Dec 6, 2022 - Economy & Business

NRG Energy to buy Vivint Smart Home for $2.8 billion

Illustration of “Home Smart Home” on a computer screen.

Illustration: Shoshana Gordon/Axios

NRG Energy on Tuesday said it's agreed to buy Vivint Smart Home, a Provo, Utah-based home security and automation company, for $2.8 billion.

Why it matters: This is a big boomerang for the SPAC market, which on Monday was stung by a pair of large deal terminations (Circle and Footprint).

  • Vivint was a Blackstone-backed business taken public by a Fortress Investment Group SPAC in 2020, and its exit comes on the same morning as three new SPAC merger announcements at a combined pre-money equity value of $2.7 billion.

Details: NRG will pay $12 per share in cash, representing a 33.5% premium to yesterday's closing price for Vivint shares and a bump to the baseline $10 SPAC price. NRG also will assume $2.4 billion in debt.

The bottom line: The Vivint Smart Home acquisition fits within NRG's years-long effort to reduce its reliance on power generation for revenue, and to expand into the retail energy and consumer markets. But even as the company seeks to burnish its sustainability cred, it still owns sizable stakes in fossil fuel-fired generation, including coal.

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