MEMC Electronic Materials to acquire SunEdison

Fri. October 23, 2009; Posted: 02:42 PM

Oct 23, 2009 (Datamonitor Financial Deals Tracker via COMTEX) -- WFR | Quote | Chart | News | PowerRating -- MEMC Electronic Materials, Inc., a manufacturer and seller of wafers and related intermediate products to the semiconductor and solar industries, has entered into an agreement to acquire SunEdison, LLC, a provider of solar energy services, for $200 million. Both the companies are based in the US.

MEMC Electronic Materials will pay the consideration as to 70% in cash and 30% in stock. The agreement also includes an earn-out provision of an additional $89 million to be paid in cash and stock based on SunEdison achieving certain performance targets in 2010.

In addition, the agreement calls for employee retention payments of $17 million in cash at closing, and up to $34 million in stock which is subject to SunEdison meeting certain performance criteria and time vesting, the payment of certain transaction expenses and the assumption of net debt.

Morgan Stanley is advising SunEdison on the transaction, which is expected to close by the end of 2009.

Deal Value (US$ Million) 200
Deal Type                Acquisition
Sub-Category             Majority Acquisition
Deal Status              Announced: 2009-10-22

Deal Participants

Target (Company)   SunEdison LLC
Acquirer (Company) MEMC Electronic Materials, Inc.

Deal Rationale

This acquisition will provide a third engine of growth for MEMC. The transaction will enable SunEdison to drive revenue growth for its wafer business while producing a recurring revenue stream from solar-generated electricity.

For full details on Memc Electronic Material (WFR) click here. Memc Electronic Material (WFR) has Short Term PowerRatings of 5. Details on Memc Electronic Material (WFR) Short Term PowerRatings is available at This Link.

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