Vivint Acquisition May Fail, Buyer Re-Evaluating [Deal Done]
Published Feb 22, 2023 17:55 PM
The ~$190 million judgment against Vivint in the CPI case may not be the worst part of the loss. Now, NRG, who agreed to buy Vivint, just months ago, is re-evaluating the deal.
In this note, we look at the deepening challenges for Vivint, the problems for NRG in doing this deal, the issues in breaking the deal, and the future for Vivint.
UPDATE: On March 10th, NRG completed the deal for Vivint.
**********
*** ********* *********** ******** **** **************** *** ******* *** ***** ** acquire ******, ** **** ** ******, at **** ****, * "********** *********." The ********** *** ** *********** **** NRG ******** **** **** * ******* dollars ** ****** ************** **** *** $2.8 ******* ****. *** ***** ***** shows *** ***** **** ** ******** and **** ****** ******* *****.
** ********, ******'* ********* ******* **** the ***** ***** ****** ******** **** the **** * ******, *** ***** staying **** ***** *** ************ ***** this **** (***** ***** ** *** tail ***** ***) **** *** ***** dropping *%+:
**-**********
*** **** ****************, ***** *** *** ********, ** is **-********** *** ******** *** **** the **** *** *** *** ******.
"** *** ***** ** *** ****’* decision ** *** ********’* ******* ******* Vivint ***** ****," * *** ********* said ** ** *****. "** ***continuing ** ******** *** ******** *** *** *******. As we shared during our recent earnings announcement, NRG’s acquisition ** ****** ** ******* *** *** *** *** ******." [emphasis added]
**** ** ***** *** **** ** events ******* ********* *** *** ****** the ****** / *** ******* *** issued,*** **** ********* ******* "****** *********** [**] ** ***** to ***** ** *** ***** ******* of ****".
Reduced *****
*** ****** **** ************ ******** ** that **** ***** ****** ** *** attempting ** ********* * ******* *****.
Terminating *** ****?
** ** ******** *** *** **** to ** ********** *** ** ****** Vivint ***** ** ****** ******* ** such * ****. ******* *.* ** t** *** *** **** ** ************** **** *******.
(*) **** ******* ***** ************* ***** to ********* *** ****. *******, ***** how **** ******'* ***** ***** **** up *** *** ******** ******** ******* Vivint, ****** ***** **** ****** ********** to ********* *** **** ** *** stock ***** ***** ****** ******.
(*) *** ********** ***** ***** *** deal *** ** ** *** *** any ********** **** ** ****-***** ** similar ****** ***** ***** ***** **** Vivint *** *** *** ************ ***** or ******** ** ******** *******.
(*) *** **** ** *** ****** by **** *, ****. **** ** potentially * ****. ***** *** *** said **** **** ***** ** ***** it ** *** *** ** *****, NRG *** *** **** ******** ** a ********* ** ******* ******* *** diligence ** *** **** **** ***** extending *** **** **** **** ***.
(*) "********* **** ***** *** **** been ******** ** *** [***] ************ Meeting" ** ** *** **** *** feasible **** ** *********** ** ********, NRG ****** *** ***** ***** *** unanimously ******** **** ****.
(*) "****** ** *** **************, ********, covenant ** ********* ** *** **** of *** ******* [******] ********* ** this *********". ** ** ******** **** NRG **** ******* **** ***** ********** issues ********* ** *** *** **** represent ******** ******** ** **** ****** represented ** ***.
** *** *** ****, ******'* ********* and ******* ********** **** **** **** public ********* ** ** *** ** hard *** *** ** ***** ** was *** ***** ** ***** ******. On *** *****, ****** ********** ********* downplay *** ******* ***** ******, *.*.,****** *** ******** ********* ***** ********* Sales *********, "***** ******* *** * Few *** ******".
** **** ***, ** ** ******** that ****** *** ***** ** * lower ***** ** ********** ******* *** deal *** **** *** ****** ** fairly ***** ************.
Surprise ****** ** *******
*** *** ******* *** ********* **** negative ********* ** ****** **** ****, in ****, ****** *** ** *** *** *** $20 ********** **** ** *** ************ ****, at *** ****, *** * "******* of ********* *****". *** **** ** that *** *** ****** ****** ****** (9 ***** *******) *** **** *** difference, ******* *** **** **** ** FTC ************* ********* *** ******* *********** than ** ********** **** ********.
******, * ***** **** ** *** industry *** ****** ********* **** **** brushed *** ******'* ********* *** ******* actions ***** *** ******* ******** ********* impact. *** ******** ** ****** ** pay *** ****** $*** ******* *** the **** **** ***** *********** *** sue (* ******* **** **** *** is *******) *** ****** ****. *******, Vivint *** *** **** ** **** appeal *** ******** ** ***** **** legal *******, ** ** ** ***** possible **** ****** ***** ****.
*** ** ** **** **** ********* position. ****** ** *** *** *** of *** **** ********, ** ***** having ** ****** ********* ******* *** Vivint's ********** ********** ***, ***** ***, will ****** ********* **** ** ******* eliminate ***** ********* ** **** **** more ****** *********** *** ******* ***** damage ***** **** ** * ******* regulated ******.
Comments (2)
Scott Zuniga
Feb 24, 2023
Carl Stoffers
Mar 01, 2023****** ***********,****** **** **** **** *% ** NRG ****:
****** ***** ***** (****:****)**** *.*%***** *** ****** (****:***) ******* * ***** ******** ** fund *** *********** ** *** ***** home ******** *******.
*** **** ** ******* ** *** proceeds **** ** ******** ** $**** aggregate********* ****** ** ****** ******* ***** lien ***** *** **** ** ********* fund *** ******** ** ****** ***** Homes (****), ********* ** **********.
*** *** ******** ***** ***** ****** Home (****) ****** **** *.*% **** ******* on **** ******** **** *** *** (***)*** *** ** *** *** ***** of *** *********** ** **** ********* * $*** ******* ********* ******* the ******* ** * *******.
* ***** ******** **** ***** **** month **** ****** ***** (****)**** **** $*** ******* ** *********** * ******* ***** ** *** Security ******* ** **** ******* ** alleged ********** ********* ** ******* ****** sales *********.
*** ***** ********* ******* ****** ***** (****) ***** ***** *** ****** (***) ****** ** ******* ****** ***** or$**/*****,** $*.* ******* ** **** *** debt, ** ********.
*** ****** (***) **** ** * ********* ** Seeking ***** **** ******* **** **'* "evaluating *** ********" *** *** *******. Vivint ***** (****) **** ** ******** *** ******* was *** "******* ** ********* *********" and ***** ** **** ** ******.
"***** *** ********* ** *** ****, we ***** ******* *** ****** ********* could ***** * ******** ** *********** term," **** ******* ****** ********-***** ***** in * **** **** *******. "***** the **** **** ******* ************ (********* previously ******* ** *** ** ********) watch **** ********* ** *** **** ahead *** *** ******."