Control4 acquires Pakedge

Control4 touch screen

Control4 Corporation has expanded its networking portfolio with the acquisition of Pakedge Device & Software.

Control4 will now oversee Pakedge’s range of networking, power management and cloud-based remoted management products, and sales channel of over 1,100 independent dealers. The estimated $32.7 million deal (€29.2.m) was finalised on January 29, 2016, with Control4 expecting the move to boost revenue growth on behalf of the increased connectivity and device support its systems can offer.

Commenting on the acquisition, Martin Plaehn, Control4 chairman and CEO, said: “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.”

Packedge’s founders, senior management team and wider organisation are joining the Control4 team. Its 12-year portfolio includes products including network platform Pakedge Connect+, advanced software Pakedge Zones and cloud-based management tool BakPak. Its platform-architecture approach allows scalable and closely defined integration with third-party devices from different manufacturers, and fits with how Control4’s architecture integrates third-party products.

Victor Pak, Pakedge founder and CEO stated: “Pakedge began with the strategic vision that everything, starting with audio/video systems, will be connected over an IP-based platform.” He concluded: “Control4 shares our corporate philosophy and strategic vision. Joining together is a logical and exciting step to accelerate the realization of that vision for our customers.”

Control4 will support the Pakedge product line for all dealers, including non-certified Contol4 dealers – with cross-training and cross-certifying for both product ranges on offer for dealers who wish to represent both. Pakedge dealers will continue to order from its dealer portal, while Control4 dealers will now order the most popular Pakedge products via the Control4 dealer portal, which will soon expand to offer the full Pakedge line.

The combined Control4 and Pakedge dealer channel now includes more than 4,700 dealers.

Pakedge joins AV distributor Leaf and home automation software partner Extra Vegetables in the list of recent acquisitions made by Control4. 

InAVate talked to Jeff Dungan, senior vice president of supply chain and business development about the acquisition:

What type of products do you foresee developing with Pakedge to improve smart home and businesses?

As you can imagine, the possibilities for integrated solutions are very exciting, though at this time, we cannot comment on our joint R&D plans. 

CEO Martin Plaehn said acquisition in long term will simplify technology to “increase satisfaction for end users” – can you expand on this?

By embracing Pakedge networking capabilities as an expanded core competency within Control4, integrating them tightly with our entertainment and automation capabilities, and ensuring that a single cloud-based reporting and management solution spans both home-networking and connected-home devices, we will be able to deliver a much broader and more differentiated product line to our dealers, and more reliable integrated experiences our end customers.

Are dealers going to be allowed to stick to selling just the Pakedge product line?

Pakedge dealers who are currently not Control4 dealers can still continue to purchase Pakedge products, business as usual. 

How will this move affect the pricing of Pakedge products?

Pricing remains the same on all products and in the markets where available.

I know Pakedge is often credited with having great tech support; will this service remain the same?

As we transition from being two companies to being one, all Pakedge dealers will continue to reach out to Pakedge for support. Control4 dealers will direct technical questions to Control4 via their Knowledgebase, online chat and support representatives.