NRG Energy NRG announced that it has decided to acquire Vivint Smart Home, Inc. VVNT for $5.2 billion, which will expand its operation in the Essential Home Services Provider market. NRG will acquire Vivint in an all-cash transaction for $12 per share or $2.8 billion, as well as assume $2.4 billion Vivint’s debt (net of cash).NRG Energy had a goal to become a leading provider of essential services for homes and businesses and the acquisition of Vivint Smart Home is a positive move in that direction. This agreement, which has been unanimously approved by the boards of directors of both companies.This acquisition is expected to close during the first quarter of 2023, subject to the fulfilment of all customary closing conditions.How Will NRG Gain From This Acquisition?The combination of NRG and VVNT will form a leading provider in the essential home solutions market and create a unique end-to-end ecosystem driven by unparalleled data and insights.The deal will also improve and diversify NRG’s financial profile with more predictable earnings through Vivint’s subscription-based model and long-term customer agreements.NRG’s Capital Allocation GoalThe acquisition of VVNT is not going to change NRG’s long-term capital plans. NRG intends to complete its ongoing $1 billion share repurchase program over the near term, of which $360 million was remaining as of Nov 30, 2022. In 2023, NRG expects to use its excess free cash flow to fund the Vivint acquisition, reduce acquisition-related debt and maintain its common stock dividend growth policy.Merger and Acquisition (M&A) in Utility SpaceMerger and Acquisition agreements have resumed in the Utilities space after nearly two years of a COVID-19-induced lull in M&A activities. Utilities are on the verge of a transition, with a number of utilities coming out with plans to lower emissions and go carbon neutral.A lot of deals were signed in the first half of 2022 and a majority of them were to acquire clean natural gas utilities. The systematic acquisition of natural gas utilities will lower carbon footprints and allow the utilities to replace their old polluting generation units.Price PerformanceIn the past month, shares of NRG Energy have lost 22.3%, against the industry’s 6.3% growth. Image Source: Zacks Investment ResearchZacks Rank & Other Key PicksNRG Energy currently has a Zacks Rank #2 (Buy). Some other top-ranked stocks in the same sector are NiSource Inc. NI and ALLETE Inc. ALE, each currently carrying the same rank as NRG. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.NiSource and ALLETE’s long-term (three- to five-year) earnings growth are currently pegged at 6.8% and 9.3%, respectively.The Zacks Consensus Estimate for 2022 earnings for NiSource and ALLETE has moved up 0.7% and 0.3%, respectively, in the past 60 days. Just Released: Zacks Unveils the Top 5 EV Stocks for 2022 For several months now, electric vehicles have been disrupting the $82 billion automotive industry. And that disruption is only getting bigger thanks to sky-high gas prices. Even titans in the financial industry including George Soros, Jeff Bezos, and Ray Dalio have invested in this unstoppable wave. You don't want to be sitting on your hands while EV stocks break out and climb to new highs. In a new free report, Zacks is revealing the top 5 EV stocks for investors. Next year, don't look back on today wishing you had taken advantage of this opportunity.>>Send me my free report revealing the top 5 EV stocksWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NiSource, Inc (NI): Free Stock Analysis Report NRG Energy, Inc. (NRG): Free Stock Analysis Report Allete, Inc. (ALE): Free Stock Analysis Report Vivint Smart Home, Inc. (VVNT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research