Finance

Headline focus: SunEdison purchases Vivint Solar for $2.2 billion


21 July 2015 by Tom van der Linden, Solarplaza

The big news hit the net yesterday afternoon: SunEdison is purchasing Vivint Solar, America's second largest residential installer.


Vivint

Here's some of the important stories surrounding this big deal:

SunEdison solidifies its position as one of the 'Supermajors' of the solar industry.

The deal with Blackstone includes cash, shares and debt. SunEdison is financing the deal with credit lines from Goldman Sachs and the sale of $922 million of assets to TerraForm Power, its yieldco vehicle.

SunEdison expands into the booming solar residential market.

Buying the second largest residential installer of the U.S., of course means a big foray into the residential market

The sale does not imply Blackstone's exit from the solar industry.

On the contrary, the company is planning to expand into solar, but now setting its crosshairs on larger scale solar power projects.

More winners may come forth from this deal, like SolarCity.

Deutsche Bank analyst Vishal Shah said the deal is positive news for the solar industry in general, and SolarCity specifically. “SolarCity has talked about evaluating a potential yieldco in future and this acquisition makes that strategy more credible,” Shah said.

SolarCity CEO Lyndon Rive commented.

The CEO of the country's no. 1 residential installer responded to the news, primarily expressing his hopes that under the new flag, the company will step up its advocacy efforts. "Vivint hasn't invested at all in policy ... it was disappointing" since the company is the No. 2 provider of residential solar panels, Rive said. "Solar is a disruptive technology, we are fighting the monopolies all the time and we need the entire industry to support"