US-based Vivint Solar operates in seven states including California, Hawaii, Maryland, Massachusetts, New Jersey, New York, and Washington D.C.
The company provides distributed solar energy to residential, commercial and industrial customers across the US.
As per the deal, SunEdison will give Vivint stockholders $9.89 in cash, $3.31 in stock and $3.30 in convertible notes for each share held.
In addition, SunEdison’s unit TerraForm Power has signed a deal with Vivint to buy its rooftop solar portfolio of 523MW for $922m. The rooftop solar projects are expected to be installed by the end of this year.
TerraForm Power will also buy residential and small commercial projects, that are due to be completed in future, from SunEdison’s expanded residential and small commercial (RSC) business unit.
SunEdison will merge its existing RSC development business with the Vivint Solar.
SunEdison chief executive officer Ahmad Chatila said: "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.
"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."
SunEdison has also increased its 2016 annual guidance for installations by 50% to between 4.2GW and 4.5GW.
Image: Vivint Solar provides distributed solar energy to residential, commercial and industrial customers in the US. Photo: courtesy of graur codrin/FreeDigitalPhotos.net.
