SunEdison to buy Vivint Solar in $2.2 billion deal
Renewable energy company SunEdison Inc. said Monday it has agreed to acquire residential solar systems company Vivint Solar for about $2.2 billion in cash, stock and convertible notes. As part of the agreement, TerraForm Power , an owner of clean energy power plants, will acquire Vivint's rooftop solar portfolio for $922 million in cash. The portfolio comprises 523 megawatts expected to be installed by year end. TerraForm will acquire future residential and commercial projects from SunEdison, which is expanding its residential and small commercial business unit. "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," Chief Executive Ahmad Chatila said in a statement. SunEdison is now expecting to generate 4,200 megawatts to 4,500 megawatts in 2016, up 50% from prior guidance. Vivint shares surged 40% in premarket trade, while SunEdison slid 0.9% and TerraForm was not yet active.
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