Ares Capital Buys Competitor in $3.3 Billion Deal
The acquisition will make Ares Capital the largest publicly traded business development company.
Ares Capital Corp. has agreed to buy competitor American Capital for $3.3 billion in cash and stock, the companies announced Monday. The deal will boost Ares Capital's assets to more than $31 billion, making it the largest publicly traded business development company in the United States.
The acquisition is expected to close in the third quarter, pending regulatory and shareholder approvals. Ares Capital, a subsidiary of Ares Management LP, focuses on providing debt and equity capital to middle-market companies.
American Capital, which is externally managed by Apollo Global Management, also specializes in providing capital to midsize businesses. The combination is expected to create significant synergies and enhance Ares Capital's scale and diversification.