CI Exclusive Q&A: Behind ADI & Snap One’s $1.4B Acquisition

Published: April 19, 2024
Courtesy / ADI

Earlier this week, news broke that Resideo Technologies, Inc. entered a definitive agreement to acquire Snap One Holdings Corp. for $10.75 per share in cash. The transaction is valued at approximately $1.4 billion, inclusive of net debt of around $460 million, according to a statement.

The editors of Commercial Integrator and CE Pro conducted an exclusive Q&A with ADI and Snap One executives to get never-before-heard comments on this monumental acquisition. Here’s what Rob Aarnes, President of ADI and John Heyman, CEO of Snap One had to say about the deal:

Commercial Integrator/CE Pro: How long had Resideo been vetting this transaction? Why did Snap One make the most sense for this deal? Why was now the right time to move forward with this deal?

Rob Aarnes President ADI

Rob Aarnes, President, ADI

Rob Aarnes, President, ADI: A key component of our growth strategy is pursuing acquisitions to expand our reach and accelerate growth. As the demand for connected technology and smart living products for residential and commercial markets continues to grow, we’re confident now is the right time and right next step for our business, customers, suppliers and teams of each company.

Snap One is highly complementary to ADI, and the anticipated combination will help accelerate our overall growth. The addition of Snap One’s network of 20,000 professional integrators, proprietary offerings and omni-channel capabilities to ADI’s extensive footprint of 195 physical locations and expertise will drive value for customers across residential and commercial markets. The combination will also enhance the strategic and operational capabilities of both businesses, creating a significant player across growth categories with an enhanced value proposition to customers.

CI/CE Pro: Will there be a new name for Snap One, something like Snap One, a Resideo Company or otherwise?

Aarnes: At this time, no decisions have been made on the future branding of the organization. We anticipate the transaction closing in the second half of 2024, subject to applicable regulatory approvals. At that time, we will begin an orderly integration process and provide further updates.

CI/CE Pro: The announcement mentioned Snap being integrated into the ADI business — will all the distribution centers now fall under the ADI name and be stocked with product from all of Snap One’s brands? Do you know yet what the executive leadership team will look like merging personnel from Snap with Resideo?

Aarnes: 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. Our focus will be on growth and delivering for our customers. With increased product breadth, local availability and broad expertise across security, AV and smart technology distribution, we believe we will deliver even greater value to customers.

It is too soon to comment on what the executive leadership structure will be following the close; however, we have been impressed with the Snap One team and see them integrating into a variety of levels and roles within the combined business.

CI/CE Pro: Why was now the right time for Snap One to do a deal like this?

John Heyman, CEO, Snap One

John Heyman, CEO, Snap One

John Heyman, CEO, Snap One: Snap One has been on an incredible journey. Since our founding, we’ve helped lead the evolution of our industry from hardware to software, to smart products and solutions; and today reach more than one million homes. Now we’re at a dynamic inflection point, and need to focus on meeting the continued increase in end-consumer demand that we expect to see over the next decade. Becoming part of ADI is the right next step to keep up our momentum and enable our valued customer partners to deliver amazing experiences to end-customers on a larger scale.

CI/CE Pro: What was it about Resideo & ADI that made this the right fit?  

Heyman: We know ADI well – and they know us. They appreciate our product portfolio and team, admire our collaborative and entrepreneurial culture, and value the dedicated service we provide to our customer partners. Access to their 100,000+ dealer network will accelerate our vision and aspirations for smart living in a way we could not do organically. 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.

CI/CE Pro: Will all the partner stores be rebranded with the ADI name, or will they be a separate entity? 

Aarnes: It is too early to speculate on storefront branding at this time. We will share more details as they become available following the transaction closing.

CI/CE Pro: Do you anticipate crossover technologies to impact product development between the brands? 

Aarnes: We plan to continue to invest in core product and service offerings, with enhanced resources for innovation and R&D pipeline. Additionally, as a combined team we expect the product and service teams will find new outlets for innovation, fueling growth and increased integrator and end customer satisfaction.

CI/CE Pro: Will ADI customers now have access to all of Snap’s portfolio through ADI distribution centers; will Snap dealers have access to Resideo products? 

Aarnes: One of the benefits of this combination is the expanded access of Snap/ADI products across the collective network. Details around assortment and offerings have yet to be determined. With that said, ADI and Snap One are dedicated to upholding the quality of the authorized dealer networks.

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