ADI On Snap One Acquistion Integration
While ADI has had challenges in its security and surveillance business, it is optimistic about the deal its parent Resideo announced in April 2024 to acquire Snap One at a ~$1.4 billion valuation.
Now, the company spoke with investors about its progress in integrating Snap One into ADI.
For background, see: Resideo ADI Acquires Snap One (AV) - Two Mega But Struggling Companies Combine.
******** *********** ** **** ***, *** *** **** ******* *** synergies **** *** **** *** *** there **** **** *****-******* ******* ******* the ***:
* ***** ********* *** **** ***** creation **** ** *** ***** *** intermediate ****, ***** ** ****** *** execution, ***** **********,cross-selling, *** ********* ** *** ********* ****** that ADI brings into the Snap organization, and really driving those exclusive ****** through ADI. It’s going to take a little while to get there on those, but those are the areas that we are focused on, and those are where we see the real value levers. [Emphasis added]
Promoting *******
** ** *******, *** ** ******* heavily ************* ***'* *******:
******, *******/*** ********** **** ****** *** investor's ****:
*******, **** ***’* ********** ***** ********** solution ******** **** *** *** ******** in ***** ******* ** **** ** on *** *** ***** ******* *-******** site ****** **** * **** ** close
Synergies / **** *******
***'* ******, *******, ******* ********** *** integrating *** *** ********** ** ***** to ** * "*** ********" *** the **** ** *** ****** **** of ****, ***** ******* * $** million ****** *** **** ********* ** 2024:
*** *********** ** ***** *** ********** is * *** ******** *** ** in *** ****** **** ** ****. We ******** ** ****** $** ******* of ****** *** **** ********* ******* 2026, ** ***** ** ****** ** achieve $** ******* ** **** ** 2024.
******* **** ********* **** ********* ********** with *** ********* ******* *** *** Snap ***:
** ****** *** **** *** *********** in ***-****. **** *** **** * weeks **** **** *** ** *** gate ****** **** *********** ****** *****-*******, shared **** *********, **** ********** *** sales **********.
Gross ****** ****** ***** ********* **** ***
******* ******* ** ********* **** *** is *** ******-****** ******* ***, ******* added:
**’** ******* ** **** *** ***** working ******** ** ***** ***** *** our ******** *********. *** ******** ** Snap *** **** ** ***’* ******* breadth ** ********** ****** ********** ******* the *** ** ******-****** *********** ******** and ******** *** ******** *** ******** base.
*******, ***'* ******** ****** ** ** 2024 *** ***** **** ***. *** company ********* **** **** ** *** quarter *** *** **** *** ******** of *** *** **** *** ********, which *********** ** ****** ***** *******:
*** ******** ****** ** $** ******* was **** *% ******** **** ** last **** *** ********* **** $* million ** **** *** ************. ***** gross ****** ** *** ***-*********** *** business ********* ** ********** ****** ************* with ********* ******** ********* ********** **** year-over-year.
New ******* ************ ** ********
** ******** ** ********* ********* *** ADI ***** **** **** ********** ** security, *** ******* ********** ****** *** it ****** ** ******* **** ************ with *** ******* ********:
** *** **** ** ********, **** ties * *** ** *** (*** product ************).
** **** ****** ******** **** **** the ******* ** ******, *** ******** comes **** ** ***** *****, * think ****’* ***** ** ** **** beneficial ** *** *******. *** ***** me **** ***** ***. *** * think ** ********** ** **** ****** in ***** ** ****’* ***** ** in ******** *** ********* ** ***** of *** ********.
* ***** ** ***’* *** * big ****-** **** ******** **** ** that, *** * ***** ** ****** a ******, ****** ******** *** ******** future ******* **** ****.
Snap *** ****** *********
***** ***'* *** ********* ***** (*.*., W-Box,*** ***) ***** (********* **** ***) **** 18% *** ** ** ****, *** company **** **** **** *** ******** of **** *** *** *** "***** exclusive ***** ********* *** *********** *********," it ******* ** "*** ************ ****** this **** ** *** ****** *******."
******* **** ********** ** *** ***** and ******* ********* **** *** ******* to ***:
**** ***, **** ***’* ********** ***** management ******** ******** **** *** *** branches ** ***** ******* ** **** as ** *** *** ***** ******* e-commerce **** ****** **** * **** of *****. ** *** ***** *** fourth ********, ** **** ****** ******** of ********** **** *** *********** ******** into *** ** **** ** ******* ADI ********* ***** ******** **** **** One’s ******** *** *-******** ********.
***'* *** ******* ****** ******** *********** and ***** ********-******* ********:
*’* ********* ******* ***** *** ****-**** new ******* ******** ****** ******** *** Solutions. *** ******* ******** ** **** ourthermostat *** ******** ******* categories have the potential to be the most impactful since I joined Resideo in early 2020. Just as exciting is the opportunity we see for creating value in bringing the Snap One organization together with Resideo. [Emphasis added]
******* **** ******* ********** ** *** security-related ******** *** *** ******** ***** for ******* *****:
** ***** **security ********, **’* ******* ** **** ** *** ******** ** *** ******* *************, and we will have something later this year as our first offering in that. And we are going to continue to invest in that because our position and our right to win in that market, we believe, is quite high, and we like what we have got in the pipeline to develop to create value for our customers. [Emphasis added]
Adding **** *** ********** ** ******* / ***
***'* ********* *** ****** **** ** "added ***** ******* ** *** **** leadership **** *** ** ** ********** team," **** **** ***'* ***,******* ******, ** *** *******'* ***.
Going *******
***, ***, **** **** ***, ** closing ** ** ***** * $* billion ******** **** **** ****** ********** of *********** ****** **** *** ***** products, **********:
*** ***** ***** *** *** ***** we *** *** ****, ******* $*.* billion, $*.* ******* ************, ***** **% of **** ** *** *********** ********, right. ****’* – ** *** **** at **** **** **********, ***** ***-****** of ***** ******** *** *********** ******** and ***** *% ** *** ******** was **** ** **** *** ********* brands. ** *****, ********, *** ** are ******** ** **** ** ******** on *** **** ***** **%. **, a *********** ********* *** ** ** an ************ *** *** **** ****.
****, ** ****, **** **** ** leverage ****'* ********** ** ******* ******** offerings ****** ***:
*** **** ** *** **** ** a **** *******, *** ***** *****, alright, ***** *** ***** ******** **********. The ******** ** *** **** ******** is ** ****** **** *** ****, right, *********** **. ***, ** **** an *********** **, ** ** **** forward, ******* ***** *********** ********* ** actually ****** **** **** ***** ********** that *** ***** ** *** ****** start ******** * ****** **** *** sales **** ** ***** ************* *** to **** *** **** ******** ********, but ***** ******** ******** **** ****** software ********* *** ********** **** ******** and ********. *** ****’* ***** ** will ***** *** ******** ** *** time ******* *** *** *** *** of *** ****, ******** ***** ************ to **** ****** ******** ** *** ‘25 *** ******