Residential solar electricity provider Sunrun Inc. [NASDAQ: RUN] announced that they have decided to acquire the rival American solar energy company Vivint Solar Inc. [NYSE: VSLR] for about $3.2 billion including debt.
Shareholders of Vivint Solar will gain 0.55 shares of Sunrun for each share held. Sunrun’s shareholders will own about 64% of the joint venture, while the remaining 36% will be held by Vivint Solar’s shareholders.
The exchange ratio means a 10% premium for Vivint Solar shares based on closing prices on Monday and a 15% premium to the exchange ratio implied by the three-month volume-weighted average price of Vivint Solar and Sunrun shares.
Sunrun Inc and Vivint Solar Inc both aimed to make a planet run by the sun. Both companies shared a mission of empowering families to take control of their energy future. Companies said that there is a need to decarbonize our current energy system.
In the past 52-weeks of trading Solar Energy Inc., stocks have fluctuated between a low of $7.84 and a peak of $23.66. Right now, its stock soared 6.70% and up +1.34 during the trading session of Monday. It has a closing price of $21.34. RUN has a day low and day high range of $20.53-$21.70, respectively.
Sunrun Inc. most recently reported a gross margin of 23.60%, and operating margin of -26.80%, and a profit margin of 1.40%. This company has return on assets (ROA) of 0.20%, return on equity (ROE) of 1.30%, and return on investment (ROI) of -5.80%.
On the other hand, Vivint Solar Inc. stocks exhibited a change of +0.56 and a percentage change of 5.56% at a closing price of $10.63. It has recorded the day low range of $10.30 and a high range of $10.86.
VSLR’S Gross Margin is currently 23.90%, Profit Margin is -32.00% and an Operating Margin is -54.90%. Continuing to look at its profitability, Vivint Solar Inc’s Return on Assets, Equity and Investment is sitting at -4.30%,-60.30%, -20.00%, respectively.