ADI ready to 'Snap' into place

MELVILLE, N.Y. – Resideo Technologies picked up Snap One Holdings on April 15 for $1.4 billion in a move that will combine the Control4 technology platforms of Resideo subsidiary ADI Global in the security market with Snap One's capabilities in the smart living market. The deal is off to a great start: Moody’s Investor Service described it as “credit positive” and Snap One’s shares gained 29% following the announcement. “The highly complementary nature of the two businesses creates opportunity to elevate our position in the market across multiple growth categories and drive enhanced customer value,” said Rob Aarnes, president of ADI. “We’ll be able to expand sales across categories core to each business, including security, life safety, entertainment and home automation. Additionally, we see opportunities to expand our reach by leveraging ADI's capabilities serving commercial markets with Snap One's strong position across its residential focused integrators.”  The deal is expected to close sometime in the second half of 2024. Aarnes says the combined companies also provide an opportunity to expand the Snap One OvrC support platform to a broader integrator base and enhance value within the Control4 integrator base through increasing service levels, rapid product fulfillment and the expansion of exclusive offerings. “We see significant opportunity from providing broader availability of Snap One's proprietary products through ADI's distribution network,” he said. “All enhanced with the ability to increase customer access and availability to innovative products and services through omni-channel capabilities, including a large network of physical locations and extensive e-commerce and digital capabilities.” Aarnes couldn’t comment on the deal’s impact on Resideo’s financial results for the rest of the year, but he expects the combined companies will improve a number of financial metrics going forward and the deal will be accretive to both Resideo’s and ADI’s overall growth rate.