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.
