Home Americas Solar energy company Sunrun to buy peer Vivint Solar for about $1.46 bln
Solar energy company Sunrun to buy peer Vivint Solar for about $1.46 bln

Solar energy company Sunrun to buy peer Vivint Solar for about $1.46 bln

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Vivint Solar shareholders will receive 0.55 shares of Sunrun for each share held, the companies said in a statement, representing a premium of 10.4 per cent to Vivint’s Monday close

U.S. residential solar installer Sunrun Inc said on Monday it will buy peer Vivint Solar for about $1.46 billion in an all-stock deal.

Vivint Solar shareholders will receive 0.55 shares of Sunrun for each share held, the companies said in a statement, representing a premium of 10.4 per cent to Vivint’s Monday close.

The deal, unanimously approved by the companies’ boards, is valued at $3.2 billion including debt.

Sunrun’s shareholders will hold about 64 per cent of the combined company, with the rest owned by Vivint Solar’s stockholders.

The deal is expected to deliver annual cost savings of about $90 million, the statement said.

Credit Suisse Securities was the financial adviser to Sunrun, while Morgan Stanley and BofA Securities advised Vivint.

Vivint Solar in May reported an adjusted loss of $1.01 per share in its first-quarter results while withdrawing its full-year forecast. Sunrun posted a net loss of 23 cents per share for the same period.

Business Insider reported in April that Sunrun had laid off at least 100 workers and furloughed another 60 due to the impact of the coronavirus outbreak.

Source: reuters
Anand Gupta Editor - EQ Int'l Media Network
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