Sunrun installer setting up solar panels on a residential roof in California.
The US solar installer Sunrun announced on Monday that it would buy Peer Vivint Solar for around $ 1.46 billion as part of an all-stock deal.
Vivint Solar shareholders receive 0.55 Sunrun shares for each share held, the companies said in a statement, which corresponds to a premium of 1
The deal, unanimously approved by the company’s board of directors, is valued at $ 3.2 billion, including debt.
Sunrun’s shareholders will hold around 64% of the combined company, the rest belongs to Vivint Solar’s shareholders.
The deal is expected to bring annual cost savings of around $ 90 million, the statement said.
Credit Suisse Securities acted as Sunrun’s financial advisor, while Morgan Stanley and BofA Securities advised Vivint.
Vivint Solar reported an adjusted loss of $ 1.01 per share in the first quarter results in May, while the full year forecast was withdrawn. Sunrun recorded a net loss of 23 cents per share over the same period.
Business Insider reported in April that Sunrun had laid off at least 100 workers and another 60 on leave due to the effects of the coronavirus outbreak.