Today, Control4 announced the acquisition of Pakedge Device & Software, Inc., a network switch and routing company that was like the Cisco of AV networking as they’ve focused on HomeAV and ProAV IT infrastructure.
- Market Dynamics: Networks are the foundation of everything connected, but most home networks today are not fully ready for the expanding requirements of a truly-connected home. Seamless, scalable, reliable, and secure networks are not just desired, they are required. Pakedge provides Control4 with this important foundation for use in any connected home or business.
- Technology Leadership: Pakedge brings to Control4 deep networking expertise, and an industry-leading suite of networking products and rich software capability, as well as integration with a growing list of third-party products. The Pakedge firmware running within their products and their cloud-service software enable dealers and homeowners to monitor, configure, and reset their home networks.
- Channel Synergy: Like Control4, Pakedge conducted their business through a broad channel of ~1,700 independent dealers, of which only one third are currently certified Control4 dealers – presenting Control4 with an opportunity to grow the Pakedge product sales through the Control4 dealer network while adding approximately 1100 new dealers.
Control4 acquired Pakedge for approximately $32.7 million in cash on January 29, 2016. Control4 expects the acquisition to contribute to revenue growth, and to be both Gross Margin and EPS accretive on a non-GAAP basis for the full-year 2016.