Acquisition brings Control4 industry-leading acoustics expertise and a full line of premium audio-speaker solutions.
Salt Lake City, Utah – February 28, 2016 6:30 am ET – Control4 Corporation (NASDAQ: CTRL), a leading global provider of smart home solutions, today announced the acquisition of Triad Speakers, Inc., a leader in advanced audio technology with best-in-class, customizable speaker-solutions.
“Entertainment is integral to the connected home and our Control4 dealers are designing end-to-end experiences for family room entertainment, home theaters, and indoor and outdoor multi-room music for their customers,” said Martin Plaehn, Control4 Chairman and CEO. “The acquisition of Triad brings proven premium-acoustics experience and innovation to our company, enabling us to immediately deepen our entertainment offering and develop new integrated-audio experiences for the future.”
Triad’s 30-year heritage of delivering exceptional audio solutions is rooted in its unwavering attention to audio design and detail, its uncompromising focus on the quality of the listening experience, and the specialty customization of its products. Triad manufactures a comprehensive range of high-quality, built-to-order premium audio speakers to meet the discerning demands of homeowners – for home theaters, family rooms, whole-home or multi-room audio, as well as for outdoor environments. The company’s focus on elegant design integration has been delivering customized audio experiences that feature beautiful sound while enhancing a home’s décor. The acquisition of Triad is a strategic addition to the Control4 entertainment portfolio, which includes the fully programmable Control4® EA-series controllers with native high-resolution streaming music services, its family of multi-room audio matrix switches and amplifiers, and its family of ultra-HD 4K video matrix switches with audio down-mixing capabilities.
“At Triad, high-quality audio, custom design, and seamless integration have been the standards that we will continue delivering to our dealers and their end customers,” said Larry Pexton, founder and CEO of Triad. “Becoming part of the Control4 family enables us to expose our engineering expertise to those homeowners in the broader market of home automation and entertainment who are passionate about their listening experience.”
Effective immediately, all Triad dealers in North America are now able – for the first time – to place their product orders and customization requests via a brand new online dealer portal. Control4 and Pakedge dealers may also order Triad solutions online, starting today. In the coming weeks, the Triad dealer portal will also include technical training information and additional marketing resources.
Nearly the entire Triad team will be joining Control4, including founder Larry Pexton, as well as the Triad’s R&D, manufacturing, and custom-services employees, all of whom will continue operating from Triad’s existing facility in Portland, Oregon.
Total consideration for the acquisition of Triad consisted of $9.6 million in cash. Triad generated approximately $9 million in revenue in 2016. Control4 plans to invest in the operations of the business during 2017 in order to push adoption of these products through its larger sales channels. As a result, Control4 anticipates that the acquisition will be net income neutral in 2017, after adjusting for acquisition related expenses. Control4 will provide guidance for the second quarter and update its annual guidance to include the operations of Triad at its next earnings call.
Control4 [NASDAQ: CTRL] is a leading global provider of automation and networking systems for homes and businesses, offering personalized control of lighting, music, video, comfort, security, communications, and more into a unified smart-home system that enhances the daily lives of its consumers. Control4 unlocks the potential of connected devices, making networks more robust, entertainment systems easier to use, homes more comfortable and energy efficient, and families more secure. Today, every home and business needs automation horsepower and a high-performance network to manage the increasing number of connected devices. The Control4 platform interoperates with more than 10,000 third-party consumer electronics products, ensuring that an ever-expanding ecosystem of devices will work together. Leveraging a distribution channel that includes over 3,900 custom integrators, retailers, and distributors in 91 countries that are authorized to sell the full-line of Control4 products, with over 1,100 additional dealers and distributors that are authorized to sell our Pakedge-branded networking solutions only, Control4 is delivering intelligent solutions for consumers, major consumer electronics companies, hotels, and businesses around the world.
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding Control4’s acquisition of Triad, its planned investments in the Triad business, the anticipated adoption of the Triad products by its dealers and distributors, as well as any possible future product integration and resulting improvement in the Company’s financial outlook. All statements other than statements of historical fact contained in this press release are forward-looking statements. These forward-looking statements are made as of the date they were first issued, and were based on the then-current expectations, estimates, forecasts, and projections, as well as the beliefs and assumptions of management. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Control4’s control. Control4’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in Control4’s most recent Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission, as well as other documents that may be filed by the company from time to time with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent Control4’s views as of the date of this press release. The company anticipates that subsequent events and developments may cause its views to change. Control4 has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. These forward-looking statements should not be relied upon as representing Control4’s views as of any date subsequent to the date of this press release.