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) 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) 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.
"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."