Resideo completes transaction with Honeywell

Resideo Technologies (REZI) announced that it has completed the previously announced transaction with Honeywell International (HON) to accelerate and eliminate all future monetary obligations under the Indemnification and Reimbursement 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 $1.59B resulting in the termination of the Indemnification Agreement, including the elimination of Resideo’s obligation to make annual payments to Honeywell of up to $140M through year-end 2043 and the elimination of all of the affirmative and negative covenants contained in the Indemnification Agreement.