Snap One officially joins the Resideo family after completing the acquisition of Blockbuster

In April, Resideo agreed to acquire Snap One for $1.4 billion, including about $460 million in debt that the company had anticipated.

ADI and Snap One professional integrators will benefit from significant go-to-market synergies with Snap One’s e-commerce expertise and integrator support platforms, as well as ADI’s 195 warehouse locations and extensive digital capabilities.

SCOTTSDALE, Ariz. and CHARLOTTE, N.C. — Resideo officially completed its acquisition of Snap One today, and both companies will commemorate the event this week in LinkedIn posts on their respective sites.

Resideo agreed to acquire Snap One for $1.4 billion, which includes about $460 million in debt that the company had anticipated at the time of the purchase in April.

This represents a 7.4x multiple for Snap One’s adjusted EBITDA for the 12 months ended December 29, 2023.

Why Resideo acquired Snap One

According to Resideo executives, as a result of the acquisition, Snap One and Resideo’s product families will be integrated into Resideo’s ADI Global Distribution business. This relationship is expected to generate annual synergies of approximately $75 million by 2027.

Asked if a new branding for Snap One is planned following the acquisition, ADI Global Distribution president Rob Aarnes said no decisions have yet been made regarding the integration process.

“Once the transaction closes, Snap One will integrate with ADI and we will begin to evaluate our entire business, including our geographic footprint and storage locations,” Aarnes noted in an exclusive interview with SSI sister publication CE Pro at the time of conclusion of the contract. “Our goal will be to develop and deliver services to our customers.”

“Access to a 100,000+ dealer network (ADI) will accelerate our vision and aspirations for smart living in ways we couldn’t achieve organically,” Snap One CEO John Heyman said in the same interview.

“This is a complementary combination and together we will serve a larger combined market with a more expansive product and service portfolio, enhanced distribution network and scaled geographic footprint.”

Both companies also noted that the acquisition will result in an enhanced value proposition for the integrator, as well as an attractive financial profile that Resideo said will allow the company to “maintain financial flexibility for future strategic initiatives.”

Following the completion of the acquisition, Resideo said it intends to update its 2024 annual guidance to reflect acquisition costs during its second quarter earnings call, which is expected in early August

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