Blackstone Nears Vivint Deal

(Reuters) – Blackstone Group LP is nearing an agreement to buy home security provider Vivint, according to three people familiar with the matter, in a deal expected to value the company at as much as $2 billion.

An announcement could come as early as Wednesday, according to a separate source familiar with the matter.

Reuters reported on September 5 that Vivint, which provides home technology and automation services, is exploring a sale and has drawn interest from three private equity firms: Blackstone, Ares Management LLC and GTCR LLC.

Blackstone has prevailed over the other buyout firms in the auction, people familiar with the matter said on Tuesday. They asked not to be named because the matter is not public.

Representatives for Vivint declined to comment. Blackstone did not respond to requests for comment.

Provo, Utah-based Vivint has about $260 million in earnings before interest, tax, depreciation and amortization (EBITDA) and could be valued at between $1.5 billion and $2 billion in a sale, sources told Reuters previously.

Formerly known as APX Alarm Security Solutions, Vivint is one of the largest providers of home automation and security services in North America, according to its website.

Vivint was founded by Todd Pedersen in 1999 and has continued to grow through investments from financial partners that have backed acquisitions over the past 13 years. A buyout by Blackstone would allow the company to expand further.

Its technology platform serves some 600,000 customers throughout the United States and Canada, connecting home smart systems, including alarms, air conditioning and energy management. It also provides severe weather alerts to customers at risk of tornadoes.

Management owns half of the company, while the other half is owned by Goldman Sachs Group Inc, as well as investment firms Jupiter Partners LLC and Peterson Partners.

(Reporting by Soyoung Kim and Greg Roumeliotis in New York; Editing by Gary Hill and Andre Grenon)

Image Credit: Vivint