In connection with SunEdison’s proposed acquisition of Vivint Solar, SunEdison, the world’s largest renewable energy development company, has entered into a definitive purchase agreement with a subsidiary of TerraForm Power which, concurrently with the completion of SunEdison’s acquisition of Vivint Solar, will acquire Vivint Solar’s rooftop solar portfolio, consisting of 523 megawatts (MW) expected to be installed by year-end 2015, for $922 million in cash.
In addition, TerraForm Power, an owner and operator of clean energy power plants, will acquire future completed residential and small commercial projects from SunEdison’s expanded residential and small commercial (RSC) business unit.
The Vivint Solar management team will join SunEdison. SunEdison’s existing RSC development business and the Vivint Solar team will be merged. The transaction expands SunEdison’s RSC platform and is intended to accelerate SunEdison’s existing business in the United States, United Kingdom and Australia. The transaction is expected to close in the fourth quarter of 2015.
“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,” said Ahmad Chatila, SunEdison CEO and TerraForm Power chairman. “As of the fourth quarter of 2015, our organic growth and recent acquisitions will put SunEdison on track to deploy more than 1 gigawatt per quarter.”
“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 CEO.