(RTTNews) - NRG Energy, Inc. (NRG) and Vivint Smart Home, Inc. (VVNT) announced Monday they have entered into a definitive agreement under which NRG will acquire Vivint for $12 per share or $2.8 billion in an all-cash transaction. The agreement has been unanimously approved by the boards of directors of both companies.
Vivint Smart Home is a leading smart home platform company that provides technology, products, and services to create a smarter, more efficient, and safer home.
The acquisition accelerates the realization of NRG's consumer-focused growth strategy and creates the leading essential home services platform fueled by market-leading brands, unparalleled insights, proprietary technologies, and complementary sales channels.
The transaction improves and diversifies NRG's financial profile while also expanding the total market opportunity available to NRG. The annual run-rate adjusted EBITDA, inclusive of $100 million of run-rate synergies, is $835 million.
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).
This consideration represents a premium of approximately 33% to Vivint's closing share price on December 5, 2022.
The transaction is expected to close in the first quarter of 2023 and is subject to customary closing conditions. Upon completion of the transaction, NRG intends to maintain a significant presence in Utah.
