Tesla made an announcement today that they have agreed to buy SolarCity for whooping $2.6 billion. This merge could create world’s only vertically integrated sustainable energy company. The billion dollar deal was first announced in late June and now they have reached an agreement to combine.
Now is the right time to bring our two companies together: Tesla is getting ready to scale our Powerwall and Powerpack stationary storage products and SolarCity is getting ready to offer next-generation differentiated solar solutions. By joining forces, we can operate more efficiently and fully integrate our products, while providing customers with an aesthetically beautiful and simple one-stop solar + storage experience: one installation, one service contract, one phone app, explained Musk. Musk is the largest shareholder in both companies and is chairman of SolarCity.
This deal gives SolarCity stockholders 0.110 Tesla common shares for every share held, valuing SolarCity common stock at $25.37 per share based on the 5-day volume weighted average price of Tesla shares as of July 29, 2016.
It’s a conservative estimate, says billionaire entrepreneur Elon Musk.