Vivint Could Fetch $2 Billion in Possible Sale
Utah-based Vivint, the giant door-to-door home security and home automation vendor, is for sale, Reuters reports
The Provo, Utah, company (originally called APX Security), is famous for its door-to-door sales methods, which have helped the business grow to about 600,000 accounts in just 12 years.
Each account pays from $50 per month for basic security to $69 for home automation that includes cameras, lights, thermostats, door locks and other gear.
The company almost single-handedly put the security/automation vendor 2Gig Technologies on the map, switching to that provider in 2010. Vivint now sells and installs some 200,000 2Gig panels every year.
Energy management has been a big seller since Vivint added it to its smart home repertoire last year. The company also has expanded into solar energy.
According to Reuters, three private equity firms—Group LP (BX.N), Ares Management LLC, and GTCR LLC—are weighing bids for the company, with the auction well into the second round.
Vivint is said to be working with Bank of America Merrill Lynch (BAC.N) and Citigroup (C.N) to find a buyer. The company has earnings (EBITDA) of about $260 million and could fetch up to $2 billion, Reuters reports.
CE Pro reported earlier this year that Vivint had total revenues of $301 million in 2011, up from $214 million in 2010. Last year, the company earned $27.7 million in recurring monthly revenue.
In March of this year, Vivint completed a $762 million senior bank debt financing.
The last big alarm-company sale was Protection One, which was purchased by the private-equity firm GTCR for $828 million in 2010.
Reuters says final bids for Vivint are due this month.
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Jason Knott is Chief Content Officer for Emerald Expositions Connected Brands. Jason has covered low-voltage electronics as an editor since 1990, serving as editor and publisher of Security Sales & Integration. He joined CE Pro in 2000 and serves as Editor-in-Chief of that brand. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He has been a member of the CEDIA Business Working Group since 2010. Jason graduated from the University of Southern California. Have a suggestion or a topic you want to read more about? Email Jason at email@example.com
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