SnapAV, founded in 2005, is a manufacturer of A/V, surveillance, networking and remote management products for professional integrators. Control4 is a provider of smart home solutions. According to a company statement, Control4’s board of directors unanimously approved the transaction and recommended that stockholders vote in favour. Under the terms of the agreement, SnapAV will acquire all the outstanding common stock of Control4 for US$23.91 per share in cash. The purchase price represents a premium of approximately 40 per cent over Control4’s closing price on May 8, 2019.
The merger will create a company of more than 1,200 employees.
“We have pursued the mission of making our integrators’ lives easier since SnapAV was founded,” said John Heyman, CEO, SnapAV 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.”
“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 Martin Plaehn, chairman and CEO of Control4.
Upon closing, 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.
The company will share joint headquarters in Charlotte, N.C., and Salt Lake City, Utah, the current HQ of Control4.
As part of the agreement, Control4’s Board of Directors, with the assistance of its advisors, will conduct a 30-day “go-shop” process following the date of the execution of the definitive agreement, during which it time it will solicit evaluate alternative acquisitions proposals.
Simpson Thacher & Bartlett LLP is serving as legal advisor to SnapAV. Raymond James & Associates, Inc. is serving as financial advisor to Control4 and Goodwin Procter LLP is serving as legal advisor.
Subject to closing and regulatory approvals, the SnapAV acquisition of Control4 is expected to be completed in the second half of 2019.