Ares Capital agrees to acquire MidCap Financial in $2.6 billion stock-and-cash deal
On October 26, 2026, Ares Capital signed a merger agreement to acquire MidCap Financial Investment Corporation (MFIC). MFIC stockholders would receive $1.21 per share in cash, paid by Ares Capital's investment adviser, plus Ares Capital stock, for total consideration of $10.88 per fully diluted MFIC share. Ares Capital says the deal is expected to be modestly accretive to its core earnings per share, but the closing depends on MFIC stockholder approval and other conditions, with a close expected in the first half of 2027.
Key points
- Total consideration of $10.88 per MFIC share, including about $1.21 in cash and about $9.67 in Ares Capital stock, a 30.1% premium to MFIC's October 26, 2026 closing price
- Stock portion depends on Ares Capital's price relative to its net asset value; the press release says Ares Capital may issue up to about 41 million shares
- MFIC must pay a $31,360,000 termination fee in certain cases; no termination fee is payable by Ares Capital
- Closing expected in the first half of 2027; Wells Fargo has agreed to provide $750 million of additional secured financing to support the deal
The filing
Written by AI on Nov 9, 2026, 8:36 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on October 27, 2026.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.