Monday, September 16, 2019

Vivint Smart Home Goes Public Via Reverse Merger

Provo, Utah-based Vivint Smart Home, which provides smart home technology, installation, and service, is going public via a reverse merger. The company--which is backed by The Blackstone Group--said that it is merging with Mosaic Acquisition Corp., which trades on the NYSE as MOSC, which will put the company on the public market. Vivint said Blackstone will invest $100M in cash as part of the deal, with affiliates of Fortress Investment Group investing an additional $125M in cash. Vivint said that existing investors in the company will roll over $2.3 billion in equity into the new entity. Although somewhat rare, reverse mergers are not unheard of for technology companies looking to enter the public markets without the high costs associated with initial public offerings (IPOs). Vivint said it will have an initial, enterprise value of $5.6 billion after the merger, where it will rename Mosaic into Vivint Smart Home, Inc.. The new company will have anticipated revenues of $1.3 billionfor its fiscal 2020, and an EBITDA of $530M, according to the company.