Resideo (NYSE:REZI) has officially completed its acquisition of Snap One, with both companies commemorating the milestones in LinkedIn posts on their respective pages this week.
Announced back in April of 2024, Resideo had originally agreed to acquire Snap One for a grand total of $1.4 billion, inclusive of the approximately $460 million worth of debt the company had forecasted at the time of purchase.
This represents a 7.4x multiple on Snap One’s Adjusted EBITDA for the 12 months ended December 29, 2023
With the acquisition seeing Snap One and its family of products integrated into Resideo’s ADI Global Distribution business, the union is expected to result in annual synergies of roughly $75 million by 2027, according to Resideo executives.
“Upon the transaction close, Snap One will integrate into ADI and we will begin to assess all our operations including our geographic footprint and stocking locations,” noted ADI President Rob Aarnes in an exclusive interview with CE Pro. “Our focus will be on growth and delivering for our customers.”
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“Access to [ADI’s] 100,000+ dealer network will accelerate our vision and aspirations for smart living in a way we could not do organically,” stated Snap One CEO John Heyman in the same interview.
“This is a complementary combination, and together we will serve a larger combined market with a more expansive portfolio of products and services, enhanced distribution network, and scaled geographic footprint.”
When asked whether a new set of branding is planned for Snap One following its acquisition, Aarnes stated no decisions have been made yet as to the integration process.
Both companies also noted that the acquisition will result in an enhanced integrator value proposition, as well as an attractive financial profile that, according to Resideo, will allow the company to “preserve financial flexibility for future strategic initiatives.”
With the acquisition concluded, Resideo said that it intends to update its 2024 annual guidance to reflect the cost of the acquisition during its second quarter earnings call, which is due in early August.
Resideo’s stock price was down .05% at the time of the announcement, trading at $19.50 per share.
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