Vivint Solar cancels SunEdison acquisition

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Vivint Solar said in a statement that it would ‘seek all legal remedies available to it in respect of such willful breach.’

Updated: US residential PV installer Vivint Solar has informed SunEdsion that its failure to complete the acquisition of the company under its obligations has resulted in the termination of the deal. 

Vivint Solar said in a statement that it would ‘seek all legal remedies available to it in respect of such willful breach.’

The deal was initially announced in June 2015, which included 523MW of operating assets and 1.6GW of PV installation pipelines held by Vivint Solar that valued the deal at around US$2.2 billion that SunEdison yieldco, TerraForm Power was to acquire. 

In December, 2015 SunEdison and Vivint Solar agreed to amend the conditions of the merger as SunEdison’s financial position continued to deteriorate and its share price on the NYSE plummeted over 80%. 

The amended deal included private equity firm Blackstone, the major shareholder in Vivint Solar committing US$250 million in a credit facility to SunEdsion to keep the deal alive. 

Update (2)

Last night, Vivint Solar issues a statement that it had commenced an action in the Court of Chancery of the State of Delaware suing SunEdison over its failure to complete the merger acquistion of Vivint Solar.

Gregory Butterfield, President and CEO of Vivint Solar stated “SunEdison has willfully breached its obligations under the merger agreement and we intend to pursue Vivint Solar's remedies vigorously.”

The company did not disclose what level of financial compensation it was seeking.

In an SEC filing today, SunEdison confirmed the legal position of Vivint Solar cancelling the merger agreement and confirmation that it was being sued by the US PV installer.

Read Next

August 17, 2020
The solar sector’s Q2 results season showed that, for the most part, the pandemic’s impact on deployment in the US was restricted to early in the quarter, helping many companies post better-than-expected performance in Q2. But as Liam Stoker suggests, COVID-19’s tail could be longer than anticipated.
July 23, 2020
Tesla deployed just 27MW of rooftop solar in Q2 2020, its worst quarter for deployment on record, but chief executive Elon Musk remains buoyant about the product’s long-term prospects.
July 8, 2020
Major synergies, complementary sales lines and COVID-proof business models make acquisition perfect sense, Sunrun chief says
July 7, 2020
US residential solar installer Sunrun is to acquire rival Vivint Solar as part of a US$3.2 billion all-stock deal that constitutes a major shake-up for the US solar market.
June 3, 2020
US$245m upsizing of existing facility and US$300m new package from Brookfield bring debt injection to firm bracing last month for quarterly installs to drop to levels unseen since 2017.
May 11, 2020
SunPower expects ‘material impact’ on manufacturing operations in Q2 while Vivint predicts roll-out to tank this quarter, bringing a temporary setback to both firms after relatively stable Q1.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK
Solar Media Events
December 1, 2021