NRG ENERGY TO ACQUIRE VIVINT FOR $2.8 BILLION
Leading smart home platform company Vivint Smart Home’s board of directors unanimously approved an agreement with NRG Energy Inc. for an acquisition worth $12 per share or $2.8 billion with an implied multiple of 6.3x run-rate Enterprise Value to Adjusted EBITDA. Vivint Smart Home’s mission is to help its nearly two million customers live intelligently by providing them with technology, products, and services to create a smarter, more efficient, and safer home. The acquisition will create the leading essential home services platform fueled by market-leading brands, unparalleled insights, proprietary technologies, and complementary sales channels. “The acquisition of Vivint is a transformational step in achieving our vision. Customers want simple, connected, and customized 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,” said Mauricio Gutierrez, President and CEO of NRG Energy. NRG will acquire 100% of the outstanding equity of Vivint for a total transaction value of $5.2 billion consisting of about $2.8 billion in cash and the assumption of $2.4 billion of debt (net of cash), which benefits from attractive terms and pricing. The transaction is expected to close in the first quarter of 2021 and is subject to customary closing conditions.