Resideo Technologies has announced an agreement to acquire Snap One in a deal worth $1.4 billion, including debt. The acquisition will bring together two industry leaders in the smart-home sector, with Snap One shares rising on the news while Resideo stock fell.
Resideo, based in Scottsdale, Arizona, will purchase Snap One, located in Charlotte, North Carolina for $10.75 per share in cash. This merger is expected to enhance Resideo’s position as a leading provider of security and smart living technology for both residential and commercial markets. Despite the acquisition, Resideo stock dropped by 3.5% to $20.34 while Snap One stock surged by 29.5% to $10.54.
Resideo’s CEO Jay Geldmacher expressed excitement about the acquisition and how it aligns with the company’s transformation strategy through portfolio optimization, operational improvements, and cost-saving initiatives. Geldmacher has been at the helm of Resideo since May 2020 and has overseen various acquisitions and divestitures during that time period.
In April 2022, Resideo completed its 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. Following a strong fourth-quarter performance that exceeded expectations and pushed the stock above $23 on March 21st this year ,Residoo stock broke out of a cup base at a buy point of $19