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Ares Capital to buy Apollo's MFIC in $2.6 billion deal

By Reuters News

Oct 27 (Reuters) - Ares Capital ARCC.O said on Tuesday it will buy Apollo's MidCap Financial Investment Corp MFIC.O in a deal valued at about $2.6 billion in stock and cash, strengthening its presence in direct lending to mid-sized businesses.


Here are some details:


• MidCap shareholders will receive $10.88 per fully diluted share, comprising about $1.21 in cash and $9.67 in Ares stock

• Offer represents a premium of more than 30% to MidCap stock's Monday close

• MidCap shares jumped over 23%, while Ares was trading flat

• 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, expected to close in the first half of 2027, will give Ares access to MidCap's senior secured investments with "compelling" yields, and "modestly" add to core earnings, the companies said

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