Resideo Technologies has agreed to acquire Snap One in a deal worth $1.4 billion including debt. The acquisition is expected to bring together two industry peers in the smart-home sector and 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. Despite the acquisition, Resideo stock dropped by 3.5% to $20.34 while Snap One stock surged by 29.5% to $10.54 on the news of the deal.
Resideo CEO Jay Geldmacher expressed his enthusiasm about the acquisition as he sees it as a positive step in the company’s transformation through portfolio optimization, operational improvements, and cost-saving initiatives. Geldmacher has been at the helm of Resideo since May 2020 overseeing various acquisitions and divestitures.
In April 2022, Resideo completed the acquisition of home safety products company First Alert from Newell Brands for $593 million in cash. 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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