MidCap Financial surges as Ares Capital agrees to buy company in $2.6 billion deal
ARCC•MidCap Financial shares rose 19.6% to $10 premarket after Ares Capital agreed to buy the Apollo-managed lender in a deal valued at about $2.6 billion. MidCap shareholders are set to receive $10.88 per share in cash and Ares Capital stock, subject to adjustments for a special dividend.
1. Deal terms
Ares Capital agreed to buy the Apollo-managed U.S. middle-market business lender for about $2.6 billion in enterprise value. MidCap Financial shareholders are set to receive $10.88 per share in cash and Ares Capital stock, subject to adjustments for a special dividend MidCap expects to pay before the deal closes. The offer represents a roughly 30.1% premium to MidCap Financial’s October 26 close.
2. Shares rise
MidCap Financial shares rose 19.6% to $10 premarket. Ares Capital said the deal would expand its lending business, diversify its portfolio and boost earnings.
