Reuters contributor Anannya Pramanick reports that solar company SunEdison plans to purchase Vivint Solar through a deal valued at approximately $2.2 billion.
Aiming to expand the company's residential and commercial solar power outreach, SunEdison's unit, TerraForm Power, will adopt Vivint's rooftop solar portfolio of 523 megawatts, expected to be installed by the end of 2015 for $922 million in cash.
Vivint is the second-largest installer of rooftop solar panels following SolarCity, and has operations in seven states including California and New York. SunEdison offered Vivint shareholders $16.50 per share ($9.89 in cash, $3.31 in stock, and $3.30 in notes). The company went public last October.
According to Zacks Equity Research, Vivint Solar's stock soared following the announcement that they would be acquired by SunEdison:
"Vivint Solar, Inc. (VSLR) was a big mover last session, as the company saw its shares rise nearly 45% on the day. The upside came on the company’s announcement that it has entered into a definitive merger agreement with SunEdison, Inc. (SUNE - Analyst Report) per which, Vivint is to be acquired by the latter. It breaks the recent trend for the company, as the stock is now trading above the volatile price range of $10.17 to $13.73 in the past one-month time frame."