23 July 2015

Forget About "Star Wars" > Solar Power Industry is Heating Up in Arizona & Mesa

Believe it or not, a Lehi Utah-based company has been acquired for $2.2 Billion
SunEdison, Inc. (NYSE: SUNE), the world's largest renewable energy development company, Vivint Solar (NYSE: VSLR), a leading provider of residential solar systems in the United States, and TerraForm Power, Inc. (together with its subsidiaries, TerraForm Power) (Nasdaq: TERP), an owner and operator of clean energy power plants, today announced that SunEdison and Vivint Solar have signed a definitive merger agreement pursuant to which SunEdison will acquire Vivint Solar for approximately $2.2 billion, payable in a combination of cash, shares of SunEdison common stock and SunEdison convertible notes.
See Business Wire News Release from 20 July 2015 Business Wire News

Keep in mind that Solar City, founded in 2006 by Tesla Master-mind Elon Musk, has had a Mesa location for a number of years and might have mixed feelings about this market acquisition.
Apple's new global command center has promised to be reliant on renewable energy so time will tell who wins out as the provider. 
Money Flow Index reports that Shares of SolarCity Corporation appreciated by 5.37% during the last five trading days but lost 4.06% on a 4-week basis. SolarCity Corporation has dropped 6.31% during the last 3-month period . Year-to-Date the stock performance stands at 3.52%.

Chance Allred Vivent VP Sales
Yesterday Zacks Equity Research http://www.zacks.com/stock/news/182796/solar-etfs-in-focus-on-sunedisonvivint-dealhad this to say: As per the terms of the deal, Vivint shareholders will receive $16.50 per share in cash, shares, and convertible debt – a 52% premium to Vivint’s closing price of $10.88 a share on Friday . . . With this transaction, SunEdison will enter the residential solar market, where Vivint is already a top player. Vivint’s solar systems are quite popular among households as it allows homeowners to lease its systems rather than buying them outright . . . "
Some Arizona utility regulation issues are still to be worked out with assessing a new valuation on leased and financed systems..

Vivint Solar opened offices in Mesa in June of last year and operates in eleven other states. Vivint made the decision after the net-metering compromise last year, with the Arizona Corporation Commission deciding to impose an extra $5 fee per month, instead of the $50-$100 Arizona Public Service Co. was proposing.

Computer World http://www.computerworld.com/article/2950587/sustainable-it/sunedison-drops-22b-to-acquire-vivint-solar.html also made the acquisition announcement, noting that Hewlett-Packard had signed a 12-year power purchase with SunEdison ..... 

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