Sunrun Agrees To Acquire Vivint Solar - Quick Facts

(RTTNews) - Sunrun (RUN) agreed to acquire Vivint Solar (VSLR) in an all-stock transaction, by which each share of Vivint Solar common stock will be exchanged for 0.55 shares of Sunrun common stock, representing a combined Enterprise Value of $9.2 billion based on the closing price of Sunrun's shares on July 6, 2020.

Vivint Solar stockholders are expected to own about 36% and Sunrun stockholders are expected to own about 64% of the fully diluted shares of the combined company.

The exchange ratio implies a 10% premium for Vivint Solar shares based on closing prices on July 6, 2020.

The acquisition of Vivint Solar is expected to be completed during the fourth quarter of 2020.

Sunrun expects to deliver meaningful cost synergies, estimated at $90 million on an annual basis

Sunrun's Board of Directors will be expanded by adding 2 directors, one of which is expected to be Vivint Solar's CEO, David Bywater.

Sunrun said that support Agreements have been obtained from both companies' largest stockholders, 313 Acquisition LLC (Blackstone affiliate) and Tiger Global, to vote their respective shares in favor of the merger and the share issuance, respectively.

In addition, 313 Acquisition LLC has agreed to lock up 50% of shares obtained as a result of the acquisition for 60 days following closing and the remaining 50% for 120 days.