Control4 Corporation has announced the acquisition of Pakedge Device & Software, Inc., manufacturer of networking products and cloud network-management services for both wireless and wired networking solutions for the connected home and business.
Control4 acquired Pakedge for approximately $32.7 million (£22.5m) 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.
The Pakedge founders, senior management team and broader organisation are joining Control4.
The Pakedge teams in Huntington Beach and Hayward, California and its independent development office in Belgrade, Serbia, will begin working together with Control4 to create, market and support tightly integrated solutions for the connected smart home and business.
Pakedge had approximately $18.5 million (£12.7) in sales in 2015, delivered through its professional sales and installation channel of 1,700 independent dealers, 560 of which are also Control4 certified dealers.
Control4 intends to fully support the Pakedge product-line for all Pakedge dealers, regardless of whether they are also Control4 certified dealers.
Pakedge dealers will continue to order product from the Pakedge dealer portal while Control4 dealers will now be able to order the most popular Pakedge products via the Control4 dealer portal, which will expand to offer the full Pakedge line in the near term.
The combined company intends to grow both the Pakedge and Control4 businesses through a combined dealer channel of over 4,700 dealers.
All qualified dealers will be encouraged to explore both product-lines and the combined Control4 and Pakedge team intends to actively cross-train and cross-certify dealers who desire to represent both product lines but are currently only qualified for one.
“The connected consumer, connected home and connected business opportunity is expanding along with the complexities of supporting thousands of different devices and services in homes and business around the world,” says Martin Plaehn, Control4 Chairman and CEO.
“By embracing networking as an expanded core-competency, integrating it tightly with our entertainment and automation capabilities and delivering a single cloud-based reporting and management solution, Control4 will be able to harness the expanding opportunity, bring more simplicity to the complicated, and increase satisfaction for our end customers.”
“Pakedge began 12 years ago with the strategic vision that everything, starting with audio/video systems, will be connected over an IP-based platform,” comments Victor Pak, Pakedge founder and CEO. “Our success was driven by a combination of customer focused innovation, engineering excellence and passionate customers. Control4 shares our corporate philosophy and strategic vision. Joining together is a logical and exciting step to accelerate the realisation of that vision for our customers.”