Reply To: NRG Energy to Buy Vivint Smart Home in $5.8 Billion Deal

#48979
Truman
Participant

A steep 34% premium for VVNT based on yesterday’s closing price.

There may be some sticker shock over that $5.2 bln price tag (inclusive of $2.4 bln in debt) from NRG’s investors, explaining why the stock is getting hit hard on the acquisition news.

At about 3x estimated FY23 sales, the buyout price doesn’t seem too egregious at first blush. However, when considering that VVNT isn’t profitable, posting a net loss of nearly $(72) mln for the nine months ended September 30, 2022, the offer price begins to look much more generous.