The acquisition would push St. Peters, Mo.
-based MEMC into a new territory of developing solar power projects. SunEdison has been an early player in the business and snagged high-profiled customers such as Duke Energy and Wal-Mart.
SunEdison's customers either buy electricity from projects owned and operated by SunEdison, or hire SunEdison to build and operate their own solar power farms.
Beltsville, Maryland-based SunEdison has completed about 300 solar power projects, totaling about 80 megawatts in generation capacities, in the United States, Europe and Canada.
SunEdison will get to keep its name and operate as a subsidiary of MEMC.
The companies expect to complete the acquisition by the end of this year.
SunEdison has carried out layoffs over the past year as the solar market's growth has slowed thanks to recession and a dramatic cut in government incentives in Spain.
Some of its former executives have gone on to start a solar panel manufacturing business, Sunworks Solar in San Francisco.