Home Technology Company SnapAV to Merge With Control4
SnapAV will acquire Control4 in an all-cash transaction for $23.91 per share in cash, representing an aggregate value of approximately $680 million.
SnapAV, a leading manufacturer and primary source of A/V, surveillance, networking and remote management products for integrators, and Control4 Corp. (NASDAQ: CTRL), a leading global provider of smart home solutions, today announced that they have entered into a definitive merger agreement whereby SnapAV will acquire Control4 in an all-cash transaction for $23.91 per share in cash, representing an aggregate value of approximately $680 million.
This highly complementary combination will leverage the increased resources of the two companies to provide integrators with a true one -stop shop, offering a complete product portfolio of custom smart-home, control and automation solutions, according to the joint announcement from the Charlotte, N.C., and Salt Lake City-based companies.
With leading technology solutions, a broad geographic footprint and exceptional service organizations, the combined company is poised to provide integrators with better opportunities to serve customers in the connected home and business markets.
Deal Fulfills SnapAV’s Goal to Deliver Leading Home Automation
The companies’ combined impact on the CEDIA channel has continued to reach new heights in recent years.
Besides continuing to roll out its own diversified portfolio of products, SnapAV has been stockpiling distribution companies lately with the recent acquisitions of Allnet, Volutone and, nearly two months ago, MRI.
Meanwhile, Control4 is pushing the home automation boundaries by making forward-thinking hires like former Amazon Alexa guru Charlie Kindel.
Both brands, which have been familiar to the custom electronic market since making big splashes in the mid-2000s, perennially receive huge support from the industry when it comes to SSI sister publication CE Pro‘s Quest for Quality Awards (Control4 won 10 awards this year alone) and CE Pro 100 Brand Analysis.
“We have pursued the mission of making our integrators’ lives easier since SnapAV was founded,” says John Heyman, chief executive officer of SnapAV, in the announcement. “Dealers will be able to buy leading solutions, access the best service technicians in the industry and experience simpler installation through purchasing, support and seamless product integration.
“Over the past several years, we have accomplished a number of goals we felt were critical to the success of integrators and the continued growth of SnapAV — including offering local delivery and pick-up through the acquisition of distribution sites around the country and expanding the suite of products available to support integrators.
“Merging with Control4 and its outstanding team will help us execute on our third critical goal: delivering the industry’s leading automation platform that integrates with the numerous technologies and products required to create customized smart home experiences homeowners desire.”
From the announcement:
Control4’s Board of Directors has unanimously approved and recommended that stockholders vote in favor of the transaction. Under the terms of the Agreement, SnapAV will acquire all the outstanding common stock of Control4 for $23.91 per share in cash. The purchase price represents a premium of approximately 40% over Control4’s closing price on May 8, 2019, the last trading day prior to execution of the Agreement, and a premium of approximately 38% over Control4’s 30-trading day weighted average share price ended on May 8, 2019. Private equity investment firm Hellman & Friedman—SnapAV’s majority shareholder since 2017—will invest additional equity as part of the transaction and be the majority shareholder of the combined company.
1,200+ Combined Employees; CEO Heyman to Lead
By merging, SnapAV and Control4 will combine the talent of their collective 1,200+ employees, market-leading solutions, exceptional interoperability and channel platform, dealer-first programs, global distribution and financial resources to deliver value in ways no one else can — enabling integrators to serve their customers better and grow their businesses.
“We believe today’s announced transaction delivers compelling and immediate value to Control4 shareholders in the form of a significant share price premium, and we are excited to have the opportunity to join with the SnapAV team,” says Martin Plaehn, chairman and chief executive officer of Control4.
“Together with SnapAV, we will be able to invest even more in innovation, bring together and build upon the very best of our combined capabilities, and do so with improved reliability, responsiveness, security, and privacy for consumers. Today’s announcement will enable us to better serve the expanding smart home market, making the lives of integrators easier and their businesses more effective and efficient.”
The combined company will be led by Heyman and an executive team made up of leaders from both SnapAV and Control4. Plaehn will join the Board of Directors of the combined company, helping to ensure a smooth integration of the businesses.
Together the combined company will bring a deep understanding of the industry and an unmatched passion for providing best-in-class solutions and service with one objective: create better experiences for consumers and the integrators who serve them.
Product integration, remote management, expert service technicians, product simplification, training and timely logistical capabilities will ensure every install is easier, more reliable and delivers fantastic experiences to consumers where they live and work.
“The combination of Control4 and SnapAV is transformative for the smart home industry,” says Erik Ragatz, Partner at Hellman & Friedman and chairman of the Board of Directors of SnapAV.
“The increased resources of the combined company will enable it to invest more to drive innovation and deliver best-in-class features, functionality and products. This combination will also allow us to support integrators more effectively than ever before in pursuit of our joint goal of bringing the promise of the connected home to life.”
The transaction, which is expected to be completed in the second half of 2019, is subject to the satisfaction of customary closing conditions, including regulatory approvals and approval by Control4 shareholders.
Simpson Thacher & Bartlett is representing SnapAV as legal advisor on the transaction, while Raymond James & Associates and Goodwin Procter are serving as respective financial and legal advisors to Control4.
Stay tuned for further coverage…
This article first appeared on SSI sister publication CE Pro.
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