As a combined company, each business unit will work together to create fully-integrated solar power and battery-storage products for residential homes and commercial businesses, as well as full-scale grid projects. Each of the shares will be valued at $25.37, which is slightly less than the previously proposed price range.
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So has Antonio Gracias, who sits on the board at both companies. The deal will have to be approved by a majority of shareholders of both companies.
Tesla Motors has signed a deal to buy SolarCity for $2.6bn after announcing the deal in June.
Tesla says that it expects the merger with SolarCity to be finalized by the fourth quarter of 2016.
The merger will integrate the companies products and provide customers with a simple one-stop solar and storage experience, which they claim is one installation, one service contract, one phone app. “Tesla is getting ready to scale our Powerwall and Powerpack stationary storage products and SolarCity is getting ready to offer next-generation differentiated solar solutions”.
In its more recent announcement, Tesla said that the it expects the merged companies to achieve cost synergies of $150 million within the first full year.
SolarCity, based in San Mateo, Calif., was started in 2006 by brothers Peter and Lyndon Rive with help from Musk, their cousin. SolarCity shares fell Monday morning, diving 7.33% to $24.74, and Tesla shares were down 1.08% at $232.25.
About 1 percent of the 17 million cars sold in the US are electric and only 1.4 percent of single family homes have solar power.
The deal also includes a 45 day period “go-shop” provision, which will allow SolarCity to solicit from alternative proposals during the time period.
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Tesla first made the move to acquire SolarCity in June, and the all-stock offer has since been under deliberation. Solar City now has until 14 September 2016 to change its mind in case it finds a better buyer.
