NRG Energy, Inc., a Houston-based power company, said it will acquire Vivint Smart Home, Inc. for $2.8 billion in cash. The boards of directors of both companies have unanimously approved the deal.
Provo, Utah-based Vivint makes home security products that incorporate artificial intelligence and machine learning and help to operate other automation gadgets, such as Amazon Echo and Google Home. Vivint also provides installation, support, and monitoring services.
In acquiring Vivint, NRG (which is involved in energy generation and retail electricity) expands its home services offerings to include security and automation products. The transaction enhances its total market opportunity to 7.4 million customers across North America, the companies said in a statement. And, Vivint's predictable earnings, achieved through its subscription-based model and customer retention, diversify NRG’s financial profile.
“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,” Mauricio Gutierrez, NRG President and Chief Executive Officer, said in a statement.
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.
The deal is expected to close in the first quarter of 2023 and is subject to customary closing conditions.
