MARYLAND HEIGHTS, Mo.—The world’s largest renewable energy development company, SunEdison has announced it, along with its subsidiary, TerraForm Power, have entered into an agreement to purchase Vivint Solar. The acquisition is valued at US$2.2-billion in cash, shares of SunEdison and SunEdison convertible notes.
“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 Ahmad Chatila, SunEdison CEO and TerraForm Power chairman. “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 U.S. and globally.”
“As of the fourth quarter of 2015, our organic growth and recent acquisitions will put SunEdison on track to deploy more than 1 gigawatt per quarter,” he added.
A leading provider of residential solar systems in the United States, Vivint has a rooftop solar portfolio expected to reach 523 megawatts by the end of 2015. The residential network will be incorporated into TerraForm Power’s portfolio. The company said the addition of residential and small commercial projects and cash available for distribution to TerraForm is expected to provide greater visibility and predictability to CAFD growth and dividend per share accretion at TerraForm .
In addition, Vivint’s management team will join SunEdison. The company expects the transaction to expand its residential and small commercial business unit as well as accelerates the company’s existing busniess in the U.S., UK and Australia.
Under the merger agreement, Vivint stockholders will receive $16.50 per share, consisting of $9.89 per share in cash, $3.31 per share in SunEdison stock, and $3.30 per share in SunEdison convertible notes.
With today’s announcement, SunEdison also initiated 2016 annual guidance of 4,200 megawatts to 4,500 megawatts, a 50 percent increase from its prior outlook of 2,800 megawatts to 3,000 megawatts.