Ares Capital Agrees to Acquire MidCap Financial for $2.6 Billion
Ares Capital Corporation and MidCap Financial Investment Corporation entered into a definitive merger agreement under which Ares Capital will acquire MFIC in a stock-and-cash transaction valued at approximately $2.6 billion in enterprise value. MFIC stockholders are expected to receive $10.88 per fully diluted share, consisting of approximately $1.21 in cash and $9.67 in Ares Capital common stock. Ares Capital may issue up to approximately 41 million shares; existing ARCC and MFIC stockholders are expected to own approximately 95% and 5% of the combined company, respectively, before the impact of MFIC's special dividend, with closing expected in the first half of 2027 subject to approvals.
Reuters and BusinessWire directly report that Ares Capital Corporation and MidCap Financial Investment Corporation entered into a definitive stock-and-cash merger agreement valued at approximately $2.6 billion in enterprise value. The disclosed consideration, potential issuance of up to approximately 41 million ARCC shares, ownership split, financing, and expected closing timeline make this a material forward-looking merger_acquisition development rather than a financing or passive investment. Importance is high because the transaction materially changes the scale and ownership structure of both listed companies, while surprise is meaningful but not maximal because the supplied evidence does not establish whether the deal was previously rumored. The timestamp is estimated from the Reuters wire timestamp because the exact announcement time is not explicitly stated. ARCC, MFIC, and ARES are approved because they are directly involved or directly exposed through the transaction; indirect competitive effects for GBDC, FSK, and OWL are too speculative for conservative stakeholder approval.
ARES CAPITAL CORPORATION AGREES TO ACQUIRE MIDCAP FINANCIAL INVESTMENT CORPORATION
ARES CAPITAL CORP - TO BUY MIDCAP FINANCIAL INVESTMENT CORP FOR $2.60 BILLION ENTERPRISE VALUE
ARES CAPITAL CORP - MFIC STOCKHOLDERS TO RECEIVE $10.88 PER SHARE INCLUDING $1.21 CASH AND $9.67 IN ARES CAPITAL STOCK
ARES CAPITAL CORP - MAY ISSUE UP TO 41 MILLION SHARES TO MFIC STOCKHOLDERS, SUBJECT TO ADJUSTMENT
ARES CAPITAL CORP - CO'S STOCKHOLDERS TO OWN 95%, MFIC STOCKHOLDERS 5% OF COMBINED COMPANY POST-DEAL
Ares Capital NASDAQ:ARCC said it will buy Apollo's MidCap Financial Investment NASDAQ:MFIC in a stock-and-cash deal with an enterprise value of about $2.6 billion, strengthening its foothold in direct lending to mid-sized businesses.