Resideo pays Honeywell $1.59 billion to end indemnification agreement

Resideo Technologies Inc. (NYSE: REZI) completed a transaction with Honeywell International Inc. (NASDAQ: HON) to terminate their indemnification and reimbursement agreement established during Resideo's 2018 spin-off from Honeywell.

The company made a one-time cash payment of $1.59 billion to Honeywell, eliminating Resideo's obligation to make annual payments of up to $140 million through 2043. The transaction also removes all affirmative and negative covenants contained in the indemnification agreement.

Resideo's other agreements with Honeywell remain unchanged, including its long-term license to use the Honeywell Home brand.

The indemnification agreement was originally established when Resideo was spun off from Honeywell in 2018. The termination of this agreement eliminates future monetary obligations that would have extended through the end of 2043.

Resideo operates as a manufacturer, developer, and distributor of technology-driven sensing and controls products for residential and commercial markets. The company focuses on home heating, ventilation, air conditioning controls, smoke and carbon monoxide detection, and security products.

Willkie Farr & Gallagher LLP served as legal counsel to Resideo for the transaction, while Collected Strategies provided strategic communications advisory services.

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