Vivint Valuation Falls $1.5 Billion

By: John Honovich, Published on Dec 19, 2019

Residential market struggles continue. Now, Vivint's valuation has fallen $1.5 billion in its impending merger.

Inside this note, we examine what happened, what is wrong and how this fits into broader troubles for the residential market.

*********** ****** ********* ********. Now, ******'* ********* *** fallen $*.* ******* ** its ********* ******.

****** **** ****, ** examine **** ********, **** is ***** *** *** this **** **** ******* troubles *** *** *********** market.

[***************]

Valuation ****

***********, ****** ********** ****** **** ** go ****** ** * $5.6 ******* *********:

**** ** ****** ******* enterprise ***** ** $*.* billion, ****** ** *********** to **** ******** ** $1.3 ******* *** ****** year ***** *** ******** EBITDA ** $*** *******, implying ** ******** ****** multiple ** ************* **.**.

***, **** *** **** slashed ** **** $*.* billion ** * ************* lower ********,**********:

*** ********* ******* *** initial ********** ***** ** Vivint ** ************* $*.* billion, ******** ** ********* 2020 ******** ****** ******** of ************* *.***

**** ** * **.*% drop ** ********* ** 3 ******.

Debt ***

********, **** ********* ***** to *** **** *************:

*** ***** *** ******** reduced **** *.** ** 3.9x *** */**/**** ******** Adjusted ******, **** ************* all *** ******** ******** to ** **** ** repay ****, ******** ** redemptions ** ******’* ****** stockholders.

**** ********* *** ****** a ******** ** **** debt ****** ******* ******* fear ***** *********** ** this *****. **********, ** September, *** **** *** to ****** ******** ** 4.3x *** *** ** will ** **** ******* to ***** *.

*******, *** ********* ******* plans ** **** ******** to ******* ******, ****** reflecting ******* ****** ******** about **** ******.

Residential *****

***** ** ********* ********** fears *** *** *********** market. *** *******, ********* banker**** **** ****** *** 'bad ******** ******', ****** *** '*** 20 *******', ********* **** ADT, ****** **** ******** and ******. *** ******* are ********** ******** **** stringent ** ******** ** lend, **** ********* *******'* **** ****** stress ** *** *********** market'.

Vivint **** ***

****** *** ******** **** the **** ********** ***** pushing ******* **** * new ********** ** '***** home' ********* *** ** has *****. ***** ***** customer ************ **** *** falling, ** ***** ***** more **** $*,*** ** acquire * ******** *** their ***** ***** **** been ******** ******** ***** the ********* ** **** from **.*% ** **.*%, per***** ** **** **********.

** *** **** ******, Vivint *** ****** *** success ** **** ** door ***** *** *** big ******** ** *** whether **** ***** *** its ********* **** '*****' home' *** ******* *** growing ********* ** *********** tech *********.

Comments (10)

Undisclosed Manufacturer #1

12/19/19 05:20pm

* ******** ** ***** from **** *** *** cost ***** **********, ******* to ****.

* **** ** ***** from ******* ** **** a *** “****** ********* alarm” ***** *** ****** points. (****, ***** *******) What ** ***** **** AI ** ******* *** strange ****** *** ******* you ** ***/****** ******* voice ***********? ***’* ******* an ************!

* ***’* ***** *** “Custom ****” **** **** to ***** ***** **********, but * ***’* ***** there’s **** ******* ** average *********** *** ** much *** **** ************ monitoring **** ******* ** a ********.

Undisclosed Manufacturer #2

In reply to Undisclosed Manufacturer #1 | 12/19/19 05:43pm

****** ***** ******* *** this. *** *** ***** in ******* *** ** goes *** ***** **** to ***** *** ** unusual *****.

Undisclosed End User #3

12/19/19 07:10pm

**** ****** *********** ** their **** *** ***** disciplines *** ****** **************

Undisclosed Integrator #4

12/20/19 08:28pm

* ***** ** *** of ** ******* ** Vivint, **'* **** ***** for **** ***** *** has * **** ***** team ***** ***. ** tells ** **'* **** to *** *** ** Vivint. ** *****'* ***** good *** *** *******. He **** ******* **** deal ****** ** ***.

Undisclosed Integrator #5

In reply to Undisclosed Integrator #4 | 12/26/19 07:58pm

**** **** ** **** come ****.

****** *** ***** **** a *** ** *** resi *********-- *** ********* based ** *** ******** to *** ***** **** to ******* ******* ******. When *** ***** **** evaporates *** ********* ******* up *** ***** ********.

****** *** *** *** less ******** ********* *** more ** ******** **** plays. *** **** ******** for **** ****** **** been **** ****** **** to ******** **** ** start ******* *** ***** rather **** **********.

Undisclosed #6

12/27/19 10:25pm

**** **** **** *** ESA **** ** *** this?

*** ***** **** **** preached *** **** *********-********* ferocity ********.

John Honovich

IPVM | 01/17/20 11:34pm

****** *** ************ ****** ** *** complete. *** ***** ****** trading ** *** **** next *******, **** ** interesting ** *** ** it ********** ********* ** decreases ** ********* ****.

