SunEdison is offering Vivint shareholders $16.50 a share, a 52% premium from Friday’s closing price of $10.88.
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SunEdison earlier this year bought Massachusetts-based wind power developer First Wind, which has projects operating and in the pipeline in Maine, for $2.4 billion.
SunEdison is to acquire Vivint Solar for approximately $2.2bn, payable in a combination of cash, shares of common stock and convertible notes.
In addition, Vivint’s management team will join SunEdison. The acquisition is valued at US$2.2-billion in cash, shares of SunEdison and SunEdison convertible notes.
The agreement still requires the approval of Vivint Solar stockholders in order to go ahead, as well as being subject to the notification and reporting requirements under the Hart-Scott-Rodino Act. It is expected to price during the week of July 27, 2015.
This deal will help SunEdison, already a giant in the renewable energy space, expand in the market for residential and commercial solar energy.
SunEdison said its unit, TerraForm Power Inc., would subsequently buy Vivint’s rooftop solar portfolio of 523 megawatts, expected to be installed by year-end 2015, for $922 million in cash.
To support the transaction, SunEdison has entered into a commitment letter with Goldman Sachs Bank U.S. for a US$500 million secured term loan facility to be provided to a wholly-owned, indirect subsidiary of SunEdison which will hold certain development assets of the expanded SunEdison RSC platform after the merger with Vivint Solar.
Vivint Solar CEO Greg Butterfield said: “This transaction with SunEdison delivers to Vivint Solar’s stockholders excellent value for the business we have built over the last four years”.
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The residential network will be incorporated into TerraForm Power’s portfolio.
