ADI Global Distribution - Experts & Thought Leaders

ADI Global Distribution, a pioneering wholesale distributor of security, AV and low-voltage products, announced it has expanded its operations into Germany. This expansion marks a significant milestone in the company's growth strategy, and underscores its commitment to delivering innovative and reliable security, AV and low voltage products. Integrated solutions “ADI's entry into Germany represents a pivotal moment for our company, and we are excited to bring our extensive product portfolio to this market,” said Hemant Trivedi, Vice President & General Manager, International, ADI.   “Our goal is to support German customers with the products, support, and services they need to build complete, integrated solutions. We're committed to fostering strong customer and supplier relationships to drive shared success, and continue expanding our presence across the country." ADI's comprehensive portfolio ADI has staffed a full team across a variety of functions to support German customers With a new country headquarters office located in Düsseldorf, Germany, ADI has staffed a full team across a variety of functions to support German customers including dedicated field sales, inside sales support, technical field and desk-based support, marketing, digital experience, finance and more. ADI's comprehensive portfolio includes products from more than 45 pioneering brands across video surveillance, intrusion and smart home, access control and communications, fire, data communications and audio visual. In addition to a diverse range of products, ADI offers numerous value-added services including pre- and post-sales support, local expertise, training, online ordering, and more. ADI's extensive product and services To commemorate its entrance into Germany, ADI will exhibit at the upcoming Security Essen international trade fair from 17-20 September. Attendees are invited to stop by Hall 5, stand 5B33 to meet the local ADI team, learn more about ADI's extensive product and services offering, and see how ADI can help to grow their business.   ADI Germany will be led by Frank Lehrich, Country Sales Pioneer, who is focused on ensuring the company's offerings are tailored to meet the evolving needs of the German market.

Resideo Technologies, Inc., a manufacturer and distributor of technology-driven products and solutions, and Snap One Holdings Corp., a provider of smart-living products, services, and software to professional integrators announced a definitive agreement under which Resideo has agreed to acquire Snap One for $10.75 per share in cash, for a transaction value of approximately $1.4 billion, inclusive of net debt. Upon closing, Snap One will integrate into Resideo's ADI Global Distribution business. Smart living ADI and Snap One will provide integrators with both third-party products and proprietary offerings The transaction will combine ADI's strong position in security products distribution and Snap One's complementary capabilities in the smart living market and innovative Control4 technology platforms, which is expected to drive increased value for integrators and financial returns. Together, ADI and Snap One will provide integrators with an increased selection of both third-party products and proprietary offerings through an extensive physical branch footprint augmented by industry-pioneering digital capabilities. Cost savings “The acquisition of Snap One is an exciting step in Resideo’s continued transformation through portfolio optimisation, operational enhancements, and structural cost savings actions,” commented Jay Geldmacher, Resideo’s President and Chief Executive Officer. “ADI and Snap One are highly complementary businesses and together will meaningfully enhance our strategic and operational capabilities as a significant player in attractive growth categories." Residential and commercial applications "We are excited about the enhanced value proposition through increased product breadth, local availability, support services, and broad market expertise, as well as the future opportunities this creates for integrators serving residential and commercial markets." "In addition, the investment by Clayton, Dubilier & Rice is a testament to the strategic and financial merits of this transaction and provides financial flexibility as we continue to transform and optimise our portfolio. We look forward to the ADI and Snap One teams working together to drive value for all stakeholders through executing on the substantial business and financial synergies we see in combining the two businesses."  High-quality services and support “Snap One has grown from a startup built by entrepreneurial integrators to an industry pioneer in smart technology, delivering seamless experiences to consumers and high-quality services and support to our integrators,” said John Heyman, Chief Executive Officer of Snap One. “This is the right next step to capture new opportunities to bring our solutions to market. 