Sunrunand and Vivint Solar have entered into a final agreement pursuant to which Sunrun will acquire Vivint Solar in an all-stock transaction.
Each share of Vivint Solar common stock will be exchanged for 0.55 shares of Sunrun common stock, representing a combined enterprise value of $9.2 billion based on the closing price of Sunrun’s shares on 6 July 2020.
Vivint Solar shareholders are expected to own about 36 percent and Sunrun shareholders are expected to own about 64 percent of the combined company’s fully diluted shares.
The exchange ratio implies a 10 percent premium for Vivint Solar shares based on closing prices on July 6, 2020, and a 15 percent premium on the exchange ratio implied by Vivint Solar and Sunrun’s three-month weighted average price.
“Americans want clean and resilient energy. Vivint Solar adds an important and high-quality sales channel that enables our combined company to reach more households and raise awareness about the benefits of home solar and batteries. This transaction will increase our scale and grow our energy services network to help replace centralized, polluting power plants and accelerate the transition to a 100% clean energy future. We admire Vivint Solar and its employees, and look forward to working together as we integrate the two companies.”Lynn Jurich, Sunrun’s chief executive officer and co-founder.
“Vivint Solar and Sunrun have long shared a common goal of bringing clean, affordable, resilient energy to homeowners. Joining forces with Sunrun will allow us to reach a broader set of customers and accelerate the pace of clean energy adoption and grid modernization. We believe this transaction will create value for our customers, our shareholders, and our partners.”David Bywater, chief executive officer of Vivint Solar.