On 12/6/22, NRG announced they will acquire Vivint Smart Home Inc (VVNT) for $2.8bn cash / $5.4bn enterprise value with assumed debt. That deal announcement sent shares of VVNT soaring and NRG down big (-22%). NRG is paying 6.3x EBITDA with synergies baked in.

NRG is a merchant power plant with a retail energy business and VVNT is a home security business (similar to ADT). An interesting combination for sure…

Let’s take a look at the deal and see if there’s any value to be found…