PROVO, Utah — Vivint, a national provider of residential security, energy management and automation solutions, is exploring a sale that could value it at as much as $2 billion, according to Reuters.
The company has drawn interest from three private equity firms, according to people familiar with the matter, the news agency reports.
Buyout firms Blackstone Group LP, Ares Management LLC, and GTCR LLC, which owns Protection 1, are weighing bids for the company, with the auction well into the second round, the sources told Reuters.
Vivint is working with Bank of America Merrill Lynch and Citigroup to find a buyer and final bids for the company are due later in September, according to one of the sources.
Vivint serves roughly 600,000 customers throughout the United States and Canada, connecting smart home systems including alarms, air conditioning and energy management. It also provides severe weather alerts to customers at risk of tornadoes. Last year Vivint, formerly APX Alarm, received $75 million from U.S. Bancorp to start its solar business, which offers solar financing and installation services to the residential market.
The company has about $260 million in earnings before interest, tax, depreciation and amortization (EBITDA) and could be valued at between $1.5 billion and $2 billion in a sale, according to Reuters.
Vivint was founded by Todd Pedersen in 1999 and has continued to grow through investments from financial partners that have backed acquisitions over the past 13 years.
Management owns half of the company, while the other half is owned by Goldman Sachs Group as well as investment firms Jupiter Partners LLC and Peterson Partners.