Renewable energy giant SunEdison (NYSE: SUNE), announced their decision on Monday to acquire Vivint Solar Inc. (NYSE: VSLR) for $2.2 billion in cash and stock.
SunEdison manufactures advanced solar technology and develops, finances, installs and operates distributed solar power systems, delivering cost effective electricity and services to its residential, commercial, utility and government consumers. In 2014, the company built the largest solar plant in South America within three months. Today, the company generates enough energy to power over 20,000 homes.
SunEdison aims to expand their market for residential and commercial solar energy along with their publicly traded power plant unit, TerraForm Power Inc. (NASDAQ: TERP). According to a securities filing, TerraForm plans to sell about 56.6 million shares for between $19 and $21 a share. In addition, the unit will install Vivint’s rooftop solar portfolio of 523 megawatts (MW) for $922 million in cash by the end of the year.
As part of the settlement, Vivint shareholders will receive $9.89 in cash, $3.31 in stock and $3.30 in notes for every share held. The offer works out to $16.50 per share, a 51.7% premium to Vivint’s Friday close.
"SunEdison's acquisition of Vivint Solar is a logical next step in the transformation of our platform after the successful execution of our First Wind acquisition in January 2015,” said SunEdison CEO and TerraForm Power Chairman Ahmad Chatila.
The deal is expected to close in the fourth quarter of the year.