Shares in Vivint Smart Home Inc shot up after it emerged the company will be bought by NRG Energy (NYSE:NRG) Inc for $2.8 billion in cash.
Under the terms of the deal, which has been unanimously approved by both company boards, NRG will pay $12 a share - a 35.5% premium to Vivint's closing share price on Monday.
Utah-headquartered Vivint makes various home security products, which help conrol other technologies sich as Amazon Echo. Its vertically-integrated business model includes hardware, software, sales, installation, support, and professional monitoring and a complete end-to-end smart home experience.
The combined group will be the leading essential home solutions provider and boast a network of around 7.4 million customers across North America.
The transaction is expected to close in the first quarter of 2023.
Vivint was bought by Blackstone for more than $2 billion a decade ago. It became publicly listed through a reverse merger with Mosaic Acquisition - a special-purpose acquisition company of SoftBank Corp.
Vivint shares in New York surged over 32% on the day to $11.90.
Contact the writer at giles@proactiveinvestors.com