Vivint Smart Home and Mosaic Acquisition Corp, a special purpose acquisition company, have entered into a definitive agreement to merge Vivint with a subsidiary of Mosaic to create Vivint Smart Home Inc.
With an agreed initial enterprise value of $US5.6 billion, Vivint is anticipated to have revenues of $1.3 billion for fiscal year 2020E and Adjusted EBITDA of $530 million, implying an Adjusted EBITDA multiple of approximately 10.5x, according to the details outlined in the agreement.
“We are excited to partner with Mosaic to unlock the next chapter of the Vivint growth story,” Todd Pedersen, founder and CEO of Vivint, said in the announcement. “We remain committed to our mission of redefining the home experience through intelligently designed, cloud-enabled solutions delivered to every home by people who care.
“Just as it was in 1999 when I founded this business, to today where we are a multi-billion-dollar enterprise, our customers remain our focus. As the smart home market rapidly expands globally, Vivint is in the early stage of a massive opportunity and is ready to create the future of how we live and interact with our homes.”
Vivint delivers integrated smart home products and cloud-enabled services to 1.5 million subscribers across 98 percent of the zip codes in the U.S., and in Canada, according to the company, and offers a comprehensive suite of smart home products along with professional installation, nationwide in-home service, and 24/7 professional monitoring and customer care.
Following the closing of the merger, Vivint will continue to be led by its experienced management team, including Pedersen, President Alex Dunn and CFO Mark Davies. All existing Vivint directors will serve on the board of directors of the combined company, joined by David Maura from Mosaic and, after the closing and subject to regulatory approval, by a director from the SoftBank Vision Fund.
The nature of the acquisition suggests an unfolding story, as well as underlining the growing value of the smart home market.
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