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SCOTTSDALE, Ariz. - Resideo Technologies, Inc. (NYSE:REZI) announced Wednesday it has completed its previously announced transaction with Honeywell International Inc. (NASDAQ:HON) to terminate all future obligations under their Indemnification and Reimbursement Agreement. Honeywell, currently trading near Fair Value according to InvestingPro analysis, maintains a strong market position with a market capitalization of $139.5 billion and has demonstrated consistent dividend growth for 14 consecutive years.
The home technology manufacturer made a one-time cash payment of $1.59 billion to Honeywell, eliminating its requirement to make annual payments of up to $140 million through 2043. The transaction also removes all affirmative and negative covenants contained in the agreement, which was established when Resideo spun off from Honeywell in 2018.
Resideo’s other agreements with Honeywell, including its long-term license to use the Honeywell Home brand, will remain in effect.
The transaction allows Resideo to eliminate a significant long-term financial obligation that would have continued for nearly two more decades.
Resideo, which manufactures and distributes sensing and controls products for residential and commercial markets, maintains a presence in over 150 million residential and commercial spaces globally. The company’s portfolio includes brands such as First Alert, Honeywell Home, BRK, and Control4. InvestingPro analysis reveals that Honeywell continues to demonstrate strong market performance, with 10 analysts recently revising their earnings estimates upward. Get access to detailed financial metrics and comprehensive analysis of over 1,400 stocks with an InvestingPro subscription.
Willkie Farr & Gallagher LLP served as legal counsel to Resideo for the transaction, with Collected Strategies acting as strategic communications advisor, according to the company’s press release statement.
In other recent news, Honeywell International has increased its 2025 organic revenue guidance by 2 percentage points, driven by expected growth in its Building Automation segment. This adjustment reflects anticipated mid-to-high single-digit growth, improving from previous mid-single-digit forecasts. Jefferies has maintained its Hold rating on Honeywell with a price target of $240, expressing caution about the company’s short-cycle momentum heading into the latter half of 2025. Meanwhile, Resideo Technologies has entered a definitive agreement with Honeywell to eliminate all future payment obligations under their 2018 Indemnification and Reimbursement Agreement. Resideo will make a one-time cash payment of $1.59 billion to Honeywell in the third quarter of 2025, ending the annual payments that were set to continue through 2043. Additionally, Resideo plans to separate its ADI Global Distribution business through a tax-free spin-off, creating two independent public companies. This separation is expected to be finalized in the second half of 2026.
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