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US: Vivint Solar terminates $2.2 billion merger with SunEdison

By  |  March 8, 2016

Rooftop solar panel installer Vivint Solar said on Tuesday it had terminated an agreement under which it would have been taken over by solar energy company SunEdison after SunEdison failed to “consummate” the deal.

The cash-and-stock deal, worth $2.2. billion when it was forged last July, had faced criticism from hedge funds and other investors as SunEdison’s finances and share price weakened.

Vivint said it intended to “seek all legal remedies available” as a result of the “willful breach” of the merger agreement by SunEdison.

“We believe both companies will be better off on their own,” Cowen and Co. analysts wrote in a note to clients, noting that U.S. lawmakers had extended solar investment tax credits beyond 2016, breathing new life into the industry.

The Vivint deal was set to expire on March 18, the analysts said, adding that SunEdison could be liable for an amount “well above” the breakup fee of $34 million following a court hearing or likely settlement.

Full content: Forbes

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