SunEdison Inc. has signed an agreement to acquire distributed solar energy provider Vivint Solar for US$2.2 billion.
The amount is payable in a combination of cash, shares of SunEdison common stock and SunEdison convertible notes. Once the transaction is completed, TerraForm Power will acquire Vivint Solar’s rooftop solar portfolio from SunEdison consisting of 523 megawatts expected to be installed by year-end 2015, for US$922 million in cash.
TerraForm Power will also acquire future completed residential and small commercial projects from SunEdison’s expanded residential and small commercial business unit. The rooftop solar portfolio is expected to add a growing, high-quality, long-term contracted and geographically diverse asset base to the SunEdison family of companies, strengthening one of the largest and highest-growth global renewable power platforms in the world.
The Vivint Solar management team will join SunEdison. SunEdison’s existing RSC development business and the Vivint Solar team will be merged. The transaction expands SunEdison’s strong RSC platform and is intended to accelerate SunEdison’s existing business in the United States, United Kingdom and Australia.