SunEdison's controversial acquisition of residential solar installer Vivint Solar has dragged on for five months since it was first announced. However, today Vivint issued a regulatory filing calling for a shareholder vote, putting the deal one step closer to closing.
Vivint's proxy statement follows a modification of the terms of the acquisition earlier this month, which saved cash for SunEdison while lifting a January 31, 2016 deadline to close. The new deal allowed holders of Vivint stock to accept additional SunEdison stock or cash consideration, and since that time shareholders have taken the cash option.
Basically, this is a formality, Mercom Capital CEO Raj Prabhu told pv magazine. Prabhu notes that as Blackstone holds a majority of Vivint Solar stock and has approved the deal, there are no real hurdles left on Vivint's side.
The ball is now in SunEdison's court, and according to the SEC filing the companies expect the merger to close in the first quarter of 2016. While Prabhu notes that anything can happen, he also says that this deal looks much better now that the U.S. federal Investment Tax Credit (ITC) has been extended for another three-plus years.
According to recent rankings by GTM Research, Vivint is the second-largest solar installer in the U.S. residential market, with a 12% market share in 2015 so far.
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