• Tue. May 21st, 2024

Resideo stock drops after smart-home company acquires Snap One

BySamantha Johnson

Apr 16, 2024
Resideo stock drops after smart-home company acquires Snap One

Resideo Technologies announced an agreement to acquire Snap One in a deal worth $1.4 billion including debt. The acquisition will combine two industry peers in the smart-home sector, with Snap One shares rising on the news, while Resideo stock fell.

Resideo, based in Scottsdale, Arizona, will purchase Snap One, located in Charlotte, North Carolina, for $10.75 per share in cash. The merger is expected to enhance Resideo’s position in security, audio visual, and smart living technology for both residential and commercial markets. Despite the acquisition, Resideo stock dropped by 3.5% to $20.34, while Snap One stock surged by 29.5% to $10.54.

Resideo’s CEO Jay Geldmacher expressed enthusiasm about the acquisition, seeing it as a positive step in the company’s transformation through portfolio optimization, operational improvements, and cost-saving initiatives. Geldmacher has been at the helm of Resideo since May 2020, overseeing various acquisitions and divestitures.

In April 2022, Resideo completed the acquisition of home safety products company First Alert from Newell Brands for $593 million in cash. The company’s product lineup includes items such as thermostats, security cameras, and water leak detection devices. Resideo stock recently broke out of a cup base at a buy point of $19.20 following a strong fourth-quarter performance that exceeded expectations and pushed the stock to $23.21 on March 21.

For more stories on consumer technology, software, and semiconductor stocks, follow Patrick Seitz on social media, or check out IBD MarketSurge for research, charts, data, and coaching all in one place.

By Samantha Johnson

As a content writer at newszkz.com, I delve into the realms of storytelling, blending words to paint vivid narratives that captivate and inform our readers. With a keen eye for detail and a passion for research, I craft compelling articles that resonate with our audience. My love for words drives me to explore diverse topics, ensuring that each piece I create not only educates but also entertains. Join me on this journey as we navigate the ever-evolving landscapes of news and knowledge together.

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