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Resideo Technologies Inc. has announced its plans to acquire Snap One Holdings Corp., a leading provider of smart-living products and software, in a $1.4 billion transaction. The deal, advised by Willkie Farr & Gallagher LLP, is set to receive a $500 million equity injection from Clayton Dubilier & Rice LLC.

Resideo Technologies to Acquire Snap One: Deal Structure and Financing

Under the agreement, Resideo will pay $10.75 per share in cash for Snap One, totaling a valuation of $1.4 billion inclusive of Snap One's estimated net debt of $460 million at the deal's closing. The purchase will be funded by committed debt financing, existing cash reserves, and the $500 million preferred equity investment from CD&R.

Upon completion of the acquisition, CD&R will have the right to appoint board members to Resideo's leadership team.

Strategic Synergy

Snap One's operations will merge into Resideo's ADI Global Distribution Business after the transaction concludes. The merger is poised to enhance Resideo's strategic and operational capabilities, reinforcing its position in high-growth markets such as smart living and home security.

Resideo CEO Jay Geldmacher emphasized the significance of the acquisition: "This move propels Resideo's journey of transformation through portfolio diversification and operational improvements. The synergy between ADI and Snap One creates a robust strategic outlook for the future."

 Smart Living Revolution

The merger promises to deepen relationships with integrators and clients, offering a broader selection of third-party and proprietary products through an extensive branch network. Snap One CEO John Heyman expressed confidence in the venture, noting the immense potential to bring their smart living solutions to market.

"We believe this transaction will drive growth and provide immense value to our stakeholders, partners, and employees," said Heyman. "Together, we can navigate the expanding landscape of smart technology."

Resideo Technologies to Acquire Snap One: Legal Counsel and Closing

Private investment funds managed by Hellman & Friedman LLC, which own approximately 72% of Snap One's shares, have signed written consent to approve the deal, clearing the path for its completion.

The deal, expected to close in the second half of 2024, remains subject to standard closing conditions.

Resideo was advised by a team led by partners Russell Leaf, Jared Fertman, Tej Prakash, and Sean Ewen of Willkie Farr & Gallagher LLP. Simpson Thacher & Bartlett LLP's Eric Swedenburg, Katherine Krause, and Louis Argentieri represented Snap One. Kirkland & Ellis LLP advised CD&R, with key input from corporate, capital markets, and tax partners.