Snap One is a key player in smart-living products and services, and the acquisition, valued at approximately $1.4 billion, including net debt, will see Resideo purchasing Snap One for $10.75 per share in cash.
Upon completion, Snap One will integrate into Resideo’s ADI Global Distribution business. This strategic move aims to capitalise on ADI’s strong position in security products distribution and Snap One’s expertise in the smart living market and innovative Control4 technology platforms.
The merger is expected to bring added value to integrators and improve financial returns. By combining ADI’s distribution network with Snap One’s technology platforms, integrators will gain access to an expanded selection of third-party products and proprietary offerings.
This broader range of products will be available through an extensive physical branch network, bolstered by cutting-edge digital capabilities, further solidifying Resideo’s foothold in the smart living products and distribution landscape.
“The acquisition of Snap One is an exciting step in Resideo’s continued transformation through portfolio optimisation, operational enhancements and structural cost savings actions,” commented Jay Geldmacher, Resideo’s President and Chief Executive Officer.
“ADI and Snap One are highly complementary businesses and together will meaningfully enhance our strategic and operational capabilities as a significant player in attractive growth categories. 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.”
He continued: “In addition, the investment by Clayton, Dubilier & Rice is a testament to the strategic and financial merits of this transaction and provides financial flexibility as we continue to transform and optimise our portfolio. We look forward to the ADI and Snap One teams working together to drive value for all stakeholders through executing on the substantial business and financial synergies we see in combining the two businesses.”
John Heyman, Chief Executive Officer of Snap One, also commented, saying: “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.”
He explained: “This is the right next step to capture new opportunities to bring our solutions to market. The future of smart living is here. 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.”
Nathan Sleeper, CD&R’s Chief Executive Officer, added: “We are excited to support Resideo on this highly strategic acquisition and in their ongoing transformation. I look forward to joining Resideo’s Board of Directors and supporting the business as it executes on this transaction and the significant opportunity we see available over the coming years.”
Benefits of the Transaction:
- Strengthened Position Across Categories
- Expansion of Proprietary Offerings
- Enhanced Integrator Value Proposition
- Attractive Financial Profile
Transaction Details:
- Valued at approximately $1.4 billion
- Expected to close in the second half of 2024
- Subject to customary closing conditions and regulatory approvals
- Supported by committed debt financing and a $500 million perpetual convertible preferred equity investment from Clayton, Dubilier & Rice LLC (CD&R).
