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Ares Capital Buys American Capital In $3.4B Deal


Here’s one deal that isn’t busted—Ares Capital will buy out its smaller rival American Capital in a deal valued at $3.4B, allowing Ares to grab a larger share of the lending to midsized firms market as banks back away.

The takeover does not include American’s mortgage unit, but together the two firms will have combined investments of more than $13B, Reuters reports. Activist investor Elliott Management has been pushing American to make a move like this for some time, and the firm says it strongly approves of the merger—the firm owns over 14% of American Capital.

Ares will pay $6.41 per share along with 0.483 of its shares for each share of American Capital. [Reuters]