Resideo Technologies has announced an agreement to acquire Snap One in a deal worth $1.4 billion including debt. The acquisition of the industry peer in the smart-home sector is expected to enhance Resideo’s position in security, audio visual, and smart living technology for both residential and commercial markets.
Resideo, based in Scottsdale, Arizona, will purchase Snap One, located in Charlotte, North Carolina, for $10.75 per share in cash. The merger is seen as a positive step by Resideo CEO Jay Geldmacher, who has been at the helm of the company since May 2020 and has overseen various acquisitions and divestitures. Geldmacher expressed excitement about the acquisition and its potential to transform Resideo through portfolio optimization, operational improvements, and cost-saving initiatives.
The acquisition of Snap One comes after Resideo completed the acquisition of home safety products company First Alert from Newell Brands for $593 million in cash in April 2022. The company’s product lineup includes items such as thermostats, security cameras, and water leak detection devices. Resideo stock recently broke out of a cup base at a buy point of $19.20 following a strong fourth-quarter performance that exceeded expectations and pushed the stock to $23.21 on March 21.
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