Terms of the transaction, which comes on the heels of a competitive sales process, call for Blackstone to purchase a majority interest in Vivint from the privately held company’s existing shareholders, a group that includes Goldman Sachs, Jupiter Partners, and Peterson Partners. As part of the deal, the private equity firm is also acquiring two affiliated entities: residential solar power provider Vivint Solar and 2GIG, which designs and manufactures residential security and automation equipment.
Vivint Inc. delivers home security, energy management, home automation, and solar power services to 675,000 customers using wireless technology platforms. The New York Times DealBook blog notes that the company has grown rapidly since being founded as APX Alarm in 1999, but has seen its success marred somewhat in recent years by a rash of customer complaints.
The acquisition will expand Blackstone’s presence in the so-called connected-life home automation marketplace, according to a Vivint press release announcing the deal. “We believe that the company is well positioned to capture significant share of these emerging markets,” Blackstone senior managing director Peter Wallace said in a statement included in the Vivint press release.
The Times reports that Blackstone will own more than 50 percent of Vivint once the deal closes—an event that is expected to come by the end of the year. A Vivint spokeswoman said the companies would not be disclosing the size of the private equity firm’s stake. Vivint’s current management team will stay on to run the company, according to the Vivint press release.
Vivint has turned to a Jones Day team led by New York–based M&A partners Robert Profusek and Andrew Levine for outside counsel on the matter. Pittsburgh shareholder Hugh Van der Veer and Philadelphia counsel Robert Jones of Buchanan Ingersoll & Rooney are also advising Vivint on the transaction, while Salt Lake City–based M&A shareholder Todd Leishman from Utah firm Durham Jones & Pinegar is advising Vivint Solar and 2GIG.
Nathan Wilcox serves as Vivint’s general counsel.
Blackstone, meanwhile, is relying on a Simpson Thacher & Bartlett team led by New York corporate partner Peter Martelli for outside counsel on the acquisition. Blackstone’s chief legal officer, John Finley, headed Simpson Thacher’s global M&A practice before joining the private equity firm.