SunEdison to acquire Vivint Solar for $2.2bn

Renewable energy firm SunEdison has signed an agreement to acquire residential solar systems Vivint Solar for $2.2bn.

Under the terms of the agreement, each shareholder of Vivint Solar will receive $16.50 per share, including $9.89 in cash, $3.31 share in SunEdison stock, and $3.30 share in SunEdison convertible notes.

The company expects to issue approximately $370m of
its common stock and approximately $350m of convertible notes to Vivint Solar stockholders.

SunEdison CEO and TerraForm Power chairman Ahmad Chatila said: “We expect the Vivint Solar transaction to create significant value for our stockholders through the accretion in our TerraForm Power ownership, the acceleration of our Incentive Distribution Rights and an immediate expansion of our capacity and bandwidth to grow our residential business in the US and globally.

“As of the fourth quarter of 2015, our organic growth and recent acquisitions will put SunEdison on track to deploy more than 1GW per quarter.”

SunEdison expects the transaction to accelerate its existing business of in the US, UK and Australia.

In relation with the deal, the SunEdison signed another agreement with a subsidiary of TerraForm Power to sell Vivint Solar’s 523MW rooftop solar portfolio, for $922m.

In future, TerraForm Power will also acquire completed residential and small commercial projects from expanded residential and small commercial (RSC) business unit of SunEdison.

TerraForm Power CEO Carlos Domenech said: “Vivint Solar’s profile of cash available for distribution is attractive and aligned with TerraForm’s growth profile, and the team has proven its ability to scale rapidly and successfully.”

Subject to approval, the transaction is scheduled to be completed in the fourth quarter.

SunEdison plans to finance the deal through proceeds from the sale of Vivint’s rooftop business to TerraForm, and a $500m secured debt.

Separately, the company, today, announced the acquisition of its sales and installation partner Mark Group to establish a direct sales channel in the UK.

Mark claims to have two million customers in the country.