Resideo ADI Acquires Snap One (AV) - Two Mega But Struggling Companies Combine
ADI and Snap One (formerly AV) are two of the biggest security / "smart living" distributors but have faced significant challenges.
Now, in a major move, ADI's parent company, Resideo is acquiring Snap One and combining them together.
In this report, we examine:
- The company's stock price trends
- The company's revenue and profit trends
- The investor call remarks from Resideo executives
- What Resideo plans to do with the combined companies
- How ADI and Snap One may help each other
- How ADI and Snap One could change how it works with or competes with its vendor partners.
For background, see 2021: Snap One / AV IPO Filing Examined, Resideo and ADI Q1 2023 Financials Results Analyzed, and ADI Financial Problems And The Case For Breaking Up Resideo Analyzed. Plus, for AV / security trends, see NSCA Profile: CEO Speaks On How A/V And Security Are Converging.
Executive *******
**** ********* **** ********* ***********, **** limited ** ** ******* ****** *** falling ***** ****** ***** **** **** public.
**** *** **** * ****** ***** or ** ***** ** *********** ** experiment **** * *********** **** ****** minimally ****** *********** ***** *** *********** give **** *** **** ** ** to ******.
***** *******'* ********** **** ******* ********** cost-cutting ********, ** ** ***** **** them **** ***'* ******** **** ********* and **** ***'* *** *************, **** the ********* ** *****-******* ** **** as **** ** ********** **** ********* convergence ******* */* *** ******** (******* *******: *** ****** ** *** A/V *** ******** *** **********).
Stock ***** ********
**** *******'* ***** ****** **** ******** significantly ***** ***** ****** ** *** last * ** * *****, ****** Snap ***'* *** **** *****.
**** *** ** **** **** **% since ***** ******, **** * ****** capitalization ** ~$*** ******* (****** **** deal)
******* ** **** ~**% ***** ***** public, **** * ****** ************** ** ~$3 *******:
30%+ *******
******* ** ****** * **%+ ******* ($10.75) **** *** ******** **** *** closing ***** ** $*.**, ******** *********** ****:
***** ******* ********* ** ** * $1.4 ******* **** **** ** ******* it ******** "********** *** **** ** Snap *** ** *** ******* ** approximately $*** *******."
*** ****** ************** ** **** *** is ******* ~$*** ******* ** **** deal.
Snap *** ******* ****
**** *** **** ***** *****, **** One's ******* *** **** ****, **** operating ****** ***** ** ***, ******** ***'* **** **-*:
PE **** *&* *** / **** *******
** **** ******* & ********, *** was *** *********** *********** ** **** One,******** ** ** ****, ** *** *******.
**** *** ********* *** **** * great **** *** *&*, ** **** held **** *** ****** ***** *****, with *** *******'* ***** **** ************* since ** **** ****** ** ****. How ****** ******* ** *&*'* *********** price ** **** ** ****, *** assuming ** *** ** *** $*** to $*** ******* *****, **** ***** be ** *** ** ******* **%, far ***** ******* **% *** *** *** *&*.
New ** **** **
*******, * ********* ** **** ** investing ** ******* ** **** ** this ****, ******&******** ** $*** ******* ** **** this **** *********:
ADI ******* ******* ****
**** **** ***, ***'* ******* *** roughly **** **** **** *** **** few ***** ***********'* ** **** ******** ****:
** ~$*.* ******* ****** ******* *** ADI, *** ** ***** ***** *** the ************ ******** ******, **** ********** avenues *** ****** *** **** *** direct ****-*****, ***** / *******.
Complementary **********
******* **********, **** ** *** ********'* call ***** *** ********'* ****, *** *** *** **** *** are *************, **** ***'* ********* ********* being ********** *********** ***** **** ***'* are ********* "***** ******" / *********** ones:
Proprietary ******** *******
***** *** *** ********* ********* *** its *** *********** / ***** ***** products, *** ***** ******** ************** **** 3rd ***** ********. *******, */**** ** Snap ***'* ***** *** ***********.
*** ********* ******* **** ** ** see *** **** ******* ***'* ********* of *** *** ******* ********, **** as * *** ** *** *** Snap *** ******* ********.
** ******* ** * ****** ***** here, ** ***** ****** *** ** continue ** ****** ******* **** ********** and ********* **** *** *** ***** suppliers.
Selling **** ******** ** *** ********
******* ********* **** ** *** / will **** **** *** ******** ** ADI ********, ** *** ******* **** the **** ***** *****:
***** **** ******* ** ********, *** has *** **** **** **** ***, which ***** **** ****** ****'* *****.
Cost ********* / *****
***** ******* ********* ********* ******* ******, it *** *** **** ******** ***** how ** ***** ******* ** ******* costs, **** $** ******* ******** **** the **** ***** *****.
