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A $2 billion solar energy deal is sending one stock up 40%

solar energy
solar energy

(REUTERS/Ueslei Marcelino) A gift for Vivint Solar shareholders.

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 $2.2 billion in cash and stock.

SunEdison is offering Vivint shareholders $16.50 a share, a 52% premium from Friday's closing price of $10.88.

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."

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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.



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