Resideo Technologies (REZI) has announced an agreement to acquire Snap One (SNPO), a fellow smart-home industry player, for $1.4 billion in a deal that includes debt. The acquisition was met with enthusiasm from Snap One investors, causing a surge in their shares, while Resideo stock experienced a decline in value.
Under CEO Jay Geldmacher, who took over in May 2020, Resideo has engaged in a series of acquisitions and divestitures. One of the recent acquisitions was the purchase of First Alert from Newell Brands for $593 million in cash. The company’s product portfolio includes a range of smart home devices such as thermostats, security cameras, smoke alarms, water leak detectors and more.
Geldmacher expressed excitement about the acquisition stating that it marks a significant step in Resideo’s ongoing transformation through strategic portfolio optimization, operational improvements, and structural cost-saving measures. With this merger, both companies are expected to establish a strong presence in security, audio visual and smart living technology distribution for both residential and commercial markets.
Resideo’s stock experienced a breakout in February 2022 after reporting better-than-expected sales and earnings for the fourth quarter. Despite recent market fluctuations, the company continues to establish itself as a key player in the smart home technology sector. Investors can follow Patrick Seitz on Twitter at @IBD_PSeitz for more updates on consumer technology, software and semiconductor stocks or access MarketSurge for comprehensive research charts data coaching all in one place.
