NRG buys Vivint Smart Home, nurtured by Blackstone; and Investcorp picks up a biz advisory firm

Investcorp acquires business advisor CrossCountry.

Good morning, dealmakers. MK Flynn here with today’s Wire.

Let’s kick things off with a big public sector deal with private equity roots. And we’ll share news of a PE purchase of a business services company.

Blackstone-backed. NRG Energy announced earlier this morning that it has agreed to acquire Vivint Smart Home for $2.8 billion in an all-cash transaction with an implied multiple of 6.3x run-rate enterprise value to adjusted EBITDA.

Houston-based NRG will acquire 100 percent of the outstanding equity of Vivint for a total transaction value of $5.2 billion, which consists of approximately $2.8 billion in cash and the assumption of $2.4 billion of debt (net of cash). The price tag represents a premium of approximately 33 percent to Vivint’s closing share price yesterday.

“Last year at our Investor Day, we presented our strategic roadmap to becoming the leading provider of essential services for homes and businesses, informed by consumer trends and underpinned by disciplined execution,” said Mauricio Gutierrez, president and CEO of NRG, in a statement. “The acquisition of Vivint is a transformational step in achieving our vision. Customers want simple, connected, and customized experiences that provide peace of mind. Vivint’s smart home technology strengthens our retail platform, improves our customer experience, and increases customer lifetime value.”

Vivint provides technology aimed at creating smarter, more efficient and safer residences.
Blackstone bought the Provo, Utah company in 2012 for roughly $2 billion and sold it to Mosaic Acquisition Group in 2019, with Blackstone retaining its investment in the company and making an additional investment. Vivint went public in January 2020 with a $4.2 billion enterprise value through one of the largest SPAC transactions in the US.

Business services. Also announced this morning: Investcorp is acquiring a majority stake in CrossCountry Consulting, a business advisory firm. In addition, Public Sector Pension Investment Board invested, and RLH Equity Partners will continue as an investor. CrossCountry founders Dave Kay and Erik Linn continue to be significant shareholders.

Founded in 2011, CrossCountry provides accounting, finance, risk, operations, cyber, and technology-enabled services for the office of the CFO in public and private organizations.

“There are several macro themes driving continued opportunity in accounting advisory, including the rise of outsourcing and the evolving role of the finance function to involve technology as businesses digitize their operations,” said Dave Tayeh, head of private equity, North America, at Investcorp, in a statement. “We believe that our long history of working with professional services companies, and the potential synergies across our current portfolio in this space, will help CrossCountry achieve its next phase of growth.”

Investcorp’s portfolio of professional and tech-enabled services includes AlixPartners, ICR, PRO Unlimited (now Magnit), Resultant and United Talent Agency.

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Today, the PE Hub Europe team, led by editor Craig McGlashan and including reporter Nina Lindholm, covered KKR’s agreement to acquire Clinisupplies, a Watford, UK-headquartered continence care product provider. The seller is Healthium MedTech Private, an Indian medical devices and consumable products manufacturer, which in turn has private equity backing from Apax Partners.

See PE Hub Europe for more.

On that note, I’ll sign off. Buyouts’ Chris Witkowsky will be back with tomorrow’s Wire and then PE Hub’s Aaron Weitzman will write Thursday’s and Friday’s newsletters. I’ll be back on Monday.

Happy dealmaking until then,

MK