Sunrun, a leading provider of residential solar, battery storage and energy services, has announced that it has completed its acquisition of Vivint Solar which was initially announced on July 6, 2020. This follows approval by regulators and stockholders of both companies. With the transaction complete, Sunrun solidifies its position as the leader in home solar and energy services across the United States and a top owner of solar assets globally with more than 3 gigawatts (GW) of solar energy and more than 500,000 customers.
â€śWelcome, Vivint Solar employees and customers,â€ť said Lynn Jurich, Sunrunâ€™s CEO and co-founder. â€śTogether, we will provide affordable, reliable and clean electricity at an exciting new scale. With our compelling services, millions of homeowners will rewire their homes with solar and batteries to enjoy enhanced comfort and affordability. The combined company benefits from the broad market reach and differentiated consumer offerings. A lower-cost structure from the greater scale will accelerate the transition away from polluting and unreliable fossil fuels.â€ť
The company issued in a statement that â€śSunrun will be a meaningful contributor to a fully renewable and electrified energy system. Its growing fleet of solar homes and batteries will be networked to provide greater benefits to the grid and energy consumers. Generating energy at the point it is used reduces the need for dirty energy being produced far away that is increasingly expensive to transmit. Our customers have already and will continue to help shut down inefficient carbon-producing power plants.â€ť
Over the coming months, product offerings will be transitioned to offer customers the best solutions, including expanded access to Sunrunâ€™s leading Brightbox rechargeable battery solution which enables homeowners to power through grid outages. Vivint Solar will continue to operate as a Sunrun company for the immediate future and will be integrated into the Sunrun organization over the coming quarters. Sunrun estimates annual cost synergies of approximately USD 90 million to be realised over 12 to 18 months.
As previously announced, Vivint Solar stockholders will receive 0.55 shares of Sunrun common stock for each share of Vivint Solar common stock they own immediately prior to the consummation of the acquisition.
Post-closing, Sunrun now has a market capitalisation of approximately USD 17 billion based on the closing prices of Sunrun common stock on October 7, 2020, and an enterprise value of approximately USD 22 billion on a fully-diluted basis pro-forma for the transaction as of the most recently reported quarter.