NRG Energy (NYSE:NRG), announced on Tuesday that it intends to acquire Vivint Smart Home (NYSE:VVNT) at a price of $12 per share. The transaction is valued at $5.2 billion including $2.8 billion in cash and $2.4 billion in debt (net of cash).
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This transaction represents 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 expected to be $835 million.
Shares of Vivint, a smart home platform soared by more than 30% in pre-market trading on Tuesday following the news of the acquisition.
NRG’s consideration indicates a premium of around 33% to Vivint’s closing share price on December 5, 2022. The acquisition is expected to close in the first quarter of next year.
NRG expects that this acquisition will create a “leading essential home services platform fueled by market-leading brands, unparalleled insights, proprietary technologies, and complementary sales channels.”
Analysts are cautiously optimistic about NRG stock with a Moderate Buy consensus rating based on two Buys and one Hold.
