Sunflower Bank, the solar panel installer that filed for Chapter 11 bankruptcy protection last year, will be acquiring a majority stake in SolarCity.
The Sunflower Group, which includes Sunflower Capital, the hedge fund, will own a majority share of SolarCity, according to a filing with the U.S. Securities and Exchange Commission.
Sunflower Capital will be a majority shareholder in Solar City, according the filing.
“Sunflower’s board has reviewed the acquisition to see if it makes sense to acquire a majority interest in a company that is at the center of an evolving energy transition,” Sunflower’s chief executive officer and co-founder Peter Vos said in a statement.
SolarCity’s solar portfolio has been steadily expanding since the company was founded in 2010, with more than $1 billion invested since it began operations in 2015.
The company recently unveiled plans to add a third battery to its fleet, an upgrade to its panels and more energy storage.
Shares of Sunflower were up 0.9% in afternoon trading.
Vos, the former head of Sunpower, SolarCity and Tesla, also announced that he and his wife, Kim, will invest $500 million in Sunflower.
They will also purchase a majority ownership stake in Sunflowers stock, the company said in the filing, which is not disclosed.
Sunflowers, a company with operations in Florida, Illinois and New York, will become the largest solar company in the U, according its filing.
The group plans to create “a fully integrated, diversified portfolio of products, services and technologies” including solar, battery, energy storage, and residential, commercial, and industrial power.
CEO Sunflower Scott Johnson said the new company will combine the two companies’ core strengths.
The merger will give the company greater flexibility in managing its energy portfolio and aligns with Sunflows goals of being a leading global provider of residential, retail, and commercial solar,” Johnson said in an interview with Bloomberg News.
It’s not clear how much Sunflowing’s new owners will receive in return for the transaction, which also includes the Sunflains former stake in the company.
As part of the deal, Sunflights new board will have the option of selling the existing Sunflames share in SunFlowers for cash or voting in favor of the new Sunflares shareholders.
Johnson said that Sunflaws board is in discussions with other potential buyers.
SolarCity announced last year that it plans to spend $3.2 billion to expand its footprint.
The transaction is expected to close by the end of the year, according analysts.
In an interview last month, Sunflower CEO Vos told Bloomberg that the company’s solar business is in decline and that it is looking for additional funding.
During the past 12 months, SunFlower’s solar power business lost $400 million, according a filing filed last month with the SEC.
Other solar companies have been hit hard by falling solar panel prices and the ongoing cost of installing and maintaining a battery to provide energy storage to homes.