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Great, just perfect. ....let's see if they can do a better job than with HL

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Very interesting indeed, just got my letter from SnapAV with the announcement. 

Many here have stated they have always been a takeover prospect but honestly didn't see it being SnapAV...  Shall be interesting to see how the stock reacts. 

Good for everyone involved, hopefully!

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1 minute ago, cdepaola said:

Very interesting indeed, just got my letter from SnapAV with the announcement. 

Many here have stated they have always been a takeover prospect but honestly didn't see it being SnapAV...  Shall be interesting to see how the stock reacts. 

Good for everyone involved, hopefully!

Im not Mr Wall Street 101 but the stock price sale seems fixed so doesn't that mean the stock is off the board for trading?

SnapAV, a leading manufacturer and primary source of A/V, surveillance, networking and remote management products for professional integrators, and Control4 Corporation (NASDAQ: CTRL) (“Control4”), a leading global provider of smart home solutions, today announced that they have entered into a definitive merger agreement (the “Agreement”) whereby SnapAV will acquire Control4 in an all-cash transaction for $23.91 per share in cash, representing an aggregate value of approximately $680 million.

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No and the stock, Pre-market, is +6.76 (39.49%) to 23.88

the sale also must still approved by shareholders and regulators.  

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I am stoked about this! That said, I liquidated my position in C4 stock last week at $17.XX per share. Should have held on another week, damn it! LOL

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I think this could be good for everyone!  WoooHooo!

Why?

 

They didn't do a good job with the HouseLogix takeover from the perspective of Control4 owners with drivers from HL.

 

It can go either way with such takeovers, from improvements to discontinuation of products and brands..

 

One thing I was not aware of is that SnapAV is bug enough to pay 600m in cash.

 

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2 minutes ago, blub said:

Why?

 

They didn't do a good job with the HouseLogix takeover from the perspective of Control4 owners with drivers from HL.

 

It can go either way with such takeovers, from improvements to discontinuation of products and brands..

 

One thing I was not aware of is that SnapAV is bug enough to pay 600m in cash.

 

I agree, after the HL disaster I cannot say I am thrilled at all.  I was waiting on some new controllers/Touch Screens and planned a big refresh this fall if those items were released.  I am 100% on the opposite end of the spectrum now taking a very cautious wait and see approach.  How this impacts the end user experience with dealers, ComposerHE, etc.  I've sunk enough into C4 I would not rip it out ASAP but I am not very optimistic this morning.

Also SnapAV does not have the cash, but they have money behind them:

Private equity investment firm Hellman & Friedman—SnapAV’s majority shareholder since 2017—will invest additional equity as part of the transaction and be the majority shareholder of the combined company.

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i guess the real question now is the 600 mil valuation on C4 and SnapAV being a privately held company, do I sell my shares today or wait and hope the deal does not go south.  The deal is 23.91 a share but now trading above 24.  Is there another buyer that could step in?  Maybe I just need to consult the Magic 8 Ball for advice?!?!

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God I cant help but think this is the beginning of the end, if I had the stock and was in the green I would sell it, but I think Control4 will be a brand of the past in the next 5 years sadly. 

 

Their innovation in the last 72 months has been laughable. Other players and NEW players are innovating circles around Control4

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[quote post="246519" timestamp="1557412197"
 
Their innovation in the last 72 months has been laughable. Other players and NEW players are innovating circles around Control4


Which players and what products r u talking about? - I agree on the baseline of low innovation, that's for sure

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This seems nuts for SnapAV to buy. They have already bought other comparable products.

This is probably good news for dealers. Without pressure from investors anymore to expand its footprint, there is little chance the C4 product would move more into the DIY realm that investors would have inevitably wanted.

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I like this as SnapAV makes a lot of components that are in typical C4 rack builds like switches, rack itself, etc and this could lead to some better supported security products like cameras.

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1 minute ago, Destroyer of Worlds said:

I like this as SnapAV makes a lot of components that are in typical C4 rack builds like switches, rack itself, etc and this could lead to some better supported security products like cameras.

But C4 has switches (pakedge), their own branded cameras, triad audio speakers, etc.  Not saying its necessarily bad but a lot of the ancillary component stuff certainly does have some redundancy.  Another one is Control4 with ihiji vs Snap OVRC.  this could be good or bad depending on where you are invested product wise.

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Which comparable products did SnapAV buy that offer HA?

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14 minutes ago, blub said:

Which comparable products did SnapAV buy that offer HA?

they didnt buy (dont think) but they distribute Clare products which have alarm and HA products like light switches, thermostats, doorbells, etc

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3 minutes ago, knowitall said:

And just like that, ComposerPro for everyone!

There won't be enough tech support available to handle all the calls for HC300 initial set up issues

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29 minutes ago, eggzlot said:

they didnt buy (dont think) but they distribute Clare products which have alarm and HA products like light switches, thermostats, doorbells, etc

correct.  and i would'nt be surprised if that went away now. 

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43 minutes ago, blub said:

Which comparable products did SnapAV buy that offer HA?

its more about the other things that C4 has bought. C4 spent lots of money to buy networking, remote monitoring, video distribution, and high end audio distribution. Snap had all those things already so they are basically only adding a HA platform and are paying 650(?) million for it. 

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4 hours ago, eggzlot said:

Also SnapAV does not have the cash, but they have money behind them:

Private equity investment firm Hellman & Friedman—SnapAV’s majority shareholder since 2017—will invest additional equity as part of the transaction and be the majority shareholder of the combined company.

And PE firms typically use a lot of debt in the capital structure of their portfolio companies.  $680M is the EV of the transaction but it may be financed with $340M of debt and $340M of equity, assuming that the cash flow from C4 is stable enough that banks or other credit providers will lend.

One thing I would expect would be to try to move to more of a subscription basis as that is what PE firms love, and it is what is happening with all software companies now - although C4 is only partially a software company.  4sight is probably the tip of the iceberg.

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