Russound to Acquire Colorado vNet
Terms of transaction are undisclosed. Colorado vNet brand name will remain intact.
Terms of the transaction between the two companies were not disclosed. The LOI states that the deal will be done by October 31, 2009.
The Colorado vNet brand name will remain intact, and the company will continue to operate out of offices in Loveland, Colo. Russound is based in Newmarket, N.H.
Russound CEO Charlie Porritt says the acquisition fits perfectly into the company’s product roadmap of pursuing technologies that ease the transition from analog to IP-based solutions. He called the move into home controls “a natural progression for Russound.”
“One of Russound’s goals has been to offer control solutions for security, lighting and thermostats,” says Porritt. “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 added that Russound has tried to enter the control market in the past through partnerships.
Colorado vNet announced on Sept. 22, 2009 that a would-be investor fell through, forcing the company to close its doors. Just days after the shut-down was announced, Mike Malone, Colorado vNet’s VP of sales, sent an e-mail to dealers that said the company had received “several commitments to invest in the recovery of the business,” and that vNet could have a resolution by the end of September. Speculation then went rampant on who the frontrunner was to acquire Colorado vNet.
3 Reasons Russound’s Colorado vNet Acquisition is Smart
Assuming Russound got a good deal on the acquisition, access to Colorado vNet’s 950 dealers alone makes it a risk worth taking.
The acquisition provides Russound with several key assets from Colorado vNet, including:
Technology: Colorado vNet has 29 different patents granted or applied for, according to Porritt. He says the company will be reviewing individual product SKUs from vNet but initially has no announcements of any discontinued lines.
Personnel: No specific decisions have been made on individual personnel, including Colorado vNet CEO Bill Beierwaltes. Porritt says certain key personnel will be retained.
Dealer Base: Colorado vNet reportedly has 950 direct dealers, of which only about 200 overlap with current Russound dealers.
“Our biggest priority is to take care of the Colorado vNet dealers,” says Porritt. “Colorado vNet will operate independently to preserve its dealer base and will revert to courtesy technical support services for authorized Colorado vNet dealers effective Wednesday October 7th.”
“Of all the companies that expressed interest in acquiring our assets, we believe that Russound makes the most sense for our customers, our employees and our business,” says Beierwaltes. “Russound’s long history of innovation, commitment to customer service and overall leadership role in the multi-room distribution market leaves me confident that Colorado vNet is in good hands.”
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Jason Knott is Chief Content Officer for Emerald Expositions Connected Brands. Jason has covered low-voltage electronics as an editor since 1990, serving as editor and publisher of Security Sales & Integration. He joined CE Pro in 2000 and serves as Editor-in-Chief of that brand. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He has been a member of the CEDIA Business Working Group since 2010. Jason graduated from the University of Southern California. Have a suggestion or a topic you want to read more about? Email Jason at email@example.com
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