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SolarCity accepts Tesla's $2.6 billion offer

Staff Writer |
SolarCity agreed to Tesla Motors' $2.6 billion offer to buy the solar panel installer, the companies said.

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Tesla's stock swap offer valued SolarCity at $25.37 a share, or $200 million less than the initial proposal that Musk outlined in June, before advisers to the companies had done due diligence.

Tesla's offer represents about half of SolarCity's value a year ago. Elon Musk, chairman of both Tesla and SolarCity, said a capital increase could be a "low to mid single digit" percentage of Tesla's market capitalization, which is about $34 billion.

Musk and Tesla Chief Financial Officer Jason Wheeler said the two companies could save at least $150 million a year by combining sales forces, and sending one truck to a home to install solar panels, a Tesla energy storage system and a recharging system for a Tesla car.

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