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Russound Expands Distribution With IntelliNet Deal

1/09/2002 05:19:00 PM Eastern

NEWMARKET, N.H. - Custom-install supplier Russound purchased IntelliNet as part of its effort to enter the commercial market and further penetrate the residential systems-integration market, said Russound COO Oscar Ciornei.

Russound intends to maintain the IntelliNet brand name and sell IntelliNet products through an independent rep network to upscale installers and systems integrators. Russound products will continue to be sold through a mix of distributors and reps to a broader dealer base, Ciornei said.

Russound's dealer base includes A/V specialty chains that install distributed-A/V systems. IntelliNet's products, which integrate the control of A/V and other home subsystems, are targeted to installers of more sophisticated home-control systems.

The purchase will also help Russound overcome its image among upscale systems integrators as a "volume control and speaker selector company" even though Russound also markets sophisticated A/V distribution systems and architectural speakers, he said. Russound also gets about a half dozen patents in the purchase.

Ciornei called IntelliNet an engineering-driven company whose products have been undermarketed. Founded 11 years ago by venture capitalists, IntelliNet began marketing commercial building-automation products six years ago and began marketing its first residential system in early 2001.

The next step for IntelliNet is an expanded product selection to replace the brand's single residential system, said Ciornei. New systems will be launched at September's CEDIA convention.

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