SunEdison has signed a definitive agreement to acquire US based Vivint Solar for $2.2bn to expand into residential and commercial solar energy market.
SunEdison said that it would pay for the deal in a combination of cash and shares of the company along with convertible notes.
Vivint Solar is one of the leading providers of distributed solar energy in the US, and the company allows its customers to lease its solar systems rather than buying them up front.
SunEdison said that its unit TerraForm Power will acquire Vivint’s 523MW rooftop residential solar portfolio for $922m in cash. The projects are expected to be completed by the end of this year.
The rooftop projects are expected to add long-term contracted and geographically diverse asset to SunEdison’s portfolio, and is likely to strengthen its global presence.
SunEdison chief executive officer 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 U.S. and globally.
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By GlobalData“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.”
