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Russound, Colorado vNet: Control Manufacturers Weigh in
NuVo, HomeLogic and Control4 weigh in on the high-profile merger.
Russound CEO Charlie Porritt with Russound owner Maureen Baldwin
When Russound’s acquisition of Colorado vNet was first reported, Russound CEO Charlie Porritt talked about the value of being a control manufacturer.
One of Russound’s goals is to offer controls solutions for security, lighting and thermostats. “This acquisition immediately gives us access to offering home control through a company that we will own and control, and the ability to merge some of that control technology into Russound products," he said.
Now that the acquisition is complete, it’ll be interesting to see how Colorado vNet evolves under Russound and how Russound fits in the home automation market.
“Colorado vNet appears to have a fine lighting and multiroom audio solution, [but] I’m not sure they have the kind of complete product line necessary to compete against other established companies,” says David Rodarte, NuVo CEO.
He speculates that Russound will have to invest “significantly more dollars into the business than the cost of the acquisition.” Russound hasn’t revealed the terms of the acquisition.
In general, Russound’s acquisition of Colorado vNet is good for the automation market, says Glen Mella, Control4 president and COO. He calls it “another validation of the current market opportunity for home automation and control,” adding that Control4 has great respect for Colorado vNet products and is “pleased to see them maintain operations.”
How Colorado vNet maintains operations under Russound, though, will be tracked closely. The two companies “have employed markedly different go-to-market strategies to date,” Rodarte points out.
“Colorado vNet employed a dealer-direct business model, while Russound has been focused on a strong distributor channel," Rodarte adds. "It will be interesting to see how the customer bases of both companies respond to this acquisition and the resulting go-to-market strategy of the combined entity.”
Porritt has said that the two organizations will remain separate in terms of sales and distribution.
There’s also the question of whether or not Russound is burning essential bridges. With the acquisition of Colorado vNet, “Russound would appear to be preparing to compete directly against the same automation companies with whom it historically has cooperated in terms of product compatibility,” Rodarte says.
"Will they and automation companies continue to play nice, will they both erect barriers to compatibility, or will they try to do both?”
HomeLogic is one automation manufacturer that integrates Russound products. Joe Lautner, VP of sales, says it isn’t phased by the acquisition. “With our sister company ELAN, we look forward to maintaining our relationship with Russound and continuing to work with them as appropriate.”
One of Russound’s goals is to offer controls solutions for security, lighting and thermostats. “This acquisition immediately gives us access to offering home control through a company that we will own and control, and the ability to merge some of that control technology into Russound products," he said.
Now that the acquisition is complete, it’ll be interesting to see how Colorado vNet evolves under Russound and how Russound fits in the home automation market.
Product Mix
“Colorado vNet appears to have a fine lighting and multiroom audio solution, [but] I’m not sure they have the kind of complete product line necessary to compete against other established companies,” says David Rodarte, NuVo CEO.
He speculates that Russound will have to invest “significantly more dollars into the business than the cost of the acquisition.” Russound hasn’t revealed the terms of the acquisition.
In general, Russound’s acquisition of Colorado vNet is good for the automation market, says Glen Mella, Control4 president and COO. He calls it “another validation of the current market opportunity for home automation and control,” adding that Control4 has great respect for Colorado vNet products and is “pleased to see them maintain operations.”
Going to Market
How Colorado vNet maintains operations under Russound, though, will be tracked closely. The two companies “have employed markedly different go-to-market strategies to date,” Rodarte points out.
“Colorado vNet employed a dealer-direct business model, while Russound has been focused on a strong distributor channel," Rodarte adds. "It will be interesting to see how the customer bases of both companies respond to this acquisition and the resulting go-to-market strategy of the combined entity.”
Porritt has said that the two organizations will remain separate in terms of sales and distribution.
Industry Shakeup?
There’s also the question of whether or not Russound is burning essential bridges. With the acquisition of Colorado vNet, “Russound would appear to be preparing to compete directly against the same automation companies with whom it historically has cooperated in terms of product compatibility,” Rodarte says.
"Will they and automation companies continue to play nice, will they both erect barriers to compatibility, or will they try to do both?”
HomeLogic is one automation manufacturer that integrates Russound products. Joe Lautner, VP of sales, says it isn’t phased by the acquisition. “With our sister company ELAN, we look forward to maintaining our relationship with Russound and continuing to work with them as appropriate.”
Colorado vNet Back in Action
 | Russound to Acquire Colorado vNet Terms of transaction are undisclosed. Colorado vNet brand name will remain intact. 3 Reasons Russound’s Colorado vNet Acquisition is Smart Assuming Russound got a good deal on the shuttered manufacturer, access to Colorado vNet's 950 dealers alone makes it a risk worth taking. Schneider/Square D Eyes Colorado vNet Dealers Clipsal lighting control products employ similar wiring topologies as vNet lighting controls. Who Would Buy Colorado vNet? Colorado vNet has closed shop. Would Nortek, Legrand, AMX, Somfy, Schneider be interested? Colorado vNet 'Cautiously Optimistic', Launches 'Bring vNet Back' Campaign Since shutting down, Colorado vNet has received "several commitments to invest" and could have a resolution by the end of the month. Colorado vNet Approaches Shut-Down Provider of lighting controls, audio and video systems and home automation is "in the process of discontinuing operations;" CEO still has hope. Discuss: Colorado vNet Dealer Support | |
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Article Topics
News · Home Automation and Control · Control Systems · Mergers and Acquisitions · Mergers And Acquisitions · Home Automation ·About the Author
Tom LeBlanc, Senior Writer/Technology Editor, CE Pro
Tom has been covering consumer electronics for six years. Before that, he wrote for the sports department of the Boston Herald. Migrating to magazines, he was a staff editor for a golf publication and an outdoor sports publication. Now, as senior writer/technology editor of CE Pro magazine since 2003, he dabbles in all departments and offers expertise in marketing.
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