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Tuesday, May 28, 2024

Charlotte’s Snap One being sold for $1.4 billion

An Arizona company has agreed to acquire Charlotte’s Snap One for $1.4 billion to increase its security products business.

Resideo Technologies says it will pay $10.75 a share for Snap One, which is 32% higher than Snap One’s closing price on Friday of $8.13 a share.

Snap One’s shares are trading at $10.61, up $2.47, or 30.3%, in Monday afternoon trading. Resideo’s shares fell 81 cents, or 3.8%, to $20.27 in Monday afternoon trading.

Resideo said it will combine Snap One into its security products distribution. Snap One’s has complementary products in the smart living market and innovative Control4 technology platforms.

“This is the right next step to capture new opportunities to bring our solutions to market,” said Snap One CEO John Heyman in a statement. “The future of smart living is here. Demand for connected technology products continues to grow, and Resideo is the right owner to drive our expansion.”

San Francisco-based Hellman & Friedman, a private equity firm, holds 72% of Snap One’s shares. It has agreed to the deal, as have the board of directors for both companies. The purchase price includes the assumption of $460 million in debt.

Resideo said that the transaction will be accretive to its earnings. It said it would fund the transaction with debt, cash and and a $500 million perpetual convertible preferred equity investment from Clayton, Dubilier & Rice, another private equity firm.

The deal is expected to close in the second half of the year.

FPR Partners, a San Francisco-based hedge fund, owns 9.85% of Snap One stock. Another San Francisco firm, Indaba Capital Partners, owns 4%.

The company was formerly known as Crackle Intermediate and changed its name to Snap One Holdings in March 2021. It went public in July 2021 at $18 a share. The company was founded in 2005.

Chris Roush
Chris Roush
Chris Roush is executive editor of Business North Carolina. He can be reached at croush@businessnc.com.

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