Vivint Smart Home announced Tuesday that it will be acquired by Houston-based NRG Energy in a $2.8 billion deal. (Kristin Murphy, Deseret News)
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PROVO – Fortune 500 company NRG Energy Inc. has agreed to acquire Provo-based Vivint Smart Home Inc. for $2.8 billion, the companies announced Tuesday.
Under the terms of 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 share price on Monday, according to NRG. Vivint — which was acquired by private equity firm Blackstone in 2012 in what was then the largest tech deal in Utah history — became a public company in 2020.
“We are pleased to announce a transaction that offers immediate and compelling cash value to Vivint shareholders while providing significant opportunities to drive the continued success of our company for years to come,” said David Bywater, CEO of Vivant Smart Home, in a statement.
“Our agreement with NRG is the culmination of our Board’s continued drive to maximize value for Vivint shareholders and is a testament to the strength of the Vivint brand, capabilities and proven industry leadership,” he continued. “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 would like to thank the hard-working Vivint employees for the significant role they played in this important milestone. “
Founded in 1999 by Todd Pedersen and Keith Nellesen as a home security company, Vivint has since expanded its products to include smart home hardware and software. Vivint acquired the naming rights to the Utah Jazz’s home arena in Salt Lake City in 2015.
NRG’s acquisition of Vivint and its nearly 2 million customers is part of the company’s plan to expand its offering of “essential services for homes and businesses,” NRG President and CEO Mauricio Gutierrez said in a statement.
“The acquisition of Vivint is a transformative step towards realizing our vision,” he said. “Customers want simple, connected and tailored experiences that keep them safe. Vivint 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 NRG.
NRG is involved in power generation with a portfolio that includes natural gas, coal, oil, nuclear, wind and distributed solar. The company has 6 million retail customers in 10 states and the District of Columbia and eight Canadian provinces.
The acquisition is expected to close in the first quarter of 2023, subject to customary approvals from the Federal Trade Commission and the Antitrust Division of the U.S. Department of Justice.
NRG plans to maintain a “significant presence in Utah” after the transaction, according to the statement.
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