Resideo Technologies plans to spin off ADI Global Distribution as an independent public company. The separation is expected to close in the second half of 2026. For AV integrators and end users who rely on ADI’s distribution network, the change is worth understanding now.
ADI Global Distribution (ADI) has long operated as the wholesale distribution arm of Resideo Technologies (NYSE: REZI). That structure is ending. Resideo announced in July 2025 its intention to spin off ADI as a separate, publicly traded company. The separation is on track to complete in the second half of 2026.
For AV and IT professionals, ADI is not a background player. The distributor carries more than 500,000 professionally installed products across security, fire, audio-visual, access control, smart living, and data communications. It also owns and distributes several brands that are fixtures on commercial AV job sites, including Control4, OvrC, Araknis Networks, and WattBox.
Why the split is happening
Resideo operates two distinct businesses. Its Products and Solutions segment manufactures residential controls and sensing devices under brands like Honeywell Home and First Alert. ADI, meanwhile, is a global wholesale distributor with a footprint and customer base that extend well beyond residential. The two businesses serve different markets and require different strategies.
Jay Geldmacher, Resideo’s president and CEO, described the separation as “the next, most natural step,” allowing each business to pursue its own path without compromise. Geldmacher plans to retire upon completion of the separation. Rob Aarnes, currently president of ADI, will lead the independent company.
In the 12 months ending March 29, 2025, ADI reported net revenue of $4.5 billion. Its adjusted EBITDA margin for that period was 7.5%. Those numbers reflect a business operating at meaningful scale as a standalone entity.
What this means for AV and IT end users
ADI serves the commercial AV market through its direct sales channels, branch network, and online platform. Its exclusive brands give it particular relevance for integrators speccing Control4 automation systems, OvrC remote management tools, or Araknis network infrastructure. Those relationships sit inside ADI, not Resideo.
The separation does not alter ADI’s product portfolio, supplier relationships, or exclusive brand agreements. ADI’s leadership team stays in place. The change is structural: ADI will answer to its own board and shareholders rather than operating as a segment inside a larger manufacturer.
That structural independence can cut both ways. On the positive side, ADI gains direct access to capital markets and can pursue acquisitions without competing for resources with a manufacturing parent. On the other side, it takes on the full obligations of a public company, including quarterly earnings pressure and investor scrutiny that were previously shared across Resideo.
What to watch
The spin-off still requires several steps. Resideo must file a Form 10 registration statement with the U.S. Securities and Exchange Commission (SEC), complete financing arrangements, and secure additional regulatory approvals. The separation does not require shareholder approval.
Resideo has not confirmed the exact completion date beyond “second half of 2026.” AV integrators and IT procurement teams with ADI distribution agreements or active Control4 or OvrC deployments should monitor the transition for any changes to account terms, support structures, or brand program details as the new company takes shape.
Resideo’s full announcement is available at investor.resideo.com.
Tim Albright is the founder of AVNation and is the driving force behind the AVNation network. He carries the InfoComm CTS, a B.S. from Greenville College and is pursuing an M.S. in Mass Communications from Southern Illinois University at Edwardsville. When not steering the AVNation ship, Tim has spent his career designing systems for churches both large and small, Fortune 500 companies, and education facilities.
- Tim Albright
- Tim Albright
- Tim Albright
- Tim Albright
