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Sunrun to acquire solar energy rival Vivint Solar for $3.2 billion

Sunrun to acquire solar energy rival Vivint Solar for $3.2 billion
Sunrun to acquire solar energy rival Vivint Solar for $3.2 billion

Sunrun, a renowned U.S. based home solar installation company, has reportedly agreed to acquire its most prominent rival, the Utah-based Vivint Solar. The company plans to buy out Vivint for an enterprise valuation of $3.2 billion, rivaling the price tags of other high-profile renewable energy acquisitions. Earlier in 2014, Google purchased Nest for an amount of $3.2 billion, while in 2016 Tesla acquired SolarCity for more than $2.6 billion.

This new stock-for-stock agreement would expand Sunrun’s portfolio to over 3 gigawatts. The deal would also extend the company’s customer portfolio to approximately 500,000. While already the country’s leading home solar installer, this acquisition would make the firm the third biggest owner of U.S. solar capacity throughout all industry segments, and the firm now sees an open and clear way to the top spot.

This acquisition would merge two firms with substantially overlapping business models as well as similar visions towards a well-distributed energy future. While both Vivint and Sunrun cover slightly different geographic areas, both firms install rooftop solar across the U.S. through direct sales, loans, and leases.

As per Wood Mackenzie, Vivint Solar and Sunrun together held a 17.5% share of the residential solar industry in the U.S. in 2019, while Tesla, which comes in at the third spot, held a 4.6% industry share.

CEO of Sunrun, Lynn Jurich stated that the companies have a big ambition for they can accomplish together. The company is looking at a significantly untapped rooftop solar market in the U.S., with only 3% of the U.S. households having transitioned to home-based solar.     

Jurich further added that on a larger scale, with a greater number of consumers, and a lower cost structure, the company would prove to be a crucial contributor to a completely renewable as well as electrified energy system.

Vivint and Sunrun have a few other national-level rivals like Sunnova and Tesla. However, they would also be competing an extensive list of smaller local or regional players.

 

Source credit: https://www.greentechmedia.com/articles/read/sunrun-announces-acquisition-of-vivint-solar

 

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Bhushan Tambe

A qualified computer graduate, Bhushan Tambe always nurtured a passion for words. Post his education, he decided to transform his penchant of penning down poetry and stories into a full-time career. Presently, Bhushan writes numerous articles for cuereport.com and a few other websites, on subjects spanning business, finance, and the like.