“They are right up our alley,” Control4 CEO Will West said of Magnolia. “They are one of the leading companies in proven custom installations at a process-driven retail level. They’re not just pushing boxes but working with clients to create customized offerings that fit their needs and lifestyles.”

Control4 already sells through 153 Tweeter retail stores and is in test trials with Circuit City. Retailers have been taking on more sophisticated home technology products over the last few months as a way to tap a higher-end clientele and drive more margin-rich integration services. That’s forcing independent digital integrators to improve their services and marketing.

During a recent interview Harvey Norman Boss Gerry Harvey said “We are looking at automation and where it fits. It is a very hard area”

West said Control4 has made clear to its integration partners that a move into higher-end retail is part of the company’s overall strategy. He added that there are plenty of opportunities for all types of integrators.

“If the average is about 3,000 custom home-integration companies in the U.S. working on 20 to 30 homes per year, that comes out to 60,000 to 90,000 homes each year. In a slow year, there are about 1.5 million homes built,” West said. “So only 4 percent to 6 percent of the new-home construction market is being served. There are plenty of opportunities for everyone.”