First Wind is operating or building wind projects with a combined capacity of around 1.3GW in the US. TerraForm will take on 521MW of the completed projects, while Sun Edison will take on the remaining 779MW.
The acquisition increases the capacity of TerraForm Power's portfolio by more than 50%. Sun Edison claimed that with the acquisition it will become the largest renewable energy developer in the world.
As a result of the purchase, Sun Edison raised its 2015 project installation guidance from 1.6-1.8GW to 2.1-2.3GW. Terraform - an indirect subsidiary of Sun Edison, which is partly listed on the NASDAQ - increased its 2015 dividend guidance by 44% to $1.30 per share.
The companies will pay $1.9 billion upfront, with the remaining $510 million payable when certain performance targets are met. Sun Edison and Terraform will pay a total of $1.5 billion and $862 million respectively.
The transaction is expected to close during the first quarter of 2015, subject to the "usual and customary conditions and regulatory approvals", First Wind said.