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NRG Energy acquires Vivint Smart Home
- December 13, 2022
- Steve Rogerson
Texas energy firm NRG Energy has acquired smart-home specialist Vivint for $5.2bn in a transaction unanimously approved by the boards of both companies.
Utah-based Vivint is a smart home platform company with nearly two million users of its technology, products and services that help create a smarter, more efficient and safer home.
Vivint delivers multiple devices united in a single expandable platform that incorporates artificial intelligence and machine learning in its operating system. The company’s vertically integrated business model includes hardware, software, sales, installation, support and professional monitoring.
The acquisition is part of of NRG’s consumer-focused growth strategy and creates an essential home services platform fuelled by some of the market-leading brands.
“Last year at our investor day, we presented our strategic roadmap to becoming the leading provider of essential services for homes and businesses, informed by consumer trends and underpinned by disciplined execution,” said Mauricio Gutierrez, CEO of NRG. “The acquisition of Vivint is a transformational step in achieving our vision. Customers want simple, connected and customised experiences that provide peace of mind. Vivint’s smart home technology strengthens our retail platform, improves our customer experience, and increases customer lifetime value. I am excited to welcome Vivint to the NRG family.”
David Bywater, CEO of Vivint Smart Home, added: “We are pleased to announce a transaction that delivers immediate and compelling cash value to Vivint’s stockholders while also presenting significant opportunities to drive our company’s continued success in the years to come. Our agreement with NRG is the culmination of our board’s ongoing pursuit of maximising value for Vivint stockholders and is a testament to the strength of the Vivint brand, capabilities, and proven industry leadership. We look forward to working with NRG to create exciting opportunities for Vivint as part of a larger platform. On behalf of our board and management team, I thank the hard-working Vivint employees for the significant role they have played in this important milestone.”
The combined company will have approximately 7.4 million customers across North America. NRG has a track record of integration and synergy realisation across a number of acquisitions, including Direct Energy, Stream and Xoom.
NRG will acquire 100% of the outstanding equity of Vivint for a total transaction value of $5.2bn, which consists of approximately $2.8bn in cash and the assumption of $2.4bn of debt. This represents a premium of approximately 33% of Vivint’s closing share price on December 5, 2022.
The transaction is expected to close in the first quarter of 2023 and is subject to customary closing conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Upon completion of the transaction, NRG intends to maintain a significant presence in Utah.