Deal to be done by October 31, 2009
October 6, 2009

Russound's acquisition of Colorado vNet places them squarely in the whole house automation market.

In breaking news published yesterday by Jason Knott of CePro, Russound and Colorado vNet have signed a definitive letter of intent (LOI) agreement under which Russound will acquire the assets of privately-held Colorado vNet. Terms of the transaction between the two companies were not disclosed. Since Colorado vNet was on the verge of a potential shutdown, presumably their asking price was attractive to Russound as well. The LOI states the deal will be done by October 31, 2009.

The Colorado vNet brand name will remain intact, and the company will continue to operate out of offices in Loveland, Colo. Russound is based in Newmarket, N.H.

Russound CEO Charlie Porritt says “One of Russound’s goals has been to offer control solutions for security, lighting and thermostats. This acquisition immediately gives us access to offering home control through a company that we will own and control, and the ability to merge some of that control technology into Russound products."

In addition to the vNet automation products, Russound obtains Colorado vNet's 950 direct dealers, of which only about 200 overlap with current Russound dealers. Colorado vNet technology includes 29 different patents granted or applied for, according to Porritt. He says the company will be reviewing individual product SKUs from vNet but initially has no announcements of any discontinued lines.

This acquisition is good news for Colorado vNet customers, as CEO Bill Beierwaltes stated "Russound’s long history of innovation, commitment to customer service and overall leadership role in the multi-room distribution market leaves me confident that Colorado vNet is in good hands.”

To view the complete CePro story click here.