Is Vivint finally selling? Rumors about the security and home automation company going on the auction block have created plenty of speculation this year.
After all this time, Reuters claimed in a report that final bids for the company are due later this month.
What we have heard from more than one source is that Vivint will have its pick from a handful of potential buyers. According to Reuters, Blackstone Group LP, Ares Management LLC, and GTCR LLC are all weighing bids for the company.
In 2011, Vivint reported having 573,000 subscribers and earning a gross revenue (top line) of $312,900,000. Recurring monthly revenue (RMR) is $27,800,000. Reuters reported the company currently serves more than 600,000 subscribers and brings in $260 million in earnings (bottom line) before interest, tax, depreciation and amortization (EBITDA) and could be valued at between $1.5 billion and $2 billion in a sale, according to its sources.
It certainly looks like the right time for Vivint to sell. According to its reporting for the SDM 100, the company grew its RMR by $7 million from 2010 to 2011. And such steady sources of revenue often earns high valuations. Vivint was SDM’s Dealer of the Year in 2011.