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. We believe this transaction will deliver compelling value to our stakeholders and will create opportunities for our people and integrator partners.” Strategic acquisition This cross-category expansion will allow the combined organisation to materially deepen relationships "We are excited to support Resideo on this highly strategic acquisition and in their ongoing transformation," commented Nathan Sleeper, CD&R's Chief Executive Officer. "I look forward to joining Resideo's Board of Directors and supporting the business as it executes this transaction and the significant opportunity we see available over the coming years." Benefits of the transaction A Strong Position Across Multiple Attractive Categories:  The acquisition will combine Snap One's capabilities for smart living integrators with ADI's complementary position in adjacent security product distribution. This cross-category expansion will allow the combined organisation to materially deepen relationships with integrators to better serve their customers and expand their businesses.  Expansion of Proprietary Offering:  The combination is expected to meaningfully accelerate ADI's existing exclusive brands strategy, leveraging Snap One's award-winning proprietary product portfolio and product development expertise while providing broader availability through ADI's network of commercial and residential integrators and omnichannel capabilities. The combined company intends to leverage increased opportunities around innovation to drive value for integrators through a pipeline for proprietary products. Snap One generated 66% of sales from proprietary products in 2023 and these offerings typically carry significantly higher gross margins than third-party products. Enhanced Integrator Value Proposition:  ADI's and Snap One's professional integrators will benefit from significant synergy on go-to-market with Snap One's e-commerce expertise and integrator support platforms and ADI's 195 stocking locations and extensive digital capabilities. The combination is expected to create a true omni-channel experience for integrators, simplifying the buying experience and enhancing product availability. Additional opportunity exists to enhance value within the Control4 integrator base through increasing service levels, rapid product fulfillment, and expanding exclusive offerings. Attractive Financial Profile: Transaction financing has been structured to allow Resideo to preserve financial flexibility for future strategic initiatives The transaction is expected to be accretive to Resideo's non-GAAP EPS in the first full year of ownership, with favorable revenue growth and margin profile to ADI and Resideo as a whole. Transaction financing has been structured to allow Resideo to preserve financial flexibility for future strategic initiatives. Transaction details The transaction is valued at approximately $1.4 billion, including the forecasted net debt of Snap One at the closing of approximately $460 million. This represents a 7.4x multiple on Snap One's Adjusted EBITDA for the twelve months ended December 29, 2023, as further adjusted by including Resideo's projected annual run-rate synergies of $75 million. Customary closing conditions  The transaction is expected to be completed in the second half of 2024 and is subject to customary closing conditions, including receipt of applicable antitrust and other regulatory approvals. The transaction has been unanimously approved by the Boards of Directors of Resideo and Snap One. Private investment funds managed by Hellman & Friedman LLC, holding approximately 72% of the outstanding common shares of Snap One, have executed a written consent to approve the merger, thereby providing the required stockholder approval for the transaction. Convertible preferred equity investment Terms of the CD&R investment include a 7% coupon, payable in cash or payment-in-kind at Resideo's option Resideo intends to use proceeds from committed debt financing, cash on hand, and a $500 million perpetual convertible preferred equity investment from Clayton, Dubilier & Rice LLC ("CD&R") to fund the transaction. Terms of the CD&R investment include a 7% coupon, payable in cash or payment-in-kind at Resideo's option, and a conversion price of $26.92. CD&R brings a long track record of value creation through its investments and significant experience in the specialty distribution market. Effective upon the closing, CD&R will have the right to designate two members to the Board of Directors of Resideo. Transaction conference call information Resideo will host a conference call at 8:00 a.m. Eastern Time on April 15, 2024, to discuss the transaction. Interested parties may join the call where related materials will be posted before the call, or by phone at 646-968-2525 or 888-596-4144 with the conference ID: 7959274.  Resideo preliminary first quarter 2024 financial results For the first quarter ended March 30, 2024, Resideo's preliminary expectations are for revenue of approximately $1,485 million, compared with the outlook of $1,460 million to $1,510 million and Adjusted EBITDA above the midpoint of the outlook of $120 million to $140 million provided in the fourth quarter and full-year 2023 results press release dated February 13, 2024. Resideo intends to release first quarter 2024 financial results after the close of the New York Stock Exchange on Thursday, May 2, 2024, and host a webcast conference call at 5 p.m. ET. Advisors Evercore and Raymond James & Associates, Inc. are acting as financial advisors and Willkie Farr & Gallagher LLP is acting as legal counsel to Resideo. Bank of America and Morgan Stanley have provided committed financing for the transaction and are also acting as advisors to Resideo. Moelis & Company LLC and J.P. Morgan Securities LLC are serving as financial advisors to Snap One and have each provided a fair opinion to Snap One's board of directors. Simpson Thacher & Bartlett LLP is serving as Snap One's legal counsel.

