Strategy in TECH...
SnapAV announced this afternoon that they have acquired Custom Plus Distributing, a regional distributor that started in the Pacific Northwest and expanded into California. This is the fourth acquisition by the company who seeks to grow their physical distribution footprint to better serve their customers in local markets.
Credit rating agency Moody’s Investors Service has downgraded the credit rating of Wirepath LLC (corporate name of SnapAV) from B2 to B3 in the wake of their announced acquisition of Control4. The primary reason for the downgrade is due to the fact that SnapAV will be forced to increase their debt by an additional $390 million to a new high of $683 million in order to close on this acquisition.
Showing they can effortlessly walk and chew gum at the same time, SnapAV announced today the have reached a distribution agreement with Klipsch – an action they are taking while still in the middle of the process to buy Control4. As SnapAV has taken aggressive actions to grow their distribution infrastructure, they have been seeking these types of partnerships with brands to help better leverage their investment. This new agreement with Klipsch helps drive that goal.
The world exploded this morning with the news that SnapAV and Control4 are merging their operations in a transaction that no one saw coming. Although publicized as a merger, actually SnapAV is acquiring Control4, agreeing to pay $23.91/share in a deal that is worth a total of about $680 million.
CES 2019 is over the hump, closing tomorrow. But the top tech stories are pretty big and pretty clearly defined – and will be quite exciting, when they appear…someday. The top tech stories include – LG’s rollable, bendable OLED displays, Artificial Intelligence (AI), 5G – the next generation wireless tech, 8K TVs, autonomous vehicles – both car and motorcycle, and Apple & Siri strike back.
SnapAV, a leading provider of custom integration brands and products, announced today that it has acquired Volutone, a respected California-based distributor with seven locations throughout California and Nevada. The move expands SnapAV’s local touch points in a key market, a strategy that first emerged with their earlier acquisition of another large regional distributor in March of this year, Chicago’s Allnet Distributing.
As we reported last week, the world learned that the private equity group that owns AVAD has made another deal, acquiring Houston, TX-based WAVE Electronics, another major custom integration distribution company. After an initial ripple of excitement over the deal, most of us went back to our daily lives – looking at this deal as nothing more than just another private equity acquisition. But there may be more here than meets the eye…
Kingswood Capital Management, LLC, a private equity company that describes itself as “an operationally-focused lower-middle market” PE company – and the current owner of AVAD – announced today that it has purchased Houston, TX-based custom integration distributor WAVE Electronics, Inc. and plans to merge it with AVAD to create one total entity. Their announcement says that with this move they “will create the single largest value-added distributor of high-end audio, video, security, and home automation solutions in the consumer electronics industry.”
Many thought they already were the largest distributor.
Vanco has always seemed to be that reliable supplier in the background providing a steady stream of solutions like cables, connectors, and other accessories – not particularly glitzy or exciting, but steady and there. Well all that is about to change I learned when I spoke with Mark Corbin, Vanco’s recently appointed President at CEDIA Expo18 earlier this month. The company has begun a big initiative to become a major player in a category near and dear to my heart…audio.
Savant Systems LLC, one of the leading control and home automation brands in custom integration, has made two significant announcements recently, both sent within just a matter of three weeks between them. First was the announcement of new software tools: Savant Central Management, a new cloud-based management software, and Studio, an iPad-based field configuration tool. This announcement was followed with a second one – Savant is partnering with AVAD, a national custom integration-focused distributor with 20 locations across the U.S.
