Vivint announces sale to Texas-based energy company
On Tuesday, it was announced that Vivint Smart Homes is being sold to Houston-based NRG Energy Inc. for $2.8 billion. The Provo-based Vivint began as a home security company before segueing into smart home hardware and software.
“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,” Vivint Smart Home CEO David Bywater said in a statement.
NRG is purchasing Vivint for $12 per share — Vivint became a publicly traded company in 2020 — while assuming billions of dollars of the company’s debt. The agreement was unanimously approved by governing boards of both companies.
Vivint was founded in 1999 by Utah County residents Todd Pedersen and Keith Nellesen. The company maintains several locations in Utah and Utah County, namely the Innovation Center in Lehi and Business Resource Center in Orem, among other locations. The company has maintained a large public presence in Utah, purchasing the naming rights to the home arena for the NBA’s Utah Jazz in 2015.
Efforts by the Daily Herald to contact Vivint Smart Homes and the Provo City Economic Development Department were not successful.
The sale would be official in early 2023, pending approval by regulators from the federal government.
“The acquisition of Vivint is a transformational step in achieving our vision,” Mauricio Gutierrez, president and CEO of NRG, said in a statement. “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.”
According to the statement, NRG plans to maintain a presence in Utah. This also represents an effort by NRG to diversify its portfolio through “Vivint’s subscription-based model and long customer tenure (nine years),” the statement reads.
The news also led to a positive day for Vivint shareholders, leading to a 32.5% increase in stock value, according to Marketwatch.
“Our agreement with NRG is the culmination of our Board’s ongoing pursuit of maximizing value for Vivint stockholders and is a testament to the strength of the Vivint brand, 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 our Board and management team, I thank the hard-working Vivint employees for the significant role they have played in this important milestone,” Bywater said.