MidCap Financial shares jumped 23% in premarket trading following an announcement that the firm would be acquired by Ares Capital for approximately $2.6 billion. Ares will pay $10.88 per share to take over the business development company from Apollo, representing a premium of about 30% over the stock’s recent trading levels.
The payment represents roughly 0.85x the company’s net asset value of $12.86 as of Sept 30, which had been marked down. The deal unites two of the largest names in the private credit sector, with the parent of the buying entity, Ares Management, identifying Apollo as its progenitor.