Vivint's $5,000 to $2 billion journey from security to solar

Provo-based home security and automation company Vivint will be entering a deal with Blackstone Group LP, valuing the company at $2 billion.
But what led the company to its success?
The following is a timeline showing the company's milestones before the deal was announced on Tuesday.
To read more about the deal with Blackstone, click here.

1992: The Beginnings

Photo courtesy of Vivint

While in college, Todd Pedersen, chief executive of Vivint, along with APX co-founder Keith Nellesen, started a direct selling company for pest control called Creative Concepts.

1994: The offer

servicemaster.com

Two years later, they were offered $1.2 million by The ServiceMaster Co., but Pedersen turned it down.

“I was sick to my stomach two days afterwards,” Pedersen said. “I don’t know how I turned it down, but I did. But back then I thought we could become a $10 million company. Honestly, the $2 billion number probably started hitting my head two years ago. Now, our sights are much higher than that.”

1999: Venturing out

cepro.com

The company, then known as APX, was started in 1999. It began when Pedersen noticed an opportunity in the security solutions market.

1999-2005: 'Health growth'

Photo courtesy of Vivint

"Between 1999 and 2005, the company experienced healthy growth, marketing third-party security products and services," the company said in a statement.

July 2006: Enter investors

Mark Lennihan, Associated Press

In July 2006, the company signed a $75 million agreement with Goldman Sachs Group Inc.

The funding allowed the company to "research and pursue new market opportunities that would fuel the growth of the company for the foreseeable future," according to a statement from the company.

2006: Oh, Canada

Small via Flickr

The company also expanded north to Canada, sending sales reps to residents in Toronto, Ontario.

2005-2010: Rapid growth

Photo courtesy of Vivint

Between 2005 and 2010, the company's customer base grew 825 percent, according to the company's website.

2009: Funding amid difficulty

Richard Drew, Associated Press

APX was able to strike another deal with Goldman Sachs to the tune of $440 million in 2009. The company's customer base grew 34 percent.

Oct 2009: New products

vivint.com

APX Alarm expanded its product set with an LCD touchscreen called Go!Control. The panel allowed customers to control security system and thermostats remotely.

2009: New customers

vivint.com

The addition of the Go!Control panel added more than 15,000 customers in six months.

Nov 2009: Acquisition of Criticom

cmsn.com

The company acquired St. Paul, Minn.-based Criticom Monitoring Services, a subsidiary of Protection One. APX inherited 83 employees and allowed the company to expand its services nationwide.

Dec 2009: A new home

Photo courtesy of Vivint

APX opened its 125,000-square-foot corporate headquarters in Provo in Dec 2009. The facility wasn't running until April 2010.

Fall 2010: Rebranding

vivint.com

The company decided to rebrand in the Fall of 2010 in order to "better represent the potential and future direction of the company," according to the company's history.

Feb 2011: A new name

vivint.com

APX Alarm changed it's name to Vivint on Feb 1, 2011. The name is based on the words "vive," meaning "to live" and "intelligent," which represents the company's efforts to help customers live intelligently.

2011: Expanding automation

vivint.com

With a new name, Vivint was ready to launch its new line of products. The company released expanded capabilities in its home automation product.

These upgrades include the ability to control lighting and small appliances, automatic door locks and video surveillance.

2011: Revenue streams

Photo courtesy of Vivint

The company brought in $360 million in revenue in 2011, bringing in more than $27 million a month.

2011: Employment numbers

Photo courtesy of Vivint

Total 2011 employment:

1,151- Utah, Minnesota and Idaho

683- Field Service (US)

53- Field Service (Canada)

3,378- Summer Sales Reps

1,270- Summer Installers/Techs

Total: 6,535

2011: Outreach

vivint.com

The company completed a four-month-long program called the Vivint Gives Back Project in which the company donated $1.25 million to 84 charities in North America.

June 2011: Consumer Digest award

consumersdigest.com

Consumers Digest named Vivint Home Automation and Advanced Security a "Best Buy" in June of 2011.

The company reached $30 million in monthly revenue, which is an increase of 940 percent over five years.

Sept 2012: Utah Business Magazine

Photo courtesy of Vivint

The locally-based magazine named Vivint "one of the Top Five Fastest Growing Companies in utah."

Sept 2012: Blackstone acquisition

wikipedia.org

Vivint will be acquired by global investment firm Blackstone Group LP, valuing the company around $2 billion and making it one of the biggest deals in Utah history.

“Having Blackstone behind us supercharges our ability to continue growing the company and the technology and services we will roll out over the next few years” including international expansion, home health care and solar, Todd Pedersen, chief executive officer of Vivint, said in a telephone interview.

Sept 2012: Blackstone acquisition, Cont.

Photo courtesy of Vivint

Blackstone will replace Goldman Sachs Group Inc., Jupiter Partners LLC and Salt Lake City-based Peterson Partners, who combined own about 50 percent. The private equity firm is also purchasing portions from Vivint management. The investment firm will own 75 percent of the company while the other 25 percent will remain with management. Those numbers are subject to change, Pedersen said. The deal will be finalized by the end of the year, he said.

2013: Employment increases

Photo courtesy of Vivint

The company plans to add another 1,200 to 1,500 employees by the end of 2013, Pedersen said in a phone interview.

2013: Pedersen's future

Photo courtesy of Vivint

Pedersen, Vivint’s CEO, will stay on with the company after the acquisition and for “as many years as they will allow me.”

“I’m still young,” Pedersen, 43, who has a wife and five children, said. “I think I still have another 17 years in me.”

Pedersen, who owns more than 25 percent, will be selling half of his share in Vivint to Blackstone.