NRG Energy, Inc. (NYSE: NRG) and Vivint Smart Home, Inc. (NYSE: VVNT) announced a $2.8 billion acquisition in an all-cash transaction agreement under which NRG will acquire Vivint. This is $12 per share with an implied multiple of 6.3x run-rate Enterprise Value to Adjusted EBITDA.
Provo-based Vivint is a leading smart-home platform that was founded in 1999 by Keith Nellesen and Silicon Slopes "Hall of Famer" Todd Pedersen. At around 1.9 million customers served nationwide, Vivint is leading the charge in smart home tech.
The teams at both Vivint and NRG are optimistic and enthusiastic about the agreement, seeing an acceleration of growth in the sector. In this morning's press release, Mauricio Gutierrez, President and CEO of NRG said, “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.”
This announcement brings immediate cash value for Vivint stockholders while at the same time improving NRG's financial profile. After closing, NRG is committed to maintaining Vivint's strong presence in Utah.
Finincial terms are such that "NRG will acquire 100% of the outstanding equity of Vivint for a total transaction value of $5.2 billion, which consists of approximately $2.8 billion in cash and the assumption of $2.4 billion of debt (net of cash), which benefits from attractive terms and pricing. This consideration represents a premium of approximately 33% to Vivint’s closing share price on December 5, 2022." (press release)