Resideo to Purchase Snap One
Resideo Acquires Snap One for $1.4 Billion in Cash
Resideo, a leading provider of home comfort and security solutions, has announced its acquisition of Snap One for approximately $1.4 billion. The deal, which is expected to close in the second quarter of 2023, will provide financial flexibility for Resideo as they continue to transform and optimize their portfolio.
The transaction will augment ADI, Resideo's global distribution business, with industry-leading digital capabilities. Upon closing, Snap One will integrate into ADI's operations, combining their expertise in e-commerce and integrator support platforms. This combination is expected to create a true omni-channel experience for integrators, simplifying the buying experience and enhancing product availability.
Snap One, a pioneer in the smart living market, has grown from a startup built by entrepreneurial integrators to an industry leader in smart technology. They are known for delivering seamless experiences to consumers and high-quality services and support to integrators. The acquisition will leverage Snap One's proprietary product portfolio and product development expertise, providing broader availability through ADI's network of commercial and residential integrators and omni-channel capabilities.
Snap One generated 66% of its sales from proprietary products in 2023, offerings that typically carry significantly higher gross margins than third-party products. The acquisition is expected to drive increased value for integrators and financial returns.
The transaction values Snap One at $1.4 billion, a testament to the strategic and financial merits of the deal. The investment by Clayton, Dubilier & Rice underscores this sentiment.
"This is the right next step to capture new opportunities to bring our solutions to market," said John Heyman, Snap One's CEO. "The future of smart living is here, and we believe this transaction will deliver compelling value to our stakeholders and will create opportunities for our people and integrator partners."
Jay Geldmacher, Resideo's president and CEO, considers the acquisition an exciting step in Resideo's continued transformation. "The combination of ADI's strong position in security products distribution with Snap One's capabilities in the smart living market and Control4 technology platforms will provide integrators an increased selection of both third-party products and proprietary offerings," Geldmacher said.
The demand for connected technology products continues to grow, and Resideo is the right owner to drive Snap One's expansion, according to Snap One's CEO. The acquisition combines ADI's strong position in security products distribution with Snap One's capabilities in the smart living market.
The CEO of Snap One involved in the announced acquisition is Todd M. Crotzer. The transaction financing has been structured to allow Resideo to preserve financial flexibility for future strategic initiatives, and the combination is expected to be accretive to Resideo's non-GAAP EPS.
Resideo has agreed to acquire Snap One for $10.75 per share in cash. The acquisition is expected to drive increased value for integrators and financial returns, making it a significant move in the smart home market.
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