Blackstone-backed Vivint Smart Home to merge with SoftBank unit

September 17, 2019 09:43
A Softbank unit will take on the Vivint name after the integration of the home automation firm. Photo: Bloomberg

Vivint Smart Home Inc, a home automation company backed by Blackstone Group, on Monday agreed to merge with a company funded by a unit of Japan’s SoftBank Corp, Reuters reports.

The merger will create a firm with an enterprise value of US$5.6 billion, according to the report.

Vivint makes a range of smart home security products that help in controlling other automation gadgets, such as Amazon Echo and Google Home, through a central touchscreen panel.

Mosaic Acquisition Corp, formed by SoftBank unit Fortress Investment Group for making acquisitions, will take on the Vivint name after the deal closure.

Blackstone, which bought Vivint in 2012 for more than US$2 billion, will retain its investment in the company and invest an additional US$100 million, the report said.

SoftBank will also invest US$125 million in the common stock of Mosaic before the close of the deal, which is expected by the first quarter of 2020.

Blackstone and other existing investors of Vivint will own about 78 percent of the combined entity.

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