SnapAV To Buy Control4 In $680 Mln All-cash Deal - Quick Facts

(RTTNews) - SnapAV, a manufacturer of A/V, surveillance, networking and remote management products, has agreed to acquire Control4 Corp. (CTRL), a provider of smart home solutions, for $23.91 per share in cash, representing an aggregate value of about $680 million, the two companies said Thursday.

The purchase price represents a premium of about 40 percent over Control4's closing price on May 8, 2019, the last trading day prior to execution of the agreement. The transaction is expected to be completed in the second half of 2019.

The companies noted that their merger will provide integrators with a true one-stop shop that offers a complete product portfolio of custom smart-home, control and automation solutions.

Control4 said its Board of Directors has unanimously approved and recommended that its stockholders vote in favor of the transaction. 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 this time, the board will actively solicit and evaluate alternative acquisition proposals, and potentially enter into negotiations with any parties that offer an alternative acquisition proposal. Control4 will have the right to terminate the merger agreement to accept a superior proposal.

SnapAV said that private equity investment firm Hellman & Friedman, its majority shareholder since 2017, will invest additional equity as part of the transaction and be the majority shareholder of the combined company.

More than 1,200 employees of the combined company will be led by SnapAV CEO John Heyman and an executive team made up of leaders from both SnapAV and Control4. Control4 CEO Martin Plaehn will join the board of directors of the combined company.

The company will share joint headquarters in Charlotte, North Carolina, and Salt Lake City, Utah, with offices and local facilities around the globe.