Honeywell expects to spin off two existing divisions, Honeywell Home and ADI, a global distribution firm, to form Resideo. The new company will be a separate, publicly traded business entity. Resideo will market products with the Honeywell Home brand under an exclusive long-term license from Honeywell for home comfort and security hardware and software solutions.
Mike Nefkens, Honeywell Home’s current president and CEO, will head up Resideo.
“The home is the biggest investment most of us will ever make – the place where we create a lifetime of memories,” Nefkens said. “Because the home is a centerpiece of our lives, we expect it to be secure, comfortable and safe at all times. Resideo builds on Honeywell’s strength in providing the world’s best solutions to help people to live more productive, comfortable and safer lives.”
If you think the new company name is slightly familiar, there are two explanations for its origin.
According to Nefkens, “When we thought about a name for the new company, we knew it had to reflect our strong heritage, the promise of connected technology, and the deep devotion people have for protecting what they hold most dear. Resideo combines the words ‘residence’ – your home – and ‘presidio’ – your fortress.”
The company name’s roots are Latin. “Resideo” is a Latin verb that means “to sit back, remain sitting anywhere, to remain behind, to remain, rest, linger, tarry, abide, reside,” according to Lewis and Short’s A Latin Dictionary. The word’s international origins reflect the new company’s global aspirations.
Honeywell is banking on expected massive growth for smart home products and software solutions. The Resideo announcement included a reference to a Gartner study that forecast 12.8 billion installed smart home devices by 2020, led by markets in China, North America, and Western Europe.
“Through its iconic brand and unparalleled presence in the home and low-voltage product distribution markets, Resideo will have an enviable position from its first day,” said Honeywell chairman of the board, Roger Fradin.
“Resideo has several distinct advantages: a pipeline of innovative products and services, a sharp focus on its customers and global scale with a world-class brand,” Fradin continued.