**** $** ******* ** * ***** but ******** ******** ** **** ***'* current ******* $* ******* ****** ********.
**** ****** ************* ** ****** *** it *** *** ******* **** ********* specifically ***** ** **** ****. *** reasonable ******, ** *******, ** ** consolidate **** ******** **** **** *** and **** *** **** ** *** same ******.
**** *******, **** ********** *** ********* achievable ** ******** **** ******** ***** since **** *** **** ** ****** be ******** ****** ** ******** ** itself.
*******
** ******* ** *** ******* / ADI ******** ****, *** *********, ** gives **** * *** ***** ** tell ** *********, ** ******* ** just ******** *****, ** *** *** an *********** ** ******* / ********** one ** *** ******* *********** / home ******** *********.
*** ********* **** ** *** ** whether *** *** ** ****** ******* Snap *** **** **** *** *** itself ***** ***** ******. ** **** cannot, ** **** **** *** ** ever ******, ****** ************. *******, ** they ***, *** *** **** *** energy *** ****** **** *** **** few *****.
** *** ******* ***** ****** ********* you *** **** *** *** **** than ***, * ****** ** ***** ADI *** **** **** *******?
**’* **** * *** ***** ***** CD&R ********* **** **** ********* ******* only ** ** ****** ** *****. A ******** ***/**** **** ** * formidable ********** *** *******/*****. **** ** interesting ** *** **** **** ***.
**** *********** ** **** **** * weeks *** **&* ********* ********* ** buy ********. *** **** ******** ****** with *******?!
**’* **** * *** ***** ***** CD&R ********* **** **** ********* ******* only ** ** ****** ** *****
**** ******. * ****** ***** ****. 4 ***** ***, ** ******* **** here:***** **** *******
*******'* ***** ******* ****** ** ******* yesterday ***** *** **** *** ********* but **** **** **** *** ** overall **** ~*% *****:
**** ******** ********'* ********* ********* **** modestly ******** ***** *** ****.
*** ******** **** *** ********'* ****:
** *** ******* ** ********** ********* revenue ** ******** **** **** ***'* offering ** ***:
*** ********* ******* *********** **** *** part *** ****** ** *** ******** that **'** **** ***** **** ***** a ******** **** ** ***** *** structurally ****** ******
******* ***** ** **** **** *** party **** *** ******* ***** ** Resideo:
****** ** *******, **'* ***** ****** to *** ** ** ***********. *** I ***** **** ***** **** ******* does *****, *****'* *** ******** **** have *** **** ***** *******, *** they'd ** ******** **** *** ******* offerings **** ****.
**** *** *********** *** ***** ******* opportunities ******* *** *** **** *** integrators:
*** ** *** ****** **** **'** observed ** *** *** *** *********** and **** **** *** *** ** top ***** *********** *** ****** **** of ********* ** ********, *** ****'** being ******* **** *****'* ******** ** a *** **** ** ***** *****, this *********** *** **** **, ** leverage **** *** *** ******* ** us, *** ****, *******, *** *** benefit ** *** ***********.
**** ** **** **** *** ******** to *** ***********:
** **** *** ******* ** ****, especially ***** *********** ******* **** **** more *********, ******** *** **** *********, more *********** ** *** *** ****, as **** ** ************* ************.
******** ***** **** ******* ******* ******** but *** *** ****** ***** **** 3:
************ ** *** **** *** ******** branch ******* ** **** ** *** distribution *******, ***** ***** ** ****** will **** * ****** *** **** time.
********** ********** *** * *&* **** ADI *** **** *** *** **** few *** *******:** *********: *&* **** *** ***** on **** *** *********** - ********** Integrator
**** *** *** **** ********* ***** Snap ***'* ******** *** ********** **** but *** ******* ***** **** *****, e.g."
** ** *** **** ** ******* on **** *** ********* ********** ********* will ** ********* *** *****; *******, we **** **** ********* **** *** Snap *** **** *** *** **** integrating **** * ******* ** ****** and ***** ****** *** ******** ********.
** ** *** ***** ** ********* on ********** ******** ** **** ****. We **** ***** **** ******* ** they ****** ********* ********* *** *********** closing.
*** ***** **** *** ******* *** that ******** ***** ** **********:
*** *** **** *** *** ********* to ******* ******** ****** **** ********, ensuring **** **** *** ******* *********** by ********** ******** ****.
*** *** *** **** *** ******, especially ***** ****** *********** ** ********** Custom ************