Vivint Solar surged 41% in premarket trading on Monday after news that it’s being acquired by SunEdison and TerraForm.
This deal will help SunEdison, already a giant in the renewable energy space, expand in the market for residential and commercial solar energy.
According to the statement, SunEdison and TerraForm Power are buying Vivint Solar for $US2.2 billion in cash and stock.
SunEdison is offering Vivint shareholders $US16.50 a share, a 52% premium from Friday’s closing price of $US10.88.
SunEdison shares rose about 3%.
SunEdison CEO and TerraForm Power chairman Ahmad Chatila wrote in the statement: “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.”
Chatila continued, “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.”
SunEdison also raised its 2016 annual guidance for production 50% to between 4,200 MW and 4,500 MW.
The merger is subject to shareholder approval.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.