Thursday, 28 Nov 2024

Vivint to cut enterprise value in merger deal with SoftBank unit

(Reuters) – Vivint Smart Home Inc has agreed to reduce its initial enterprise value to about $4.1 billion, in a deal to merge the U.S. home automation company with a firm funded by Japan’s SoftBank Corp’s unit.

In September, Blackstone Group (BX.N) backed Vivint had agreed to merge with Mosaic Acquisition Corp (MOSC.N), formed by SoftBank (9434.T) unit Fortress Investment Group, to create a firm with an enterprise value of $5.6 billion.

Mosaic will take on the Vivint name after the deal closure.

In addition to the previously disclosed $125 million investment in Vivint, the amendment to agreement will also see Fortress Investment Group LLC investing up to $50 million in Vivint, the companies said in a joint statement on Wednesday.

Blackstone, along with other existing investors of Vivint will own about 55% percent of the company following the merger, the companies said.

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