Blackstone’s $2 Billion Acquisition

In a statement released this morning, investment firm Blackstone Group (NYSE:BX) announced it will purchase one of the largest providers of home security services in North America, Vivint, for $2 billion.

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A fund managed by the New-York based investment firm will acquire Vivint from its shareholders, Goldman Sachs (NYSE:GS), Peterson Partners and Jupiter Partners, on behalf of its equity investors. After the deal closes, Blackstone will own more than 50 percent of the company.

The buyout firm was the winner of an auction held by Vivint’s bankers at Bank of America’s (NYSE:BAC) Merrill Lynch and Citigroup (NYSE:C).

“Vivint is the premier provider of home technology solutions – improving customers’ lives with world-class home security, energy management, home automation, and solar energy,” said senior managing director at Blackstone, Peter Wallace, in a statement. “We believe that the company is well positioned to capture significant share of these emerging markets.”

Blackstone will also buy Vivint Solar and 2GIG Technologies; Vivint Solar provides solar power across North America and 2GIG develops security and automation equipment for residential and small commercial customers.

The deal, which is expected to close by the end of the year, will expand Blackstone’s technology based holdings and will help Vivint continue its growth as a major provider of automated home services. Founded in 1999, Utah-based Vivent claimed it trails only ADT in North America.

Currently, the company said it supports more than 675,000 customers in the United States and Canada. Customers are charged subscriber fees, which were attractive to Blackstone because they can go toward servicing the debt taken on in the acquisition.

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