Investors in Vivint Solar (NYSE:VSLR) soon will be investors in Sunrun (NASDAQ:RUN) after a stock-only merger is expected to close in this month. A result of the merger will be that holders of Vivint Solar stock will magically become Sunrun shareholders.
The merger was announced in July and is on a rapid track.
On Sept. 11, the two companies announced that the proposed deal got a pat on the back from the U.S. Justice Department, which approved the “early termination of the waiting period” normally required.
Observers seemed generally supportive of the proposed merger. The two companies also provide similar services to customers seeking solar-powered systems. In addition to selling and installing specialized solar equipment, both firms earn revenue by leasing the systems. This approach makes the systems more accessible to customers and providing regular income for the companies’ bank accounts.
A Look at Vivint Solar Stock
Vivint is a fairly young small-cap company based in Levi, Utah, that was founded in October 2011. The company designs and installs photovoltaic systems for the residential market in 23 states.
Vivint has a market capitalization about $5.5 billion. Shares of VSLR stock have been volatile. The stock’s 52-week low is $3.17 and, during the same period, it has climbed as high as $45.05 per share. VSLR stock has been hovering near its highs in recent days, with shares currently trading around $43. Vivint stock plunged during the sell-off induced by the novel coronavirus and has slowly clawed its way to around $10 per share when the merger with Sunrun was announced.