Resideo Technologies, a pioneering global provider of solutions for home comfort, security and safety, unveiled the First Alert® VX5 Indoor Camera at ISC West 2024 (exhibitor stand #10047). The indoor camera is the latest addition to the award-winning First Alert VX  Series – which includes the First Alert Outdoor Camera and Video Doorbell – and it features accurate artificial intelligence (AI) event detection, a unique automated privacy mode and flexible installation options that meet the needs of professional security dealers. Deliver end-to-end solutions “We’re committed to expanding the coverage and functionality of our security offerings to deliver end-to-end solutions that deliver new services and business growth for our professional security customers,” said Pat Tessier, Senior Director of Product Marketing at Resideo. “Resideo’s First Alert cameras and professionally installed systems offer a platform that can be fully connected – from the outdoors, to the front door and inside – providing complete home security protection for customers.” Offers of indoor camera  The indoor camera offers: Advanced event detection: Intelligent capabilities detect people, pets, and vehicles, helping to keep family and belongings safe and secure even when users aren’t at home. High-quality video and audio: Sharp, two-megapixel resolution provides both day and night vision and a wide field of view. Two-way talk enables user engagement and interaction. Privacy mode: Users can select Privacy Mode from the app or by pushing a button on the camera to activate its built-in privacy shield, which prevents the camera from recording video and audio. By integrating with the ProSeries security panel, the privacy shield opens effortlessly when the system is armed and closes when the system is disarmed. One-App control of the connected home: Resideo’s Total Connect 2.0 app puts control of the home security system in the hands of home users, providing easy access to arm, disarm, and check alerts for their security system. Resideo’s security offerings The First Alert Indoor Camera complements Resideo's existing professional security offerings and provides a whole-home awareness, intrusion and security platform. Security dealers can offer flexible installation options and a variety of AlarmNet 360 video service plans to deepen recurring monthly revenue.   The indoor camera will be available at ADI Global Distribution, a Resideo company, this summer. Homeowners interested in Resideo’s security offerings can visit the website.

Big news on the mergers and acquisitions (M&A) front is closing out 2024, a year in which several shifts changed the face of the physical security manufacturer community. Announced in December, German giant Bosch Group is selling its Building Technologies division’s product business for security and communications technology to the European investment firm Triton.  Bosch division selling to Triton  The transaction encompasses three business units – Video, Access and Intrusion, and Communication – and thus the entire product business of Bosch Building Technologies that was offered for sale. All 4,300 associates employed in these units at more than 90 locations worldwide will be taken over. The transaction reflects a growing confidence in the security market among private equity companies such as Triton, Becklar, and Volaris.   Sharing best practices Acre Security and Bosch will remain independent, standalone companies under Triton’s ownership Acre Security, previously acquired by Triton, has benefited from Triton’s strategic guidance and expertise, according to the company, which is confident Bosch will experience the same level of support and opportunity to thrive. Acre Security and Bosch will remain independent, standalone companies under Triton’s ownership, but will benefit from the potential to collaborate and share best practices as part of the broader Triton portfolio.  Resideo acquires Snap One  Earlier in 2024, there were other large M&A transactions. In the spring, Resideo Technologies, Inc., a manufacturer and distributor of technology-driven products and solutions, agreed to acquire Snap One Holdings Corp., a provider of smart-living products, services, and software to professional integrators. The transaction is valued at $1.4 billion, inclusive of net debt. Upon closing, Snap One becomes part of Resideo's ADI Global Distribution business.  Honeywell buys Carrier’s Access Solutions  In late 2023, Honeywell announced plans to enhance and strengthen its building automation capabilities with the acquisition of Carrier Global Corporation’s Global Access Solutions business for $4.95 billion, in an all-cash transaction.  The acquisition, which played out through 2024, includes both hardware and software solutions, adding three respected brands to Honeywell’s portfolio with a focus on life safety and digital access solutions. Acquired brands include LenelS2, commercial and enterprise access solutions; Onity electronic locks; and Supra cloud-based electronic real estate lock boxes. Hirsch reemerges as an iconic brand  The Identiv sale was originally announced in April, subject to regulatory approval Identiv announced plans to sell its physical security business and assets to Vitaprotech, the security solutions provider that also acquired British manufacturer, TDSI, in 2019. The Identiv sale was originally announced in April, subject to regulatory approval.  