Electronics manufacturer SnapAV and home automation and smart home company Control4 are entering a definitive merger agreement where SnapAV is going to acquire Control4 in an all-cash transaction for $23.91 per share in cash — which represents a total value of about $680 million. Control4’s Board of Directors unanimously approved and recommended that stockholders vote in favor of the deal.
This purchase price represents a premium of about 40% over the closing price on May 8, 2019 — which is the last trading day prior to the execution of the agreement and a premium of about 38% over Control4’s 30-trading day weighted average share price ended on May 8, 2019.
And as part of the deal SnapAV’s majority shareholder, the private equity investment firm Hellman & Friedman, is going to invest additional equity as part of the transaction and will become the majority shareholder of the combined companies.
“We have pursued the mission of making our integrators’ lives easier since SnapAV was founded,” said SnapAV CEO John Heyman in a statement. “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 1,200 employees of the combined company will be led by Heyman. And there will be an executive team made up of leaders from SnapAV and Control4 established.
“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,” added Control4 chairman and CEO Martin Plaehn. “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.”
Plaehn is going to join the Board of Directors of the combined company in order to help ensure a smooth integration of the businesses.
“The combination of Control4 and SnapAV is transformative for the smart home industry,” explained Hellman & Friedman partner and chairman of the Board of Directors of SnapAV Erik Ragatz. “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 company will have joint headquarters in Charlotte, NC, and Salt Lake City, UT along with offices and local facilities around the globe. And the deal is expected to close in the second half of 2019 pending customary closing conditions.