Vivint Smart Home announced the acquisition of Houston-based NRG Energy on Tuesday as part of a $2.8 billion deal. (Kristin Murphy, Deseret News)
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PROVO – NRG Energy Inc. approved. The Fortune 500 company has agreed to acquire Provo-based Vivint Smart Home for $2.8 billion, the two companies announced Tuesday.
According to the agreement, Houston-based NRG will pay $12 per share in cash, and assume an additional $2.4 billion in debt. The total value of $5.2 billion is a 33% premium to Vivint’s closing share price Monday, according to NRG. Vivint – acquired by private equity firm Blackstone in what was then The largest tech deal in Utah history In 2012 – Became a public joint stock company in 2020.
“We are pleased to announce a transaction that delivers immediate and attractive cash value to Vivint shareholders while presenting significant opportunities to drive our company’s continued success in the years to come,” David Bywater, CEO of Vivant Smart Home, said in a statement.
He continued, “Our agreement with NRG is a culmination of the Board’s ongoing pursuit of maximizing value for Vivint shareholders and is testament to the Vivint brand’s strength, 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 the Board of Directors and management team, I thank Vivint’s hardworking employees for the important role they have played in this milestone.”
Vivint was founded by Todd Pedersen and Keith Nellesen in 1999 as a home security company, and has since expanded its products to include smart home hardware and software. Vivint got the naming rights to the Utah Jazz home arena in Salt Lake City in 2015.
NRG’s president and CEO, Mauricio Gutierrez, said in a statement that NRG’s acquisition of Vivint and its approximately 2 million customers is part of the company’s plan to expand its offering of “essential services to homes and businesses.”
“The acquisition of Vivint is a transformative step in achieving our vision,” he said. “Customers want simple, connected, and personalized 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 combined company will serve approximately 7.4 million customers in North America, according to an NRG statement.
NRG is involved in power generation with a portfolio that includes natural gas, coal, oil, nuclear power, wind power and distributed solar power generation. The company has 6 million retail customers in 10 states and the District of Columbia, as well as eight Canadian provinces.
The acquisition is expected to close in the first quarter of 2023, pending the usual approval from the Federal Trade Commission and the US Department of Justice’s antitrust division.
NRG plans to maintain a “significant presence in Utah” following the transaction, according to the release.