Tesla has made an offer to acquire SolarCity, the solar energy company Elon Musk cofounded nine years ago.
In a blog post announcing the deal, Tesla says it has offered to buy the company for “approximately 21% to 30% over the closing price of SolarCity’s shares.” SolarCity closed the day with a market cap of $2.14 billion — a 30 percent premium could mean an all-stock purchase price of $2.78 billion, or from $26.50 to $28.50 per share.
SolarCity’s stock jumped by more than 22 percent following the announcement, while Tesla’s stock fell more than eight percent.
While outlining the perks of its offer, Tesla cited the two companies’ abilities to share customers and skills, and also said the acquisition would create “the world’s only vertically integrated energy company offering end-to-end clean energy products to our customers.”
Here’s the Tesla Board’s full public offer letter to SolarCity CEO and cofounder Lyndon Rive: