Bethesda-based TerraForm Power (Nasdaq: TERP) is going to get a large piece of a $2.2 billion solar deal involving SunEdison (NYSE: SUNE) and Vivint Solar (NYSE: VSLR).
Maryland Heights, Miss-based SunEdison is among the world's largest renewable energy companies and is transforming the way it's produced, owned , and distributed far and wide and is about to get much larger with the closing of this deal.
SunEdison was based in Beltsville, Maryland before merging with Monsanto Electronic Materials Company (MEMC) in 2009, TerraPower is an indirect subsidiary of SunEdison. This would be one of the company's largest deals since that time.
All three companies announced that they have consented to a complete merger arrangement where SunEdison will purchase Vivint Solar for roughly $2.2 billion, which will be payable in a mix of cash, SunEdison convertible notes and shares of SunEdison common stock.
SunEdision said TerraForm Power will benefit from acquiring future completed residential and small commercial projects from SunEdison's expanded residential and small commercial (RSC) business unit. In detail, TerraForm Power will acquire Vivint's rooftop solar portfolio, consisting of 523 megawatts (MW) for $922 million. The total solar portfolio is expected to be installed by year-end 2015 and high quality and long-term growth.
"TerraForm Power is excited to expand our residential solar portfolio with the acquisition of Vivint Solar assets, including 523 MW, which will accelerate our growth in this segment," said Carlos Domenech, TerraForm Power's chief executive officer. "Vivint Solar's profile of cash available for distribution is attractive and aligned with TerraForm's growth profile, and the team has proven its ability to scale rapidly and successfully. With immediate accretion to our stockholders at initial drop down and the predictable flow of drop down assets into the future, we see this acquisition as creating substantial value for our stockholders."