Resideo to Acquire Snap One to Expand Presence in Smart Living Products and Distribution

Resideo Technologies, a manufacturer and distributor of technology-driven products and solutions, and Snap One Holdings Corp., a provider of smart-living products, services, and software to professional integrators, today announced a definitive agreement pursuant to which Resideo has agreed to acquire Snap One for $10.75 per share in cash, for a transaction value of approximately $1.4 billion, inclusive of net debt. Upon closing, Snap One will integrate into Resideo's ADI Global Distribution business.

The transaction will combine ADI's strong position in security products distribution and Snap One's complementary capabilities in the smart living market and innovative Control4 technology platforms, which is expected to drive increased value for integrators and financial returns. Together, ADI and Snap One will provide integrators an increased selection of both third-party products and proprietary offerings through an extensive physical branch footprint augmented by industry leading digital capabilities.

"The acquisition of Snap One is an exciting step in Resideo's continued transformation through portfolio optimization, 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. 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 optimize 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."

"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. "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."

"We are excited to support Resideo on this highly strategic acquisition and in their ongoing transformation," commented Nathan Sleeper, CD&R's Chief Executive Officer. "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."

The transaction is valued at approximately $1.4 billion, including forecasted net debt of Snap One at the closing of approximately $460 million. This represents a 7.4x multiple on Snap One's Adjusted EBITDA for the twelve months ended December 29, 2023, as further adjusted by including Resideo's projected annual run-rate synergies of $75 million.

The transaction is expected to be completed in the second half of 2024, and is subject to customary closing conditions, including receipt of applicable antitrust and other regulatory approvals. The transaction has been unanimously approved by the Boards of Directors of Resideo and Snap One. Private investment funds managed by Hellman & Friedman LLC, holding approximately 72% of the outstanding common shares of Snap One, have executed a written consent to approve the merger, thereby providing the required stockholder approval for the transaction.

Featured

  • Evolving Cybersecurity Strategies: Uniting Human Risk Management and Security Awareness Training

    Organizations are increasingly turning their attention to human-focused security approaches, as two out of three (68%) cybersecurity incidents involve people. Threat actors are shifting from targeting networks and systems to hacking humans via social engineering methods, living off human errors as their most prevalent attack vector. Whether manipulated or not, human cyber behavior is leveraged to gain backdoor access into systems. This mainly results from a lack of employee training and awareness about evolving attack techniques employed by malign actors. Read Now

  • Report: 1 in 3 Easily Exploitable Vulnerabilities Found on Cloud Assets

    CyCognito recently released new research highlighting critical security vulnerabilities across cloud-hosted assets, revealing that one in three easily exploitable vulnerabilities or misconfigurations are found on cloud assets. As organizations increasingly shift to multi-cloud strategies, the findings underscore significant security gaps that could provide attackers with potential footholds into networks. Read Now

  • Built for Today, Ready for Tomorrow

    Selecting the right VMS is critical for any organization that depends on video surveillance to ensure safety, security and operational efficiency. While many organizations focus on immediate needs such as budget and deployment size, let us review some of the long-term considerations that can significantly impact a VMS's utility and flexibility. Read Now

  • Paving the Way to Smart Buildings

    In today's rapidly evolving security landscape, the convergence of on-prem, edge and cloud technologies are critical. The physical security landscape is undergoing a profound transformation, driven by the rapid digitalization of buildings and the evolving needs of modern organizations. As the buildings sector pivots towards smart, AI and data-driven operations, the integration of both edge and cloud technology has become crucial. Read Now

  • The Cybersecurity Time Bomb

    If you work in physical security, you have probably seen it: a camera, access control system, or intrusion detection device installed years ago, humming along without a single update. It is a common scenario that security professionals have come to accept as "normal." But here is the reality: this mindset is actively putting organizations at risk. Read Now

New Products

  • Mobile Safe Shield

    Mobile Safe Shield

    SafeWood Designs, Inc., a manufacturer of patented bullet resistant products, is excited to announce the launch of the Mobile Safe Shield. The Mobile Safe Shield is a moveable bullet resistant shield that provides protection in the event of an assailant and supplies cover in the event of an active shooter. With a heavy-duty steel frame, quality castor wheels, and bullet resistant core, the Mobile Safe Shield is a perfect addition to any guard station, security desks, courthouses, police stations, schools, office spaces and more. The Mobile Safe Shield is incredibly customizable. Bullet resistant materials are available in UL 752 Levels 1 through 8 and include glass, white board, tack board, veneer, and plastic laminate. Flexibility in bullet resistant materials allows for the Mobile Safe Shield to blend more with current interior décor for a seamless design aesthetic. Optional custom paint colors are also available for the steel frame.

  • Connect ONE’s powerful cloud-hosted management platform provides the means to tailor lockdowns and emergency mass notifications throughout a facility – while simultaneously alerting occupants to hazards or next steps, like evacuation.

    Connect ONE®

    Connect ONE’s powerful cloud-hosted management platform provides the means to tailor lockdowns and emergency mass notifications throughout a facility – while simultaneously alerting occupants to hazards or next steps, like evacuation.

  • Unified VMS

    AxxonSoft introduces version 2.0 of the Axxon One VMS. The new release features integrations with various physical security systems, making Axxon One a unified VMS. Other enhancements include new AI video analytics and intelligent search functions, hardened cybersecurity, usability and performance improvements, and expanded cloud capabilities