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Home Services M&A: NRG Acquires Vivint Smart Home for $2.8 Billion

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NRG Energy, Inc. has acquired Vivint Smart Home, Inc. for $12 per share or $2.8 billion in an all-cash transaction. The deal has an implied multiple of 6.3x run-rate Enterprise Value to Adjusted EBITDA. The annual run-rate Adjusted EBITDA, inclusive of $100 million of run-rate synergies, is $835 million, the companies said. 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). The transaction is expected to close in the first quarter of 2023.

NRG Acquires Vivint

This is technology M&A deal number 1,025 that ChannelE2E has covered so far in 2022. See more than 2,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.

NRG Energy, founded in 1989, is based in Houston, Texas. The company has 5,617 employees listed on LinkedIn. NRG’s areas of expertise include wholesale electricity generator, fossil fuel power, solar power, wind power, smart grid retail services, renewables, smart energy, sustainability, offsite solar, demand response, backup generation and community solar.

Vivint Smart Home, founded in 1999, is based in Provo, Utah. The company has 6,617 employees listed on LinkedIn. Vivint’s areas of expertise include smart home technology, home security, smart home products, smart home, IoT, and internet of things.

The acquisition furthers NRG’s consumer-focused growth strategy and expands the combined companies' market reach, the companies said.

NRG Acquires Vivint: Executive Insight

Mauricio Gutierrez, CEO, NRG Energy
Mauricio Gutierrez, CEO, NRG Energy

Mauricio Gutierrez, president and CEO of NRG, commented on the news:

“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.”