Vivint Smart Home offers integration of multiple devices into a single expandable platform by incorporating AI and machine learning into its operating system
Smart home platform company Vivint Smart Home to be acquired by NRG Energy. (Credit: Gerd Altmann from Pixabay)
US-based energy company NRG Energy has agreed to acquire smart home platform firm Vivint Smart Home in an all-cash transaction worth $2.8bn.
As per the terms of the deal, shareholders of the New York Stock Exchange (NYSE)-listed Vivint Smart Home will be offered $12 per share.
The consideration represents a premium of nearly 33% to Vivint Smart Home’s closing share price on 5 December 2022.
The total transaction value is $5.2bn, including the assumption of Vivint Smart Home’s debt of $2.4bn by NRG Energy.
Vivint Smart Home offers the integration of multiple devices into a single expandable platform by incorporating artificial intelligence (AI) and machine learning into its operating system.
A complete end-to-end smart home experience is said to be offered by the company’s vertically integrated business model that includes software, hardware, installation, sales, support, and professional monitoring.
Vivint Smart Home CEO David Bywater said: “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.”
Through the deal, NRG Energy expects to enhance and diversify its financial profile along with growing its total market opportunity.
The combined company is said to form an end-to-end ecosystem and serve an extensive network of nearly 7.4 million customers across North America.
NRG Energy president and CEO Mauricio Gutierrez 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.”
The deal, which is anticipated to be complete in Q1 2023, is subject to customary conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.