Strategy in TECH...
Resideo Technologies, Inc. (NYSE: REZI) reported its financial performance in the fourth quarter and full year of Fiscal 2024, the period that ended on December 31, 2024. The company showed good growth, much of which was thanks to its June 2024 acquisition of Snap One, which contributed $553 million to its net revenues.
However, that revenue win was not pain free…
Last week, Resideo Technologies, Inc. (NYSE: REZI), the new owner of Snap One, announced its financial results for the second quarter of Fiscal 2024. This is the first earnings report that follows the closing on its acquisition of Snap One, the largely residential AV integration business, and therefore the first earnings in which Snap One’s business contributed to the results. Even with Snap One included in its numbers, the surprise was that the company reported a 1% revenue decline…and a 40% drop in Net Income.
I’d call that an inauspicious start for this new partnership.
This morning we learned that Snap One Holdings, Corp. (Nasdaq: SNPO) has been acquired by large security provider Resideo Technologies, Inc. (NYSE: REZI) and private equity company Clayton, Dubilier & Rice (CD&R) in a $1.4 billion deal. If you aren’t familiar with the Resideo name, you may know them by ADI, their distribution wing.
The deal is expected to close in the second half of 2024.
