Resideo Technologies recently announced an agreement to acquire Snap One for $1.4 billion, including debt. This acquisition will bring two industry leaders in the smart-home sector together, with Snap One shares seeing a rise 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. The merger is expected to strengthen Resideo’s position in security, audio visual 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 on the news of the deal.
Resideo CEO Jay Geldmacher expressed excitement about the acquisition and sees it as a positive step in the company’s transformation through portfolio optimization, operational improvements and cost-saving initiatives. Geldmacher has been with Resideo since May 2020 overseeing various acquisitions and divestitures during his tenure at the company’s helm.
Prior to this acquisition announcement, Resideo completed its acquisition of home safety products company First Alert from Newell Brands for $593 million in cash in April 2022. The company’s product lineup includes items such as thermostats, security cameras and water leak detection devices
