Updated version 1 - Ares Capital will acquire Apollo’s MFIC for $2.6 billions

Stock Price Dynamic Update

Reuters, October 27 - Ares Capital (ARCC.O) said on Tuesday that it will acquire Apollo-owned MidCap Financial Investment Corp (MFIC.O) in a stock-and-cash deal valued at approximately $2.6 billion, aiming to strengthen its market position in direct lending to middle-market companies.

Details are as follows:

• MidCap shareholders will receive a fully diluted consideration of $10.88 per share, which includes about $1.21 in cash and $9.67 in Ares stock

• The offer price represents a premium of over 30% to MidCap’s closing price on Monday

• MidCap stock soared more than 23%, while Ares shares were largely flat

• Ares Capital is the largest publicly traded business development company and is managed by a subsidiary of alternative investment management firm Ares Management

• MidCap Financial Investment is a closed-end fund externally managed by a subsidiary of asset manager Apollo Global Management APO.N

• The two companies said the deal is expected to be completed in the first half of 2027 and will allow Ares to acquire MidCap’s “highly attractive” yield senior secured investments and “modestly” boost core earnings

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