|Over a month ago|
Mosaic Acquisition, Vivint Smart Home provide update on transaction » 07:0101/1601/16/20
Mosaic Acquisition announced that, in connection with their pending transaction, Vivint has waived the closing condition relating to the number of redemptions of public shares of Mosaic Class A common stock. Under the terms of the merger agreement, it is a condition to Vivint's obligation to consummate the merger that the number of redemptions of Mosaic common stock under the redemption offer made by Mosaic in connection with the merger does not exceed 10.35M shares of Mosaic common stock. Based on the number of requests for redemptions of Mosaic common stock made by its stockholders, Mosaic anticipates that the number of redemptions will exceed 10.35M shares of Mosaic common stock. Nevertheless, Vivint has agreed, in accordance with the merger agreement, to waive the Maximum Redemption Condition and the merger is expected to be completed in January, subject to the satisfaction of other customary closing conditions.
Fly Insider: Liquidia, Steelcase among weeks notable insider trades » 13:0301/1301/13/20
LW, MOSC, GBDC, VTVT, SCS, MSM, CDNS, BHVN, JCTCF, LQDA
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Mosaic Acquisition price target raised to $12.50 from $12 at Imperial Capital » 05:0712/2612/26/19
Imperial Capital analyst…
Imperial Capital analyst Jeff Kessler raised his price target for Mosaic Acquisition to $12.50 from $12 saying the amended Vivint Smart Home merger agreement provides for a larger cash Infusion and more attractive valuation for Mosaic Shareholders. The analyst keeps an Outperform rating on the name.
Mosaic Acquisition rises 8.8% » 10:0012/1912/19/19
Mosaic Acquisition is up…
Mosaic Acquisition is up 8.8%, or 83c to $10.29.
ADT valuation favorable to combined Vivint-Mosaic, says Goldman Sachs » 06:3212/0412/04/19
The pending merger…
The pending merger between Vivint Smart Home and Mosaic Acquisition Corp. (MOSC) will create the first public pure-play comparable to ADT (ADT), Goldman Sachs analyst George Tong tells investors in a research note. A comparison of the two companies' fundamentals shows that ADT has greater scale, EBITDA margins and free cash flow generation, contends the analyst. However, Tong points out that ADT's 6.4 times estimated 2020 EBITDA valuation multiple is below the 10.5 times 2020 EBITDA multiple implied by Vivint's merger agreement with Mosaic. He also notes that ADT is increasing its mix of smart home monitoring installations and commercial revenue, both of which have higher revenue growth prospects. Tong reiterates a Buy rating on ADT with a $10 price target.
|Over a quarter ago|
Mosaic Acquisition initiated with an Outperform at Imperial Capital » 05:0910/1610/16/19
Imperial Capital analyst…
Imperial Capital analyst Jeff Kessler initiated coverage of Mosaic Acquisition with an Outperform rating and $12 price target. The analyst sees further potential EBITDA and valuation upside over time from "rapid" 15% residential home automation industry growth and and the positive effects of organic deleveraging. He has a positive view of the Vivint Smart Home transaction.
Vivint Smart Home, Mosaic Acquisition Corp. to merge » 06:4009/1609/16/19
MOSC, BX, SFTBY
Vivint Smart Home and…
Vivint Smart Home and Mosaic Acquisition Corp. announced they have entered into a definitive agreement to merge Vivint with a subsidiary of Mosaic. Following the merger, Mosaic will be renamed "Vivint Smart Home, Inc." With an agreed initial enterprise value of $5.6B, Vivint is anticipated to have revenues of $1.3B for fiscal year 2020E and Adjusted EBITDA of $530M, implying an Adjusted EBITDA multiple of approximately 10.5x. In connection with this transaction: Investment funds affiliated with The Blackstone Group (BX) and other existing investors of Vivint, including management, are retaining their full existing investment. Blackstone has agreed to invest an additional $100M in Vivint through an investment in the common stock of Mosaic immediately prior to the closing of the merger. Affiliates of Fortress Investment Group, a subsidiary of SoftBank Group (SFTBY), have agreed to invest an additional $125M in Vivint through an investment in the common stock of Mosaic immediately prior to the closing of the merger. This investment is in addition to the existing investments in Mosaic held by Fortress affiliates. The remaining outstanding shares of Vivint will be held by the current stockholders of Mosaic and certain other investors who are investing $150M in connection with the merger pursuant to forward purchase commitments obtained in connection with Mosaic's IPO, which includes $25M from Fortress. Additionally, David Maura is committing to purchase $5M under a 10b5-1 trading plan. Pro forma net leverage reduced from 5.5x to 4.3x LTM 6/30/2019 Covenant Adjusted EBITDA, with substantially all net proceeds expected to be used to repay debt. Blackstone and other existing investors of Vivint are expected to own approximately 78% of the outstanding shares of Vivint immediately following the merger. In total, there will be approximately $690M of net cash proceeds at closing, assuming no redemptions by Mosaic's public stockholders, including the $150M of forward purchase commitments obtained in connection with Mosaic's IPO. The net cash proceeds from these transactions, including Mosaic's cash on hand, are expected to be used for working capital and general corporate purposes, including to pay down a portion of existing Vivint debt. The transaction is expected to be completed during the fourth quarter or the first quarter of 2020, subject to approval by Mosaic and Vivint stockholders and other customary closing conditions. The boards of directors of both Vivint and Mosaic have unanimously approved the proposed transaction. Mosaic will apply to list the shares of its common stock being issued in connection with the merger on the New York Stock Exchange.