Sunrun installer placing electric solar panels on a residential rooftop in California.
Source: Sunrun
United States residential solar installer Sunrun said Monday it will buy Vivint Solar for about $ 1.46 billion in a stock deal.
Vivint Solar shareholders will receive 0.55 Sunrun shares for each share they own, the companies said in a statement, representing a 10.4% premium at Vivint’s close of business on Monday.
The deal, unanimously approved by company boards, is valued at $ 3.2 billion, including debt.
Sunrun shareholders will own approximately 64% of the combined company, with the remainder owned by Vivint Solar shareholders.
The deal is expected to generate annual savings of approximately $ 90 million, according to the statement.
Credit Suisse Securities was Sunrun’s financial advisor, while Morgan Stanley and BofA Securities advised Vivint.
Vivint Solar reported an adjusted loss of $ 1.01 per share in its first-quarter results in May while withdrawing its full-year forecast. Sunrun posted a net loss of 23 cents a share during the same period.
Business Insider reported in April that Sunrun had fired at least 100 workers and suspended another 60 due to the impact of the coronavirus outbreak.
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