SunEdison is acquiring Vivint Solar for $2.2 bn

SunEdison will acquire Vivint Solar for about $2.2 billion. The US-based renewable energy company is acquiring the solar energy company to expand its residential and commercial solar rooftop portfolio.

In due course Terraform Power, a subsidiary of SunEdison, will also acquire Vivint’s rooftop solar portfolio for $922 million in cash. The portfolio is expected to comprise 523 megawatts by end of the year.

Bloomberg, quoting from a regulatory statement issued on Monday, reports that Vivint Solar holders will receive $16.50 a share — including $9.89 in cash — besides $3.31 in SunEdison stock. Also, the buyers will receive another $3.30 in convertible notes.

On Friday the shares of Vivint had closed at $10.88 per unit and the price offered is a 52 percent premium on the price, the report adds.

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SunEdison has stated the acquisition was part of the company’s drive to accelerate expansion into the rooftop solar market. The renewable energy major expects the transaction to help double its installations in 2016 to the range of about 4,200 megawatts to 4,500 megawatts.

Vivint will continue to expand and fold assets into TerraForm, the report says.

Earlier this month, SunEdison signed a joint development agreement with Advanced Microgrid Solutions, a creator of hybrid-electric buildings to finance and deliver 50 megawatts of energy storage for the utility Southern California Edison.

SunEdison’s subsidiary Terraform Power will acquire the project once it becomes operational, according to a statement.

Ajith Kumar S

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