WHAT IS NEXT? THIS IS HUGGGGGE.
Two of the biggest players in the custom integration and home automation space announced an agreement to merge. SnapAV, a leading manufacturer of A/V, surveillance, networking, and remote management products for integrators, and Control4, one of the leading home automation platforms, will combine their operations to create one of the strongest forces in the integration community.
In a statement, the two entities called the merger a combination of two “highly complementary” companies that will be able to leverage their increased resources to provide a “true one-stop shop” for integrators. The combined Control4-SnapAV brand will have a complete portfolio of smart home, control, and automation solutions that’s going to be tough to rival.
The way it’s spelled out, SnapAV will acquire Control4 in an all-cash transaction valued at around $680 million. Control4’s board of directors has already unanimously approved the deal and recommended that stockholders vote in favor of the transaction. The purchase price, according to the statement, represents a premium of around 40 percent over Control4’s closing price on May 8, 2019, the last trading day prior to this announcement. Private equity investment firm Hellman & Friedman, SnapAV’s majority shareholder since 2017, will invest additional equity as part of the transaction and become the majority shareholder of the combined company.
“We have pursued the mission of making our integrators’ lives easier since SnapAV was founded,” John Heyman, chief executive officer of SnapAV, said in the statement. “Dealers will be able to buy leading solutions, access the best service technicians in the industry and experience simpler installation through purchasing, support and seamless product integration. … In sum, the two companies will be better together, with better service, better solutions and better opportunities for integrators and employees.”
The new combined company will be made up of some 1,200 employees that will be led by Heyman and an executive team made up of leaders from both SnapAV and Control4. Control4 CEO Martin Pleahn will join the Board of Directors of the combined company.
“We believe today’s announced transaction delivers compelling and immediate value to Control4 shareholders in the form of a significant share price premium, and we are excited to have the opportunity to join with the SnapAV team,” Plaehn said in the statement. “Together with SnapAV, we will be able to invest even more in innovation, bring together and build upon the very best of our combined capabilities, and do so with improved reliability, responsiveness, security, and privacy for consumers. Today’s announcement will enable us to better serve the expanding smart home market, making the lives of integrators easier and their businesses more effective and efficient.”
The transaction is expected to be completed during the second half of this year.
Credit: Dealerscope - By Rob Stott