Investing.com -- Vivint Solar (NYSE:VSLR) Inc. soared 34% after Sunrun (NASDAQ:RUN) Inc. said it would buy its Blackstone-backed rival for $1.46 billion in an all-stock deal. Sunrun rose 22% to a record.
The two compete against Tesla’s solar power segment. Shares of Tesla (NASDAQ:TSLA), which have been breaking records, are up 2.7%.
Vivint reported first quarter revenue of $303.2 million, up almost 10% from a year earlier. Sunrun reported first quarter revenue of $210.7 million, up 8% from the first quarter of 2019.
Tesla’s energy generation and storage segment revenue fell by 10% in the first quarter of 2020 compared to a year earlier, totalling $293 million.
Vivint shares will be exchanged for 0.55 shares of Sunrun common stock, representing a combined enterprise value of $9.2 billion. Vivint stockholders will own about 36% of the combined company, and Sunrun stockholders the remainder.
Cost synergies are estimated at $90 million annually, and the acquisition should be completed during the fourth quarter of 2020.