More Acquisitions On The Horizon After Sunedison Inc (NYSE:SUNE) Bought Vivint Solar Inc (NYSE:VSLR)

Sunedison Inc (NYSE:SUNE) has proposed to purchase Vivint Solar Inc (NYSE:VSLR), a residential solar installer for $2.2 billion. What is clear here is that SunEdison is paying a premium price for Vivint. The acquisition of Vivint will bolster SunEdison’s position in the potentially lucrative residential solar market.

However, the move by SunEdison to bring Vivint under its wing also seems to give hints about possible widespread acquisitions in the solar world.

Acquisitions and collaborations

Earlier this year, Canadian Solar Inc. (NASDAQ:CSIQ) acquired Recurrent Energy. In the same period, Duke Energy Corp (NYSE:DUK) tapped REC Solar.

In other developments, SolarCity Corp (NASDAQ:SCTY) is likely expanding to panels making, while SunPower Corporation (NASDAQ:SPWR) and First Solar, Inc. (NASDAQ:FSLR) have established their development units.

Potential buyout targets

Anymore deals in the solar space? Sungevity could be a possible target by Canadian Solar. Sungevity is doing well on the customer acquisition front and the company currently outsources its installation jobs because it doesn’t have an internal unit to carry out installations.

Sunrun also looks like a suitable buyout target. The company last year brought its operations in-house. Sunrun generated $198.6 million in revenue last year but posted a loss of $168 million for the period.

Tigo Energy is another interesting solar asset. The company makes electronics that enhance the output of solar panels. There were speculations that SolarCity was interested in Tigo Energy, but there hasn’t been much about a possible deal of late. Tigo Energy competes with Solaredge Technologies Inc (NASDAQ:SEDG) and Enphase Energy.

OneRoof Energy is another well-placed residential solar financier and installer. The company currently contracts its solar installations projects to third-party partners.

Residential solar market in rapid expansion

In the solar market, residential solar has been seeing exciting growth, with installations going by 76% in the first quarter 2015. Vivint is among the top ranked residential solar installers, standing at the second-largest in the U.S. market.

It will be interesting to see how rivals react to Sunedison Inc (NYSE:SUNE)’s move to tap Vivint. In addition to its rapid growth, Vivint is also linked to high-profile organizations, including a successful home security company. When it comes to performance, Vivint is also doing well. The company boasts high levels of efficiency in its installations.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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