Sunrun, the country’s largest residential solar company, announced on Monday night that it was acquiring a leading competitor, Vivint Solar, to form one of the world’s largest suppliers of solar equipment.
If approved, the agreement with all actions would create a company with about 500,000 customers, Sunrun said in a statement. The board members of both companies unanimously approved the agreement.
Sunrun said the deal had a corporate value – that is, including taking on debt – of $ 3.2 billion.
“Vivint Solar adds an important, high-quality sales channel that allows our combined company to reach more families and raise awareness of the benefits of solar energy and home batteries,” said Lynn Jurich, Sunrun’s chief executive and co-founder, in the announcement.
Sunrun, based in San Francisco, and Vivint, based in Lehi, Utah, occupied two of the top three positions in the residential solar market along with Tesla. Sunrun, founded in 2007, surpassed Tesla as the country’s leading residential solar company in 2018. In addition to residential solar panels, Sunrun and Vivint sell residential battery systems.
Sunrun focused on financing and installing solar panels and batteries, rather than producing these products. “Manufacturing, that’s not our main competence,” Jurich said in an interview with The New York Times in 2018.
The announcement on Monday cited the potential for continued growth in residential solar products, noting that only 3% of American homes were equipped.