- REUTERS/Bobby Yip
Tesla is buying the solar-panel company SolarCity for $2.6 billion, and two banks are on the deal.
The boutique firm Evercore was Tesla’s sole financial adviser, while Lazard was the sole adviser to SolarCity.
Evercore’s team included its founder and executive chairman, Roger Altman, as well as Stuart Francis, Courtney McBean, Preston Comey, Patricia Shaw, Anand Sankaralingam, Connor Landy, Marshall Watkins, and Jessica Yi.
Over at Lazard, George Bilicic, head of global power and energy banking, and Jonathan Mir, head of North American power and utilities banking, led the firm’s efforts.
Evercore will earn an estimated $15 million to $20 million in buy-side advisory fees, according to the consultant Freeman & Co., while Lazard will earn between $20 million and $25 million.
The deal combines two of entrepreneur Elon Musk’s public firms to create what he has called “the world’s only vertically integrated sustainable energy company.”
Musk announced the deal in a blog post after making an all-stock offer for SolarCity on June 21. It values each share of SolarCity at $25.37, according to the post. As of the close on Friday, SolarCity shares were trading at $26.70.
The deal has split opinion on Wall Street. Short seller Jim Chanos of Kynikos Associates described the buyout as a “brazen” bailout and “shameful example of corporate governance at its worst.”
SolarCity now has 45 days, ending September 14, to solicit counteroffers.