As a result of the sale, Hirsch, a global security technology pioneer advancing physical security, video intelligence, cybersecurity, and digital identification solutions, announces the relaunch of its iconic brand and strengthened focus on the industry’s most complete high-security, end-to-end platform.  Ease of use security solutions The move seeks to reposition Hirsch as the global pioneer in physical security, video intelligence, and identity solutions, protecting everything from small enterprises to critical national infrastructure. With a 43-year-strong foundation in the industry, Hirsch’s mission has always been empowering a secure, connected world, combining government-grade high security with ease of use. Milestone and Arcules unite  Effective July 1, 2024, global video technology company Milestone Systems announced its merger with the cloud-based video surveillance solutions provider, Arcules. Both companies are owned by Japanese multinational Canon Inc. Based in Irvine, Calif., Arcules was spun off from Milestone in 2017. The merger brings together Milestone and Arcules’ best-in-class capabilities within video management software (VMS), video analytics, and video surveillance as a service (VSaaS), providing a complete video technology offering.  More M&A stories in 2024  In other M&A moves in 2024, cloud-based workforce management software provider Synerion USA Inc. acquired cloud-based video surveillance and access control solutions platform Qumulex Inc. Also, the global pioneer in airspace awareness and security, Dedrone, became part of the public safety and technology company Axon. The acquisition unites two companies with a shared mission to improve public safety and national security by staying ahead of persistent and escalating threats, enabling faster, more effective responses and ultimately protecting more lives in more places.

The Electronic Security Expo (ESX) will be held at the Indiana Convention Center, June 3-6, in Indianapolis. The show focusses exclusively on the electronic security and life safety industry, including companies that service the connected Internet of Things (IoT) space for homes and businesses. The ESX Main Stage will highlight inspirational presentations from motivational speakers, Dr. Rick Rigsby and Kevin Brown. In addition, there will be a founder of a drone security company and an Entrepreneur-in-Residence from Kleiner Perkins for OpenXchange, and a Secret Service agent for the Closing Keynote. Sharing best practices and trends In breakout sessions, colleagues and business thought leaders will share best practices, trends and opportunities that helped their own companies and careers, so that others might replicate their successes or minimise their failures. These sessions are aimed at propelling attendees to reimagine their business models and go-to-market strategies, says George De Marco, Chairman of ESX and Managing Partner for DECO Ventures LLC. Examples of breakout sessions include: CounterPoint Forum – “False Alarm Dispatches - A Real Threat or a Nuisance to the Industry?” “Top 3 Ways to Grow Your Video RMR” “5 Faster, Smarter Ways to Improve Cash Flow” “Artificial Intelligence Real Time Video Monitoring Solutions” Promoting security professionals’ growth Our goal is to develop next-gen methods that deliver industry content and promote professional growth"“Each year, we challenge ourselves to raise the bar of the educational sessions and main stage events,” says De Marco. “One of the ways is introducing new faces and voices for the peer-developed and peer-driven educational sessions that offer best practices and identify trends, opportunities and challenges for industry professionals to consider today and in the future. Our goal is to develop next-gen methods that deliver industry content and promote professional growth as the industry pivots to the future.” New entrants and disruptors are challenging traditional go-to-market strategies, causing traditional companies to rethink how they rise above the noise in a changing competitive landscape and handle new consumer buying behaviours, says De Marco. Exhibitors at ESX Exhibitors that support ESX include Interlogix (Diamond sponsor), Napco (Platinum sponsor), Alula and DMP (Gold sponsor), and ADI, Altronix, Bold Group, Essence, ICT, Quick Response, Resideo, Secura key, Security Central and WeSuite (Silver sponsors). ESX seeks to connect exhibitors with the influencers and decision-makers from companies that represent a cross section of dealers, integrators and monitoring companies in North America. The exhibit hall will be the focal point for exhibitors to showcase their latest technology in the city’s impressive convention centre. The exhibit hall will be the focal point for exhibitors to showcase their latest technology in the city’s convention centre “We recognise individuals and companies during the Opening Celebration that help propel the industry forward and at our VIP Event at the Indianapolis Motor Speedway,” says De Marco. “During the day, there are meals around the Main Stage sessions which gather attendees around the table for casual conversation before the presentation begins.” Indianapolis, home of the Indy 500, is a unique location that has a lot to offer the attendees of ESX. A special night at the Indianapolis Motor Speedway will invite a limited number of