Tesla, Inc. has reached a deal to acquire solar-energy company, SolarCity Corp., the electric-car maker announced Monday, Aug. 1.
The all-stock deal, according to a press release, values SolarCity at about $2.6 billion, with the solar-energy company's stockholders receiving a 0.11 share of Tesla for each share of SolarCity, valuing them at $25.37 per share, based on Friday's (July 29) closing prices.
The deal, according to Tesla, would accelerate the company's transition into a fully integrated, renewable-energy products company, improving "the way that energy is generated, stored and consumed."
"By joining forces, we can operate more efficiently and fully integrate our products, while providing customers with an aesthetically beautiful and simple one-stop solar + storage experience," according to the press release.
SolarCity, which was founded in 2006 and headquartered in San Mateo, has a 45-day "go-shop" period to seek an alternative suitor. The go-shop period runs through Sept. 14.
The deal, which is expected to close in the fourth quarter of 2016, must be approved by a majority of both Tesla's and SolarCity's shareholders, with votes being cast at each shareholders' meeting, according to Tesla.