NEW YORK (TheStreet) -- SunEdison (SUNE) shares are up by 5.70% to $33.36 in early market trading on Monday, after the solar energy company announced today that it has agreed to acquire rival Vivint Solar (VSLR) - Get Vivint Solar Inc Report for $2.2 billion. 

SunEdison is offering Vivint shareholders $9.89 per share in cash, $3.31 in stock and $3.30 in notes, for a total of $16.50 for every share they hold.

The per share purchase price represents a 51.7% upside from the stock's closing price on Friday.

SunEdison's TerraForm Power (TERP) - Get TerraForm Power, Inc. Class A Report unit will acquire Vivint's rooftop solar portfolio, which will consist of 523 megawatts by year's end, for $922 million in cash as part of the deal.

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"We want to accelerate how fast we penetrate that market. We're just seeing the first of the renewables supermajors and SunEdison will be at the top," SunEdison chief strategy officer Julie Blunden told Bloomberg.

Separately, TheStreet Ratings team rates SUNEDISON INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate SUNEDISON INC (SUNE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Powered by its strong earnings growth of 59.11% and other important driving factors, this stock has surged by 32.97% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 39.4% when compared to the same quarter one year prior, rising from -$614.00 million to -$372.00 million.
  • Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, SUNEDISON INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$308.00 million or 43.12% when compared to the same quarter last year. Despite a decrease in cash flow SUNEDISON INC is still fairing well by exceeding its industry average cash flow growth rate of -79.35%.
  • The debt-to-equity ratio is very high at 77.64 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.37, which clearly demonstrates the inability to cover short-term cash needs.
  • You can view the full analysis from the report here: SUNE Ratings Report