Resideo Technologies Inc. is making a major acquisition. Scottsdale, Ariz.-based Resideo is a manufacturer and distributor of room air temperature, quality, and humidity control and security systems primarily in residential dwellings.
A big reason Resideo is spending $1.4 billion in a stock and debt acquisition deal to acquire Snap One Holdings Corp. is ecommerce. Snap One manufactures audio visual, security, control, networking, and other “smart” products for homes and businesses.
“The future of smart living is here,” says Snap One CEO John Heyman. “Demand for connected technology products continues to grow, and Resideo is the right owner to drive our expansion.”
The companies expect to close the acquisition before the end of the year.
Resideo Technologies’ acquisition of Snap One
With the acquisition, Resideo gains a company with a strong presence in ecommerce. Snap One’s ecommerce capabilities and website enable installers, systems integrators, and contractors to:
- Research products
- Design projects
- Receive training and certifications
- Order products
- Solicit ongoing support
Snap One carries an inventory of about 3,300 SKUs in categories that include lighting, entertainment, infrastructure, security, control, surveillance, audio and networking. In 2023, Snap One generated total sales of about $1.1 billion, of which 60% were generated through ecommerce, the company says.
Ecommerce drives about 20% of all Resideo sales, which totaled $6.24 billion in 2023, the company says.
“ADI’s and Snap One’s professional integrators will benefit from significant synergy on go-to-market with Snap One’s ecommerce expertise and integrator support platforms and ADI’s 195 stocking locations and extensive digital capabilities,” Resideo says. “The combination is expected to create a true omni-channel experience for integrators, simplifying the buying experience and enhancing product availability.”
ADI refers to Resideo’s ADI Global Distribution segment. It distributes low-voltage security products including security, fire, access control and video products, and it participates significantly in the broader related markets of smart home, access control, power, audio, ProAV, networking, communications, wire and cable, enterprise connectivity, and structured wiring products. ADI had sales of $3.57 billion in 2023.
“The acquisition will combine Snap One’s capabilities for smart living integrators with ADI’s complementary position in adjacent security products distribution,” the company says. “This cross-category expansion will allow the combined organization to materially deepen relationships with integrators to better serve their customers and expand their businesses.”
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