Resideo sees Snap One acquisition as accretive to FY25 non-GAAP adjusted EPS

Resideo Technologies (REZI) announced that it has completed the acquisition of Snap One (SNPO), a provider of smart-living products, services, and software to professional integrators. “Resideo will integrate Snap One into its ADI Global Distribution segment. Together, ADI and Snap One will provide integrators an increased selection of both third-party products and proprietary offerings through an extensive physical branch footprint augmented by industry leading digital capabilities. As previously communicated, the all-cash transaction was for $10.75 per Snap One common share, or a total transaction value of approximately $1.4 billion, inclusive of Snap One net debt as of the closing,” Resideo stated. Resideo continues to expect annual run-rate business and financial synergies of approximately $75M by 2027. The transaction is expected to be accretive to full year 2025 adjusted EPS resulting from favorable revenue growth and an enhanced margin profile to ADI and the company as a whole. Resideo intends to update its 2024 annual outlook to reflect the acquisition during its second quarter earnings call in early August, the company noted. In connection with the closing of the Snap One transaction, as previously announced, investment funds managed by affiliates of Clayton, Dubilier & Rice LLC completed their $500M convertible preferred stock investment in Resideo. Effective at the closing, Nate Sleeper and John Stroup, partners at CD&R, joined the board of directors of Resideo.