SMG Has New Owner
Ares Capital Corporation and American Capital, Ltd., parent company of SMG, announced they have entered into a merger agreement under which Ares Capital will acquire American Capital for $3.4 billion.
According to a joint statement, American Capital shareholders will receive $3.43 billion or $14.95 per share in a cash and stock transaction. Elliot Management owns 14.4 percent of American Capital and is on board with the deal. In a separate transaction, American Capital Mortgage Management will be sold to American Capital Agency Corp., for $562 million.
Shareholders of Ares Capital will own nearly 74 percent of the combined entity after the sale is completed. Total investments of the merged companies is estimated at $13 billion at fair value as of March 31. Current Ares Capital officers and directors will stay in their present roles.
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