Resideo Technologies Inc., a global player in residential and light-commercial sensing and control technologies, said today it has sold its grid services demand-response business to EnergyHub, a provider of grid-edge flexibility and distributed energy resource management solutions.
The move marks a decisive shift away from utility-side demand-management services — a space in which Resideo had built substantial scale — toward a leaner, product-centric model centered on core businesses. The company said the proceeds of the sale will be used for general corporate purposes in line with its previously stated capital-allocation priorities. The financial terms of the transaction were not disclosed.
Resideo’s grid services division historically helped dozens of utilities manage demand peaks by aggregating control of millions of connected devices — thermostats — across wholesale energy markets. Since 2012, the division managed or participated in 300 U.S. utility demand-management programs. Under the new ownership of EnergyHub — which supports more than 120 utilities representing over 55 million customers — that capacity will be folded into a broader grid-edge ecosystem that includes electric vehicles, batteries, and other distributed energy resources (DERs).
“By joining forces with EnergyHub, we will be able to offer our utility clients a broader ecosystem of DERs and leverage our winning platforms and our talented team to accelerate the transition to a carbon-free grid,” said Dave Oberholzer, general manager of Resideo Grid Services.
The divestiture comes as Resideo repositions itself around its bread-and-butter offerings: heating, ventilation and air-conditioning (HVAC) controls, home safety, and security — including smoke, fire, and carbon-monoxide detection — as well as smart-home integration products. Resideo’s portfolio spans well-known brands such as First Alert, Honeywell Home (used under license), BRK and Control4 — with devices installed in an estimated more than 150 million residential or commercial spaces worldwide.
In recent years, Resideo has also spun off or shuttered a number of non-core lines and businesses as it sought to stem margin pressure and streamline operations. The company’s decision reflects a broader strategic trend: focusing investment, research and development, and go-to-market efforts on professional-channel, integrator-friendly products — rather than utility-driven demand-response services that can carry regulatory, market and complexity overhead.
Still, the company said it would remain engaged in energy-load management: although it relinquished ownership of the aggregation platform, Resideo noted it can continue to “control and maintain energy loads in the home through integrations between its thermostats and other products and third-party demand-response platforms.”
For buyers and investors, the deal may offer clearer delineation of risk and focus for Resideo — narrowing the scope of its business while potentially freeing capital to invest in growth areas where the company already has strong brand recognition and distribution infrastructure.
For EnergyHub, the acquisition significantly expands its footprint in demand response and DER management, adding a roster of utility clients as well as a team familiar with scaling grid-edge services across multiple wholesale energy markets.
As Resideo closes the chapter on its direct utility-demand-management service, it signals a renewed emphasis on its core identity: a distributor and manufacturer of smart, integrator-friendly residential controls, safety, and security products — doubling down on simplicity, scale, and professional-channel execution.
Don’t miss any content from Distribution Strategy Group. Join our list.
