SunEdison has signed an agreement with TerraForm Power Inc. to acquire First Wind, a renewable energy company in the U.S., for $2.4 billion immediately launching SunEdison into the wind power market.
As a result of the acquisition, SunEdison claims it has become the leading global renewable energy development company and has risen its 2015 projected installation guidance to 2.1 GW to 2.3 GW up from 1.6 GW to 1.8 GW. SunEdison said it plans to accelerate the rate of project development and growth opportunities by integrating First Wind’s wind platform into its own global project development and finance platform. The company said it will increase its total pipeline, backlog and leads by 8.0 GW immediately.
SunEdison will contribute $1.5 billion to the acquisition, $1.0 billion upfront. TerraForm Power will acquire First Wind’s portfolio for an enterprise value of $862 million. The acquisition is expected to close in the first quarter of 2015.
Ahmad Chatila, president and CEO of SunEdison, said in a statement the deal makes SunEdison and TerraForm Power “into diversified renewable energy companies” and will make SunEdison “the leading renewable power plant developer in the world.”