On Tuesday, ADI Global was officially launched as an independent company listed on the New York Stock Exchange (NYSE) with the symbol ADIG. Up to now, it was part of Resideo Technologies. This splitting of the parties was, of course, widely reported and expected, but has now been completed.
With the launch of ADIG stock on the NYSE, a new dawn emerges for both ADI Global Distribution and Resideo Technologies.
Learn more about the final separation of ADI Global Distribution from Resideo Technologies
It was almost exactly one year ago (July 30, 2025) when Resideo Technologies (NYSE: REZI) announced its intention to split off ADI as an independent public company. For many years, Resideo had two main divisions – Products & Solutions (manufacturing) and ADI (distribution). By splitting off ADI, Products & Solutions would continue on as Resideo Technologies, while ADI would be a separate, independent distribution company known as ADI Global.
The Next, Most Natural Step
The reason given for the separation was loosely described by Resideo as follows: “We believe a separation is the next, most natural step, allowing ADI and P&S the opportunity to unlock their full potential and better serve all our stakeholders.”
Retiring CEO Jay Geldmacher further suggested that a separation would provide an opportunity for each company to more completely focus on its specific segment served. Not much more detail than that was provided.
Resideo Shareholders Received 1 ADI Share for Every 2 REZI Shares Held
The separation was completed via the distribution of shares of ADI Global stock (NYSE: ADIG) to Resideo shareholders of record at the rate of one share of ADIG for every two shares of REZI held as of a record date of July 20, 2026. Resideo shareholders will also receive cash for any fractional shares to which they are entitled.
Resideo noted that as part of this transaction, it was able to pay $900 million of outstanding principal under its Term Loan B credit facility. Plus, the company says it plans to pay another $200 million toward Term Loan B after “post-closing cash adjustment under the separation agreement with ADI.”
Resideo Becomes a ‘Pure-Play Building Technologies Company’
With trusted and iconic brands, deep relationships with pros and a 140-year heritage of innovation, Resideo is poised to start this next chapter as a pure-play building technologies company. With dedicated strategic, operational and financial focus, we are ready to capture the profitable growth opportunities ahead and drive above market growth and sustained margin expansion.
Tom Surran, Resideo Technologies President and Chief Executive Officer
Again, we don’t have much in the way of details on their plans, but even though they have been separated, I would guess that part of the separation agreement includes an ongoing relationship. Products & Solutions (Resideo) is still going to need a distributor to sell their products…and ADI Global will likely want to continue with them as a valued supplier.
Both Still in the Same Business, Both Still Working Together
In addition to this, they both still service the same market segment – largely the commercial security business. So the symbiosis is still there between these two partners who worked to build this business for the last eight years. So it’s hard to see how the situation is all that much different.
Interestingly, you will hear both Resideo and ADI talk about their residential business. But the information I’ve been able to glean, and the market feedback I’ve received, seems to suggest that residential AV remains a relatively small part of their business…and they a relatively small part of the residential channel.
ADI CEO: ‘Our Primary Product Lines are Commercial’ [Security]
Rob Aarnes appeared on CNBC’s NYSE Live show, and when asked by host Ashley Mastronardi to describe ADI’s business, Aarnes said the following…
Well, our primary product lines are commercial, which involves video surveillance, you see cameras all over this place; fire and life safety systems, which are all kind of all behind the wall; access control points, when you came in this building, you probably had to show a badge [or] swipe a badge; professional AV products, so all the monitors you see here; video digital signage that stays on forever in hotel rooms; and video conferencing equipment. That makes up the majority of our product line.
Rob Aarnes, ADI President and Chief Executive Officer on NYSE Live TV show
Then, almost as an afterthought, Aarnes added, “And to include some residential AV products as well.”
‘A Pivotal Milestone for ADI’
ADI, like Resideo, put out a formal announcement about the launch of the offering of ADIG stock on the New York Stock Exchange.
Today marks a pivotal milestone for ADI as we are officially an independent specialty distribution company. We have a long legacy of industry leadership, built on trusted customer and supplier relationships, a differentiated omnichannel platform and the best talent in the industry. With strong momentum and a clear go-forward strategic path, ADI is poised to generate above market revenue growth and meaningful long-term value for our shareholders.
Rob Aarnes
So How Did the Launch of ADIG Stock Go?
ADI started the day on Tuesday by ringing the opening bell on the NYSE in celebration of its first day of trading as an independent public company. The stock opened at $21.25 and closed at 22.06 for over a 3% gain. That is not bad, but certainly is no barn burner.
One last interesting tidbit from Aarnes’ appearance on the NYSE Live show. Mastronaudi asked him what the next big growth category is for ADI? Without hesitation, he blurted out, “Data centers…data centers and datacom.” He says they started in the category about five or six years ago, and it is a category with “explosive growth.”
Funny…I thought he’d say residential AV.
Learn more about ADI Global Distribution by visiting adiglobal.com.
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