VSLR - 1 Thing Investors Should Watch as SunRun Buys Vivint Solar
With its recently announced acquisition of Vivint Solar (NYSE: VSLR), SunRun (NASDAQ: RUN) has set a course to become the largest vertically integrated installer and owner of solar generation in the US. But scale alone does not guarantee shareholder value. To succeed, SunRun will have to prove that adding scale also makes the company more efficient.
SunRun installs and finances residential solar systems in the US
SunRun started as a pure-play financial services provider for residential solar installers in 2007. In that model, SunRun provided software tools and access to financing to residential solar installers across many states in the US. Solar installers became a "channel" that allowed SunRun to achieve scale quickly.