SolarCity surges on Silveo acquisition
SolarCity Corp. (NASDAQ:SCTY), the installer of rooftop power systems whose largest shareholder is billionaire Elon Musk, surged to the highest in more than two months after saying it agreed to buy Silveo, a solar panel manufacturer.
Shares of the San Mateo, California-based company soared 18 percent to $65.02 at 3:43 p.m. in New York after reaching $65.57, the highest intraday price since April 2.
The company will pay $200 million in stock for Silevo Inc. and may pay an additional $150 million if the company meets certain conditions, according to a filing with the Securities and Exchange Commission today.
SolarCity is driving a boom in U.S. rooftop solar energy by leasing systems that carry little to no upfront costs. It has more than 110,000 customers and expects to install as much as 1 gigawatt this year, using panels it buys from other companies.
Buying Silevo will lower installation costs for SolarCity by allowing it to produce its own more efficient solar panels.
Fremont, California-based Silevo is the latest buy in a shopping spree that SolarCity started last year.
In January, SolarCity bought startup Common Assets’ online platform to sell securities directly to investors. In October, the company bought Zep Solar, Inc. a maker of solar-module mounting systems, and in August acquired Paramount Solar, a solar sales and marketing firm.