NRG Energy (NYSE: NRG) has agreed to acquire Vivint Smart Home (NYSE: VVNT) in a deal that values the target at $5.2 billion, including debt. The transaction has the two companies' shares moving in opposite directions, with Vivint stock up about 32% on Tuesday but NRG trading down 16%.

Houston-based NRG is a power generation and utility behemoth that has long been searching for ways to lessen its reliance on power and move into more consumer markets. Vivint, maker of smart-home products including home security and lighting controls, fits well into that strategy, and provides NRG with added technological knowhow to round out its own home automation offering.

NRG CEO Mauricio Gutierrez in a statement called the acquisition "a transformational step in achieving our vision" to be at the leading edge of high-tech solutions for homes and businesses.

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Source Fool.com