Vivint expands into smart lighting as NRG squares off against activist investor

HOUSTON – Smart home company Vivint has branched out into a new residential product category this month as its parent company faces opposition from investors.

Vivint Smart Lighting is a solution the company said is designed to make homes, "Safer, smarter, and more sustainable.” The company said the products allow users to place switches anywhere without requiring electrical work while expanding the smart capability of a home.  It marks one of the first major announcements for the company since their acquisition by NRG Energy on March 11.

The acquisition has proven to be a point of contention due to Vivint’s legal battles following participation in deceptive business practices and actions that landed the company in hot water with competitors and consumers alike. NRG has seen some blow back from the controversial deal first with the company stock taking a 15% dive following the announcement in December 2022, and now with activist investor Elliott Management turning its attentions toward them.

Elliott Management issued a letter and presentation to NRG Energy on May 15 announcing that they’d acquired over 13% economic interest in the company and in the letter accused the company of having, “…meaningfully underperformed due to a number of operational and strategic missteps.” One of those missteps being the acquisition of Vivint which they called, “…the single worst deal in the power and utilities sector in the past decade.”

In response to the letter NRG Energy issued the following response. “NRG is committed to creating shareholder value and appreciates Elliott’s interest. The Company welcomes all shareholders’ input and looks forward to an open dialogue with Elliott.”

Elliott will have that opportunity shortly as NRG has scheduled their 2023 investor day for June 22, 2023, at 9:00 EST. A live webcast of the event will be hosted on the company website at www.nrg.com, and will include presentation materials for participating entities.

Security Systems News previously covered both NRG’s acquisition announcement and Vivint’s most recent lawsuit.