guests to share great food and drinks, to experience a trip around the track in an official pace car, and to ‘kiss the bricks’, a speedway tradition. Centrally located in the US, Indianapolis is a convenient convention destination for travel, whether flying or driving. Connecting with peers and colleagues Another benefit of the show is the cross-section of companies represented in the industry, whether large, medium or small There are also networking opportunities throughout the week. The Pub Crawl, an attendee favourite, is a night where long-time friends gather, and new friendships are made. “This is where the real conversations happen between peers and colleagues about real problems of running and growing a company, and solutions that can make a difference,” says De Marco. Another benefit of the show is the cross-section of companies represented in the industry, whether large, medium or small players. This enables professionals to come together to connect with their peers and colleagues, allowing for deep discussions on how to grow their people, revenues and profits, including mentoring opportunities that encourage leadership development, says De Marco. The subject of finding qualified employees is top of mind for almost every industry today, especially the security industry. Sessions that address hiring and managing employees for industry professionals include  “Hiring from Outside the Monitoring Industry: Surprising Resources for Great Operators” “Maximise New Employees: Why Onboarding is Critical to Their Success” “5 Tips for Effective Employee Performance Evaluations” Helping attendees to reinvent their business “Our focus is primarily on the attendee, helping them connect with suppliers, colleagues and opportunities that reimagine their businesses, so they can be stronger competitors,” says De Marco. “If we can provide the right knowledge to inspire or transform the attendees to take meaningful action or implement change that helps them remain relevant, we believe we have succeeded.” There will be an undercurrent of sadness at ESX this year because the industry recently suffered a loss. George Gunning, former CEO of USA Alarm Systems and one of the founding members of ESX, passed away in February. “We would be remiss if we didn’t recognise his contributions and influence on the industry and ESX over the years,” says De Marco. Another founding member of ESX who has passed away is John Murphy, formerly CEO of Vector Security.

In a year of mega-deals impacting the security marketplace, one of the big news stories recently was a deal that did not happen – between giants Honeywell and United Technologies (UTC). Financial news pages have been full of the back-and-forth between these two companies. It seems Honeywell wanted to merge with UTC, but UTC declined because of “insurmountable regulatory obstacles and strong customer opposition.” So the deal is off, at least for now. Impact on the security market The deal, which could have resulted in a $160 billion conglomerate, involves many more business units than security, of course. United Technologies and Honeywell both operate in a long list of business categories. Some of them compete, which is the reason for possible antitrust (regulatory) concerns. The security part of the puzzle isn’t even the largest, and yet such a merger could have a big impact on our industry, which has already been rocked by the Johnson Controls-Tyco and ADT-Protection 1 deals announced in the last month or so. Although the merger is officially off, one wonders if some other scenario could surface. There are often questions in our industry about whether a large conglomerate is the best environment for security manufacturing and distribution businesses to thrive, or if they might better succeed in a different situation. The question becomes even bigger if the conglomerate doubles in size (and starts looking for ways to cut expenses to justify the merger to shareholders). Honeywell emerged as a topic on the business pages in another context, too. The company is looking to sell its building-solutions business (which includes some of its security market presence), worth between $3 billion and $4 billion, according to one report. So at the same time they are trying to accomplish a megamerger (with UTC), Honeywell is looking to sell off one of its business units. The sprawling conglomerate is looking to become either bigger or smaller. This narrative, too, could play out any number of ways. We need a scorecard to keep up with what’s going on among some of the security industry’s largest players. Who knows what will come next or when? Stay tuned.  Other acquisitions by Honeywell Amid all this non-news are also some actual events: Honeywell announced the acquisition of RSI Video Technologies, a provider of intrusion detection with video verification sold under the Videofied product line. About a month ago, Honeywell acquired Xtralis, a provider of early fire and intrusion detection technologies. Both these businesses fit well with their security and fire portfolio and appear to build on their value to the market. David Paja, President, Honeywell Security and Fire, said the Xtralis acquisition “strengthens our offering for critical infrastructure and high-value assets." It’s good to know they are building their security presence even as broader questions and corporate machinations grab the headlines.