Blackstone Agrees to Buy Vivint for About $2 Billion

Blackstone Group LP (BX), the world’s biggest private-equity firm, agreed to buy Vivint Inc. for about $2 billion to gain home-security, energy-management and solar- power customers in more than 670,000 homes in North America.

Blackstone is buying a majority stake in the Provo, Utah- based home-security and solar-leasing company from initial investors Goldman Sachs Group Inc. (GS), Jupiter Partners LLC and Peterson Partners LP in a deal that should be completed by year- end, founder and Chief Executive Officer Todd Pedersen said in an interview today. He plans to keep his minority equity stake.

“We were a small company when they first invested in us in 2006,” Pedersen said. “They’ve done very well since then and with Blackstone we’ll have the strong backing in the capital markets that will help us scale up.”

Vivint started as a home-security and management business in 1999 and last year expanded into offering solar-power leases. These home-management services, excluding solar, reached more than $30 million in recurring monthly revenue this year and should climb to almost $35 million in the next three months, Pedersen said.

Blackstone this year began seeking new revenue in residential real estate, buying foreclosed single-family homes in bulk and converting them to rental units. The New York-based firm is the largest U.S. owner of hotel properties,

“With Blackstone there are some good synergies but that’s more of an ancillary benefit,” Pedersen said.

Blackstone rose 1.9 percent to $15.23 at the close in New York.

To contact the reporter on this story: Christopher Martin in New York at cmartin11@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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