Ares Capital to buy Apollo's MidCap Financial Investment in $2.6 billion deal
Ares Capital to buy Apollo's MidCap Financial Investment in $2.6 billion deal Oct 27 (Reuters) - Ares Capital ARCC.O said on Tuesday it will buy Apollo's MidCap Financial Investment MFIC.O in a stock-and-cash deal with an enterprise value of about $2.6 billion, strengthening its foothold in direct lending to mid-sized businesses.
Here are some details:
Transaction values MidCap Financial Investment at a premium of over 30% to its Monday close of $8.36
Ares Capital's shares were down 2.4% in premarket trading, while MidCap jumped 18%
MidCap shareholders will receive $10.88 per fully diluted share, comprising about $1.21 in cash and $9.67 in Ares Capital stock
Ares Capital is the largest publicly traded business development company, managed by a subsidiary of alternative investment manager Ares Management
MidCap Financial Investment is a closed-end fund externally managed by a subsidiary of asset manager Apollo Global Management APO.N
Deal will give Ares Capital access to MidCap's senior secured investments with "compelling" yields, and be "modestly" accretive to core earnings, the companies said
(Reporting by Utkarsh Shetti in Bengaluru; Editing by Vijay Kishore)
((UtkarshUmesh.Shetti@thomsonreuters.com;))