Resideo Announces Completion of Transaction with Honeywell To Accelerate Payment of All Potential Monetary Obligations Under Indemnification and Reimbursement Agreement

Q: What is the value of Resideo's (NYSE: REZI) payment to Honeywell in the 2025 transaction?

Resideo made a one-time cash payment of $1.59 billion to Honeywell to eliminate future monetary obligations under the Indemnification Agreement.

Q: How much will Resideo (REZI) save annually from terminating the Honeywell agreement?

The transaction eliminates Resideo's obligation to make annual payments of up to $140 million through year-end 2043 .

Q: Will Resideo (REZI) continue to use the Honeywell Home brand after the 2025 transaction?

Yes, Resideo's long-term license to use the Honeywell Home brand will remain in effect , as this agreement is separate from the terminated Indemnification Agreement.

Q: What agreements between Resideo and Honeywell were affected by the 2025 transaction?

The transaction terminated the Indemnification and Reimbursement Agreement and its associated covenants, while other agreements, including the Honeywell Home brand license, remain in effect.

Rhea-AI Impact

(Moderate)

Rhea-AI Sentiment

(Neutral)

Rhea-AI Summary

Resideo Technologies (NYSE: REZI) has finalized a significant transaction with Honeywell International (NASDAQ: HON) to eliminate all future monetary obligations under their Indemnification and Reimbursement Agreement from 2018. The deal involves a one-time cash payment of $1.59 billion to Honeywell, terminating Resideo's obligation to make annual payments of up to $140 million through 2043.

The transaction eliminates all affirmative and negative covenants under the Indemnification Agreement while maintaining other agreements, including Resideo's long-term license to use the Honeywell Home brand.

Positive

None.

Negative

Significant immediate cash outlay of $1.59 billion
Reduction in cash reserves and potential impact on financial flexibility

News Market Reaction – REZI

-2.80%

-2.80% Session close to close

In the Aug 14 session, REZI declined 2.80%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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08/13/2025 - 04:05 PM

SCOTTSDALE, Ariz., Aug. 13, 2025 /PRNewswire/ -- Resideo Technologies, Inc. (NYSE: REZI), a leading global manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for residential and commercial end-markets, today announced that it has completed the previously announced transaction with Honeywell International Inc. (NASDAQ: HON) to accelerate and eliminate all future monetary obligations under the Indemnification and Reimbursement Agreement (the "Indemnification Agreement"), which the companies entered into in 2018 in connection with Resideo's spin-off from Honeywell. Resideo's other agreements with Honeywell, including its long-term license to use the Honeywell Home brand, will remain in effect.

In connection with the completion of the transaction, Resideo made a one-time cash payment to Honeywell of $1.59 billion resulting in the termination of the Indemnification Agreement, including the elimination of Resideo's obligation to make annual payments to Honeywell of up to $140 million through year-end 2043 and the elimination of all of the affirmative and negative covenants contained in the Indemnification Agreement.

Advisors

Willkie Farr & Gallagher LLP served as legal counsel to Resideo and Collected Strategies served as strategic communications advisor in connection with the transaction.

About Resideo

Resideo is a leading manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for residential and commercial end-markets. We are a leader in the home heating, ventilation, and air conditioning controls markets, smoke and carbon monoxide detection home safety and fire suppression products markets, and security products markets. Our solutions and services can be found in over 150 million residential and commercial spaces globally, with tens of millions of new devices sold annually. For more information about Resideo and our trusted, well-established brands including First Alert, Honeywell Home, BRK, Control4, and others, visit www.resideo.com.

Contacts:

Investors:

Christopher T. Lee
Global Head of Strategic Finance
investorrelations@resideo.com

Media:

Garrett Terry
Corporate Communications Manager
garrett.terry@resideo.com

Dan Moore, Jim Golden, Tali Epstein
Collected Strategies
Resideo-CS@collectedstrategies.com

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SOURCE Resideo Technologies, Inc.

FAQ

What is the value of Resideo's (NYSE: REZI) payment to Honeywell in the 2025 transaction?

Resideo made a one-time cash payment of $1.59 billion to Honeywell to eliminate future monetary obligations under the Indemnification Agreement.

How much will Resideo (REZI) save annually from terminating the Honeywell agreement?

The transaction eliminates Resideo's obligation to make annual payments of up to $140 million through year-end 2043.

Will Resideo (REZI) continue to use the Honeywell Home brand after the 2025 transaction?

Yes, Resideo's long-term license to use the Honeywell Home brand will remain in effect, as this agreement is separate from the terminated Indemnification Agreement.

What agreements between Resideo and Honeywell were affected by the 2025 transaction?

The transaction terminated the Indemnification and Reimbursement Agreement and its associated covenants, while other agreements, including the Honeywell Home brand license, remain in effect.