Vivint Security is among the leading Home Security System companies in North America, and the company has been experiencing rapid growth in the recent past. It was established in 1999 in Utah, and it began its operations under the name of APX Alarm Security Solutions. Security monitoring services to homes and businesses were the initial services offered to clients by the company. Recently, Vivint has shifted its focus to services like automated home security and management. Presently, Vivint offers security, automated, and energy solutions and products for over 1. 5 million customers in North America.
However, it would be more appropriate to know who owns Vivint Security, a company that operates in the same industry. The company in question has experienced multiple ownership changes and shifts in its corporate governance in the past twenty years. It is important to learn the past operations and the present ownership of Vivint Security to determine the legitimacy of the company.
Initial Equity Investments and Ownership Vivint was founded by Todd Pedersen, Alex Dunn, and others in the year 1999. The initial investors and owners were instrumental in offering the capital required to establish the business. Soon, other venture capital firms such as Sigma Partners and Peterson Partners invested tens of millions of dollars to support the expansion of Vivint.
Mr. A In the year 2005 Blackstone group and the Goldman Sachs capital partners offered funding worth 200 million dollars to Vivint. This made it possible to carry out big expansions within the country and into Canada as well. It also granted these firms complete ownership of the home security provider going forward.
Acquisition by Blackstone Group In 2012, Blackstone Group made a leveraged buyout of Vivint and as a result, Vivint became a direct subsidiary of Blackstone Group completely. As a result of this deal, Blackstone had to buy all the other outstanding shares of Vivint. This transition brought the company from a point where it was owned mostly by financial sponsors to a stage where a single private equity owner fully owned the firm.
During its ownership, Blackstone assisted Vivint in its ability to keep expanding, both in terms of organic growth and through the completion of some selective acquisitions. In 2014, Vivint bought out Space Monkey, a technology firm that specializes in cloud storage, and integrated its services into Vivint’s smart home offering and connected devices portfolio. Vivint acquired Vermont-based smart thermostat business Icontrol Networks in 2016 as part of the smart home platform development.
In 2016, Vivint also entered into the public market for the first time as well as it entered into the public markets. While it remained as a wholly owned subsidiary of Blackstone, a company founded by Steven A. Cohen, Vivint offered common stocks in the New York Stock Exchange through an IPO. This led to the ability to raise about 600 million dollars in capital to reinvest back into the company’s growth. Nevertheless, Blackstone was able to retain the actual voting rights of ninety-eight percent through a system of a dual-class share. This IPO simply allowed Blackstone to sell just a fraction of its holding in the company while at the same time retaining the controlling bloc of votes.
Acquisition of the Company with the help of Mosaic Acquisition Corp Jump to September 2019 where it was revealed that Vivint would become part of a publicly-traded business through merging with Mosaic Acquisition Corp SPAC The deal worth 5. 6 billion dollars was completed in early 2020.
Under the merger agreement, Vivint Smart Home Inc. entered the New York Stock Exchange to start trading as a public limited company with the new Ticker VVNT. Thus, the situation was not very different from the 2016 IPO when Blackstone, being Vivint’s largest shareholder, maintained its control over the company through the Mosaic holding.
Other existing shareholders include Blackstone who is also a large company involved in equity investments. To date, Blackstone investment funds are still the biggest shareholders in Vivint as it controls about 97% of its shares. Specifically, three Blackstone funds own close to 180 million Vivint shares: Specifically, three Blackstone funds own close to 180 million Vivint shares:
Blackstone Capital Partners VI LP is an entity that was formed on 2020-01-06, it is located in Delaware, USA. Blackstone Family Investment Partnership VI L P Blackstone Fund VI SCSP L. P., Blackstone Family Investment Partnership VI-ESC L. P., Blackstone Fund VI-ESC L. P.
Other than Blackstone, other minor shareholders of Vivint include Mosaic Acquisition Corp, which is in a merger with Vivint, some of the funds affiliated to the Mosaic sponsor Fortress Investment Group, several clients of Elliot Management Corporation, Balyasny Asset Management, HG Vora Capital Management. Currently, all these firms hold less than 5% of Vivint’s stocks as a total of the three firms’ stakes is as follows:
In conclusion, therefore, Blackstone Group, an international investment company, stands out as the biggest shareholder of Vivint Smart Home, a company that specializes in home security and smart homes. Angra was sold to Blackstone in 2012 and the group has significantly boosted the company by contributing large amounts of capital and making strategic acquisitions. Today, Vivint is still a publicly traded company but Blackstone has major control and voting rights about 97% of the company’s stocks. Only a few institutional investors own the rest of the equity in the company.
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