Home security firm Vivint mulls possible $2 billion sale: sources

NEW YORK Wed Sep 5, 2012 7:03pm EDT

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NEW YORK (Reuters) - Vivint, which provides home technology and automation services, is exploring a sale that could value it at as much as $2 billion, and has drawn interest from three private equity firms, according to people familiar with the matter.

Buyout firms Blackstone Group LP (BX.N), Ares Management LLC, and GTCR LLC are weighing bids for the company, with the auction well into the second round, the people said.

Vivint is working with Bank of America Merrill Lynch (BAC.N) and Citigroup (C.N) to find a buyer and final bids for the company are due later in September, according to one of the people.

Vivint is formerly known as APX Alarm Security Solutions.

Its technology platform serves some 600,000 customers throughout the United States and Canada, connecting home smart systems including alarms, air conditioning and energy management. It also provides severe weather alerts to customers at risk of tornadoes.

The Provo, Utah-based 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, the people said.

Representatives for the company, Blackstone, Ares, GTCR and Bank of America did not immediately respond to requests for comment. Citi declined to comment.

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 (GS.N) as well as investment firms Jupiter Partners LLC and Peterson Partners.

(Reporting by Soyoung Kim and Greg Roumeliotis in New York; Editing by Gary Hill and Carol Bishopric)

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