Ares Capital to acquire MidCap Financial in $2.6 billion stock‑and‑cash deal
Ares Capital Corporation announced a definitive agreement to purchase MidCap Financial Investment Corporation for an enterprise value of about $2.6 billion. MFIC shareholders will receive $10.88 per fully diluted share, comprising $1.21 in cash and $9.67 in Ares Capital common stock, representing roughly a 30.1% premium to the prior close. The merger is slated to close in early 2027 after required shareholder and regulatory approvals. The companies say the combination will add roughly 200 new portfolio positions, lift the pro‑forma portfolio to over $31 billion and be modestly accretive to Ares Capital’s core earnings and dividend capacity.
Why it matters
Ares Capital says the deal should modestly increase its core earnings per share and help sustain its high dividend payout (the company currently yields about 10%). The transaction also expands the BDC’s portfolio size and diversification, which could improve its long‑term earnings stability.
Key facts
- 1Ares Capital will acquire MFIC for an enterprise value of approximately $2.6 billion. fxnewsgroup.com
- 2MFIC shareholders will receive $10.88 per fully diluted share, consisting of $1.21 cash and $9.67 in Ares Capital stock. fxnewsgroup.com
- 3The per‑share price reflects a premium of about 30.1% to MFIC’s closing price on October 26, 2026. fxnewsgroup.com
- 4MFIC’s preliminary net asset value per share as of September 30, 2026 is roughly $12.86. fxnewsgroup.com
- 5The transaction is expected to close in early 2027, pending shareholder and regulatory approvals. fxnewsgroup.com
- 6Post‑closing, Ares Capital’s pro‑forma portfolio will exceed $31 billion and include more than 800 portfolio companies. stocktitan.net
Summary written by AlphAI AI Desk from 13 of 13 sources. Not investment advice. Figures are as stated by the linked sources.