“The future of smart living is here,” proclaims Snap One CEO John Heyman on the eve of his company’s $1.4 billion acquisition by Resideo Technologies. Expected to close during the second half of this year, the companies hope to capitalize on Americans’ increasing appetite for smart home technologies. Just a few years ago, smart lighting and appliances were viewed primarily by consumers as novelty items with little added value – but that perception has changed as tech has spread further into televisions, security systems, thermostats, and other areas of the home.
“Snap One has grown from a startup built by entrepreneurial integrators to an industry leader in smart technology, delivering seamless experiences to consumers and high-quality services and support to our integrators,” according to the companies’ joint press release. “Demand for connected technology products continues to grow, and Resideo is the right owner to drive our expansion.”
85% of Americans own at least one smart home device. The vast majority of those are smart televisions and other entertainment products, such as speakers. According to Statista, “From intelligent thermostats keeping your living room nice and cozy and automated lighting systems setting the scene to voice-activated assistants switching on your coffee machine first thing in the morning, these cutting-edge technologies have become integral components of modern households.”
While wired smart home devices date back to the 1970s’ X10 communication protocol, the system remained expensive and not widely used until wireless breakthroughs of the 2000s. By the 2010s, Amazon, Google, and Apple moved into the space, selling voice activated smart assistants that could wirelessly connect devices around the home.
Consumers are not all happy with the new devices, however. A third of Americans surveyed state that smart devices add no value beyond entertainment. This is in good part due to difficulty using the devices, with approximately 17% of those surveyed reporting that the contraptions make daily activities more difficult.
The next frontier for smart home devices: artificial intelligence. Companies are already building integrated AI into their virtual assistants, which they expect to provide more lifelike capabilities to users – to the alarm of some tech innovators.
According to DealPulse’s comprehensive M&A database, which harnesses AI to track current and historical deals, Resideo is advised by law firm Willkie Farr & Gallagher LLP, while Snap One is advised by Simpson Thacher & Bartlett LLP.