John Honovich

IPVM | 01/23/20 03:07am

******: ****** *** *** started ******* *** **'* up ~**% **** ****:

****** ***** *** ****** capitalization ** **** "***.***", * ****** ****'* a *******. ****** **** any ******** **** ****?

J. M.

01/30/20 09:19am

**! **** ****** **** any **** ** ******'* share ***** ******** ** ~50% ** ********* *******? Will ********** *** *********** on **. **** ******!

John Honovich

IPVM | In reply to J. M. | 01/30/20 05:10pm

****** *** *******! * had *** ******* ****, below ** ***** ***** chart:

*** ***** * ***'* understand ** **** ******* these *** *****, ****** is ******* *** ****** cap ** **** **** $3 *******. ****** ***** be ***** **** *** when **** **** ****** the **** *** ********* at $* *******. ****** have *** ***** ** that ***********?

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Barnes Buchanan 2019: Despite 'Strange Narrative' Great Time To Be In Security on Feb 11, 2019
A "strange narrative" is being spun, said Michael Barnes [link no longer available] at the 2019 Barnes Buchanan Conference. However, despite that...
ADT Stock Drops After Announcing Loss And Amazon Delay on Mar 12, 2019
ADT's stock price dropped significantly after reporting heavy losses and delays in its Amazon partnership, as seen in the screenshot below: In...
Verkada Gets Half Billion Dollar Valuation on Apr 26, 2019
Last week, when we profiled Verkada (The Fastest Growing Video Surveillance Sales Organization Ever - Verkada), we predicted they would raise $40...
Knightscope Adds Just 2 Total Customers In Past Year, Yet Raising Money at $300 Million Valuation on May 02, 2019
This is no longer funny. While Knightscope has laughed it up promoting robot selfies, joking about a 'suicidal robot', the man who attacked a...
Avigilon President Henderson Is Out on Jul 09, 2019
Avigilon's President and COO James Henderson is out, abruptly, after a remarkable ascension over the past 8 years, Motorola VP Jack Molloy has...
Resideo Stock Plunges 37%, CFO Ousted on Oct 23, 2019
The horrible year for the ADI / Honeywell Home spinout, Resideo, just got worse, with their stock plunging another 37% today. Not even a year...
"Stress in the Residential Market" - Major Lender Exits on Nov 06, 2019
The residential security / 'alarm' market is getting worse, at least for traditional players. Now, one of the biggest lenders in the industry has...
ADT Stock Surges - "Leading The Commercial Space" on Nov 15, 2019
Don't call it comeback... but maybe call it a commercial provider. ADT, whose stock dropped by as much as 2/3rds since IPOing in 2018, has now...
Resideo CEO To Step Down on Dec 03, 2019
Resideo's CEO, Mike Nefkins, is stepping down, just 18 months after being brought in to lead the now plagued spin-out. Inside this note, we...
"Good Market, Bad Business Models" - Residential Security on Dec 11, 2019
Industry banker John Mack, at his company's annual event, took aim squarely at the problems in the residential security...

Most Recent Industry Reports

Video Surveillance 101 Course - Last Chance on Feb 20, 2020
This is the last chance to join IPVM's first Video Surveillance 101 course, designed to help those new to the industry to quickly understand the...
Vulnerability Directory For Access Credentials on Feb 20, 2020
Knowing which access credentials are insecure can be difficult to see, especially because most look and feel the same. Even insecure 125 kHz...
AI/Smart Camera Tutorial on Feb 20, 2020
Cameras with video analytics, sometimes called 'Smart' camera or 'AI' cameras, etc. are one of the most promising growth areas of video...
China Manufacturer Suffers Coronavirus Scare on Feb 20, 2020
Uniview suffered a significant health scare last week after one of its employees reported a fever and initially tested positive for coronavirus....
Cheap Camera Problems at Night on Feb 19, 2020
Cheap cameras generally have problems at night, despite the common perception that integrated IR makes cameras mostly the same, according to new...
Milestone Launches Multiple Cloud Solutions on Feb 18, 2020
Milestone is going to the cloud, becoming one of the last prominent VMSes to do so. Milestone is clearly late but how competitive do these new...
Video Surveillance Architecture 101 on Feb 18, 2020
Video surveillance can be designed and deployed in a number of ways. This 101 examines the most common options and architectures used in...
UK Stands Behind Hikvision But Controversy Continues on Feb 18, 2020
Hikvision is exhibiting at a UK government conference for law enforcement, provoking controversy from the press, politicians, and activists due to...
IronYun AI Analytics Tested on Feb 17, 2020
Taiwan startup IronYun has raised tens of millions for its "mission to be the leading Artificial Intelligence, big data video software as a service...
Access Control ADA and Disability Laws Tutorial on Feb 17, 2020
Safe access control is paramount, especially for those with disabilities. Most countries have codes to mandate safe building access for those...

What IPVM Is

The world's leading authority on video surveillance, with 200,000+ visits monthly.

  • Articles on cameras, video analytics, VMS, and trends
  • Tests showing actual performance and problems
  • Courses in surveillance, access control, etc
  • Camera Calculator for designing systems

Dedicated To Independence

We're dedicated to staying independent and objective. We're the only industry source to refuse any and all advertisements, sponsorship, and consulting from manufacturers. Why?