Tesla acquired SolarCity Corporation for Approximately $2.1 billion (all-stock; 0.110 Tesla share per SolarCity share), a transaction completed in November 2016, structured as all stock.
SolarCity Corporation operates in Energy generation and storage, is based in San Mateo, California, United States. SolarCity was the largest residential solar installer in the United States, financing, installing and servicing rooftop photovoltaic systems for homeowners and businesses. Tesla folded it into a combined energy business so that solar generation, home battery storage (Powerwall) and grid-scale storage (Powerpack) could be sold and installed as one integrated offering. Under the merger, each SolarCity share converted into 0.110 of a Tesla share, and the GAAP fair value of consideration transferred was about $2.1 billion (roughly 11.1 million Tesla shares at $185.04). SolarCity became a wholly owned Tesla subsidiary and its SCTY listing was retired.
Tesla's board concluded that combining Tesla and SolarCity would let the company offer integrated solar generation and energy storage products through a single sales and installation channel, advancing its stated mission of accelerating the shift to sustainable energy.
SolarCity gave Tesla an installed base of residential solar customers and a nationwide installation workforce, the demand-side complement to its Powerwall and Powerpack storage products. Cross-selling solar, storage and vehicles through a shared retail and installation channel; shared engineering on integrated energy hardware. Absorbed into Tesla's energy generation and storage segment
We're pleased to announce that Tesla's acquisition of SolarCity closed this morning.Tesla, Inc., closing announcement (8-K Exhibit 99.1, Nov 21, 2016)
Advisory firms were not disclosed for this transaction.