Ares Agrees To Buy American Capital In $3.4 Billion Deal

By Ciara LinnaneMarketsMarketWatch Pulse

Private-equity firm Ares Capital Corp. said Monday it has agreed to acquire American Capital Ltd. in a deal valued at $3.4 billion. Separately, American Capital announced the sale of American Capital Mortgage Management LlC to American Capital Agency Corp. in a deal valued at $562 million. "This transaction enhances Ares Capital's position as the leading business development company in the United States and a leading direct lender to middle market companies," Ares said in a statement. Ares expects the deal to immediately boost core earnings per share, and to be accretive to net asset value per share between the first and second years after closing. Shares of both companies were halted in premarket trade.

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