Tesla has reached a deal to acquire SolarCity, putting it another step ahead in its quest to acquire the solar firm. The deal now sets the stage for a campaign to persuade shareholders to back the deal. The stock deal is worth $2.6 billion, thus valuing the solar firm at $25.37 per share or 5% below its Friday close.

Tesla, SolarCity

A Go-shop provision for SolarCity

In a filing on Monday, the EV firm said SolarCity’s special committee of “independent and disinterested” board members assessed the proposal. As per the terms of the deal, SolarCity will get a 45-day window to solicit offers from other potential buyers. In the first full year after the deal is concluded, the EV firm says it expects $150 million in costs.

“We also expect to save customers money by lowing hardware costs, reducing installation costs, improving our manufacturing efficiency and reducing our customer acquisition costs,” Tesla said in a statement.

Even though Tesla CEO Elon Musk is the largest shareholder of both companies, a merger agreement was not certain as SolarCity formed a special committee to review Tesla’s offer without being effected by Musk and other executives close to him.

Following the initial apprehension after the automaker announced its offer on June 21, shareholders have gradually found the deal with SolarCity not too distasteful. Tesla shares, which dropped below $190 after the deal, have recouped their value now and ended trading at $234.79 on Friday. SolarCity closed at $26.70 on Friday.

Merger is part of Tesla CEO’s plan

The main part of Musk’s strategy is combining the EV firm with the solar panel installer. In July, Musk disclosed his master plan “part duex” that calls for the combined company to offer consumers a single source of hardware to power a low-carbon lifestyle.

Musk contended that the merger will permit the combined entity to reach customers more effectively by installing solar panels on their roof, sending power to Tesla cars in their garages and Tesla storage batteries in their homes. Batteries from Tesla’s $5 billion Gigafactory outside Sparks, Nevada will be central to the combined enterprises.

Apart from Musk, many other Tesla and SolarCity executives have excluded themselves from voting on the deal, including Musk’s cousins, Lyndon Rive, who is also CEO of SolarCity, and Peter Rive, a SolarCity board member.

In premarket trading today, Tesla shares were in the green. Year to date, the stock is down more than 1%, while in the last year, it is down almost 12%.