The news that SunEdison and TerraForm would be acquiring Vivint Solar skyrocketed the company’s stock 41% in premarket trading on Monday.
The $2.2 billion deal encompassing cash and stock will aid the company in expanding their reach in residential and commercial solar energy.
SunEdison is offering Vivint shareholders $16.50 a share, a 52% premium from Friday’s closing price of $10.88.
In a statement, CEO and TerraForm Power chairman Ahmad Chatila wrote, “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 added, “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.”