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Sunrun picking up Vivint Solar
Posted on Tuesday, 07 July 2020 11:06
Nasdaq-listed Sunrun has signed on the dotted line to pick up Vivint Solar, a New York-listed provider of residential solar services.
Under the terms of the transaction, the buyer will issue 0.55 shares as consideration per item of stock purchased, thereby giving the deal an enterprise value of USD 9.20 billion.
Following completion, Vivint shareholders will own a 36.0 per cent stake in the combined business, with Sunrun investors holding the remaining 64.0 per cent.
Commenting on the purchase, Sunrun chief executive Lynn Jurich said: "This transaction will increase our scale and grow our energy services network to help replace centralised, polluting power plants and accelerate the transition to a 100% clean energy future.”
“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.”
Her counterpart at Vivint, David Bywater, said the move will enable the company to reach more customers and will create value for its clients, shareholders and partners.
The resulting business has a combined customer base of close to 500,000, while the transaction is expected to result in annual savings of around USD 90.00 million.
Both companies’ boards have already given their unanimous seals of approval to the purchase, which still requires the green light from shareholders and regulators and is slated to close in the fourth quarter of this year.
Vivint posted revenue of USD 91.15 million in the first quarter of 2020, up from USD 69.37 million over the corresponding timeframe of last year.
Gross profit for the three months stood at USD 16.28 million, widened from USD 11.92 million in Q1 2019.
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