July 20, 2015
With yet another multi-billion-dollar acquisition in the works, SunEdison isn’t just strengthening its position as one of the world’s top renewable energy developers — it is on a mission to become one of the largest energy companies in any sector.
This morning, SunEdison announced plans to acquire Vivint Solar, America’s second-biggest residential PV installer, for $2.2 billion in cash, stock and convertible notes. The acquisition will give SunEdison 4,000 new employees and a 523-megawatt portfolio of rooftop solar projects.
Those solar projects will be dropped into SunEdison’s YieldCo, TerraForm Power, adding $81 million in unlevered cash flow for investors. TerraForm once again increased its guidance on cash distribution per share from $1.70 to $1.75 — up from $0.90 when the YieldCo first went public last year.
Through 2019, the Vivint portfolio will offer $630 million in cash distributions for TerraForm investors. It will also make TerraForm the largest owner of residential solar projects out of any YieldCo.
SunEdison’s top executives are framing the deal as part of an aggressive strategy to rival the world’s top energy players, including oil majors and utilities.
“We are building the next generation of the biggest energy companies on earth,” said Julie Blunden, SunEdison’s chief strategy officer, speaking to GTM before the company’s investor call. “We’re not waiting to find out who they’ll be — we want it to be us.”