Vivint Acquired By Texas Energy Company, NRG, Acquirer Stock Price Falls
Vivint is being acquired by a publicly traded energy company, NRG, which has resulted in Vivint's stock surging, and NRG's falling.
In this note, IPVM analyzes the deal, why it signals a bearish outlook by Vivint's leadership, and the risks NRG will face integrating Vivint into its existing business.
Deal *********
***** ***** ************** **** **** *********' ****** *********** approved ** ***-**** **** ** $*.** that ****** ****** ** $** *** share, * **% *******.
******'* ***** ****** ***** $* *** share ** **** **** *** **** broke ********** *** *** ****. *** ***** *** ***** ******, trading **** ***** $* *** ***** before *****'* **** *** *********:
*** $*.** *********** ** * *** bet *** ***, ***** *** * market ************** ** **** $**. ***'* stock ** *** ******* **** -**%, indicating ********* ** *** *** *** deal ** ********* ** ***. ******, NRG **** $*.** ** ****** ************** after *** **** *** *********.
*** ****** ** **** ** *** acquisition, **** **** ****** $*.** ** Vivint's ****, ******** *** ***** ********** value ** *** **** ** $*.**:
*** **** ******* ***% ** *** outstanding ****** ** ****** *** * total *********** ***** ** $*.* *******, which ******** ** *************$2.8 ******* ** **** *** *** ********** ** $*.* ******* ** **** (net of cash)
** ****,**** ****** ****'*, *** ********** ***** *** $**** higher ($*.**), * ******* ******* ** valuation ** **** ***** *****.
*** **** ** ******** ** ***** in ** ****, **** *** ********* "to ******** * *********** ******** ** Utah."
Modest **** ***** ******* ******* *******
***** ** *** *********** ***** ** just $*.**, **** ***** **** ** a ******* **** ********* ******'* ******* and ******* **** ******'* ********** *** not **** **** ********** ** ***** future. **** **** *** ***** ***, Vivint *** ******** ************ *** $**, ********** * **** ** **** 3.4%, * **** ****** *** *** PE ****.
Vivint ***** - ****** ********* **** *********
******'* ********** *** ***** ******* ********* have **** **** * ******* ***** in *** ******** ********. ****** ****** unwarranted *********** ** *** **** *** years, *.*.*** *** *** *** **** ****** against ****** *** ******* ************** ****. ******* ***** *** *** took ******, ******'* ******* *** ****-**** figurehead**** ******** ********* *** ***********.
*** *** ******* ******'* **** *** loose ********* ** *** ** ** seen, *** ** ** ****** ** have ** ****** ** ******'* ********. We ****** ***, ** * ******* regulated ****** ********, ** **** * much **** ************ ******** ** ******'* high **** ***** *******.
NRG ***** *** ******
*** ********** **** ********* ****** **** with ***** ********* ***** *** ***** a "******* ******** ** ********* ******** for ***** *** **********". *** ******* significant ***** ******* ************* **** *** combined ******* ** "*.** *********", **** NRG *** ******* ******* ***** *******:
******’* ***** **** ********** *********** *** retail ********, ******** *** ******** **********, and ********* ******** ******** *****.
***'***** ****** ******, ***** * ******* ** **********, but ***** ** * ***** ***** on ******* *********** *** ******* ***, including ********* ***** ****** ********** *** US.
******, ***** ********* ***************** **** **** ********, *** ******* that ** **** ******* ******* **** Vivint, ** ***'* ******** ******** *******, with **** **** ********* (**. *.* million ** ***** / ******* ***).
*******
******* ****** ******* ******* **** *** market, *** **** **** ** ******* upon ********* *** ****** **** *** into ***** ******** ********. *** $*.** acquisition ** * *** ***, *** NRG **** **** **** ** ******* Vivint's ************ ********* *** ******* ******** practices, ********* * ****** ********* ****** company *** *** ***** **.
* **** * ***** ****** *** works *** *** ** ***'* ***** companies ** ** *&* ********. ** has *********** ** ** ******** ***** that ***'* ******* ******** ** ** leave ******** ********* ** *****-***** ********** that *********** ******* *************.
**** ***** **** ** **** ***** does *** **** ** ********** ********** and ********* ************. *** **** ******* to ***** - * **** ** many *** *********.
* **** ** ******** **** *** will ****** ***** ******* ****** ** situ *** ********* ** **** *** now. * **** ****** ********'* ***** ***************** *** ****** *** ***.
******, ***********, **** ** ***'* ********** locally? ** ****** ******* **** *** or?
* ***** **** ****** **** *** as ******* ** ******** ********, *** that ********* ***** **** ***** *********** dealing **** *** ** ***'* ******-****** contractors ** ************ ** **** ******* is **** ********.
*** ****** ****** ** ***** ** a ***** ****** *** *********** ***** post-Enron. *** *** * ***** ** (what ****** ** *********) ******** **** often ***** **** **** *****.
...***'* ******* ******** ** ** ***** acquired ********* ** *****-***** ********** **** essentially ******* *************.
**** ***** **** ** **** ***** does *** **** ** ********** ********** and ********* ************.
**** ***** **** ***** ***** ***** able ** ********* ** *********** ************ can ** **** ** ****. ****** to *** *** ** ***** *** first. ** ** ***** *****, ** becomes ********* ******** ****** ** ** worth ******** **** *** *****, **** it ***** ** ****** ** ****** it.
** * ******* *******, ****** *** hide *** *** ***** *****. ** a ****** *******, *** **** ****** to “********** *****”… *** **** *** NRG.
** * ******* *******, ****** *** hide *** *** ***** *****
****** *** **** * ****** ******* for * *** ***** ***, ** why **** ******?
****** *** *** ****** ** ***** "private" ** ******** ** **** ** NRG.
****** *** * **** **** *** 20+ ***** *** **** ***** ** be *** *** ** *** ************* door ** **** ** ***** ****** approach *** ******.
************ ************ ******* ***** *** ***'* ********* are *********:
****,**** ** *** ********'* ****.
*** ******* ***** / **** ** selling **% ** ******** ***'* *.* million ***** ** *** ******: