NEW YORK (TheStreet) --Shares of SunEdison Inc. (SUNE) are rising higher by 10.66% to $18.38 in pre-market trading on Tuesday, following last night's announcement that the solar power provider and its TerraForm Power segment have signed a definitive agreement to purchase the privately held First Wind for $2.4 billion.
"With the purchase, SunEdison acquires the leading independent wind development and asset management company and becomes the leading global renewable energy development company," SunEdison said.
The company raised its 2015 project installation guidance to 2.1 GW to 2.3 GW, from 1.6 GW to 1.8 GW, as a result of the transaction.
The purchase of First Wind is expected to be "immediately accretive" to TerraForm Power and is expected to deliver $72.5 million in unlevered cash available for distribution, the company said.
The transaction is expected to close during the 2015 first quarter.
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Separately, TheStreet Ratings team rates SUNEDISON INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate SUNEDISON INC (SUNE) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and poor profit margins."