Ares Capital to buy Apollo's MFIC in $2.6 billion deal
MFIC•Ares Capital said it will buy MidCap Financial Investment Corp in a deal valued at about $2.6 billion in stock and cash. MidCap shareholders will receive $10.88 per share, a premium of more than 30% to Monday's close, and the deal is expected to close in the first half of 2027.
1. Deal terms
Ares Capital said it will pay $10.88 per fully diluted share for MidCap Financial Investment Corp, comprising about $1.21 in cash and $9.67 in Ares stock. MidCap shares jumped over 23%, while Ares shares were trading flat.
2. Strategic rationale
The deal will give Ares access to MidCap's senior secured investments with “compelling” yields and is expected to “modestly” add to core earnings, the companies said. Ares Capital is managed by a subsidiary of Ares Management, while MidCap is externally managed by a subsidiary of Apollo Global Management.
