After years a growth and expansion that included its own laundry list of technology acquisitions – see: HCA Distributing, MRI, Control4, Parasol, Access Networks and Clare Controls to name a few – Snap One finds itself in the position of being the desired purchase by a larger conglomerate. Resideo Technologies, Inc., a manufacturer and distributor of technology-driven products and solutions, announced that it plans to acquire Snap One in a deal valued at around $1.4 billion. Once closed, Snap One will integrate into Resideo’s ADI Global Distribution business.
According to Resideo, ADI, a security solutions distributor, and Snap One will seamlessly complement one another by providing integrators with an increased selection of both third-party and proprietary offerings through an “extensive branch footprint augmented by industry leading digital capabilities.”
“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,” John Heyman, Chief Executive Officer of Snap One, said in a statement announcing the acquisition. “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.”
For the integrator, the move will expand the ease of access to the Snap One portfolio, immediately placing their product in 195 ADI stocking locations across the country in addition to their extensive digital platform. Further, it opens the opportunity to explore cross-category expansion with the security solutions that previously made up the ADI portfolio – something that should excite integrators actively expanding into the light commercial space and those who’ve considered making the leap.
In an industry where technology seems to evolve at a tremendous pace, the professionals that install those products tend to be fairly particular and uneasy when it comes to change. There’s a certain level of comfort in working with brands and individuals that you’re familiar with – something that mergers and acquisitions can often throw for a loop. But looking at the bigger picture with this particular situation, it’s a testament to the growing importance and validation of the smart home market.
“It’s the nature of a growing industry. When it hits the mature phase, mergers and acquisitions increase to accelerate growth,” Jason Sayen, owner of I Am Sayen, said in a post on LinkedIn reacting to the news. “The big picture is that it promotes and validates our industry as well as solidifies the importance of technology in the home. As a customer of either company, there will be pros and cons, but my advice would be to focus on what you can control, and your business will be just fine.”
The transaction is expected to close during the second half of this year.