global, following BTX Technologies in 2023 and First Alert and Electronic Custom Distributors in 2022. Recent divestitures include Genesis Cable, which was sold by Resideo in late 2023 in a $87.5 million cash transaction.
By combining ADI Global's expertise within commercial markets with Snap One's network of residential integrators, Resideo hopes to expand product access to integrators across the security, smart living, and audio/visual technology markets.
Integrators will see an increased selection of proprietary offerings and third-party products following the merger. The cross-category expansion is meant to deepen relationships with integrators by combining Snap One's integrator capabilities with ADI's position as a global security distributor across 195 stocking locations.
Through ADI's OvrC platform, Control4's integrator base will also see greater levels of support services, rapid product fulfillment, and an expansion of exclusive offerings.
"The highly complementary nature of the two businesses creates opportunity to elevate Resideo's, and, specifically, ADI's, position in the market across multiple attractive growth categories," said Rob Aarnes, President of ADI Global Distribution. "Combined, we will serve integrators through omni-channel capabilities spanning extensive physical locations and establish e-commerce capabilities and support platforms."
The transaction was unanimously approved by Snap One and Resideo's Board of Directors. Required stockholder approval for the transaction was acquired in the form of written consent by Hellman & Friedman LLC, which holds 72% of Snap One's outstanding common shares.
Samantha Schober is Associate Editor at SecurityInfoWatch.com.
