Ares Capital to Acquire MidCap Financial in $2.6B Stock-and-Cash Deal
ARCC is trading near its 52-week low of $17.4 (4.3% above the low).
Summary
Ares Capital agreed to acquire MidCap Financial Investment Corporation for about $2.6 billion in cash and stock, paying MFIC holders roughly $10.88 per share — a 30.1% premium to the prior close. The deal is expected to close in the first half of 2027 pending MFIC shareholder and regulatory approvals.
Key Events · M&A and Partnerships · ARCC
-
Ares Capital to Buy MidCap Financial
A definitive merger agreement signed October 26, 2026 calls for ARCC to acquire MFIC at $10.88 per fully diluted share — $1.21 in cash plus about $9.67 in ARCC stock — for total enterprise value of approximately $2.6 billion.
-
30.1% Premium to MFIC Holders
The $10.88 consideration is a 30.1% premium to MFIC's October 26, 2026 closing price and a 25.8% premium to its 30-day VWAP; MFIC's preliminary September 30, 2026 NAV estimate is about $12.86 per share.
-
Up to ~41 Million New ARCC Shares
ARCC may issue up to approximately 41 million shares, though the count is expected to be lower after the exchange-ratio adjustment for MFIC's pre-closing special dividend; existing ARCC holders are expected to own about 95% and MFIC holders about 5% of the combined company.
-
Approvals and First-Half 2027 Close
Closing is targeted for the first half of 2027 and requires MFIC stockholder approval, HSR clearance, effectiveness of the Form N-14 and other customary conditions; Apollo affiliates holding 5.2% of MFIC have signed voting and support agreements.
Analysis · ARCC · Unknown
Ares Capital, already the largest publicly traded BDC, is buying rival BDC MidCap Financial for about $2.6 billion in total enterprise value — roughly $10.88 per MFIC share, split between $1.21 in cash funded by an Ares Management subsidiary and about $9.67 in ARCC stock. The price is a 30.1% premium to MFIC's October 26 close, so MFIC holders get a real bump while ARCC holders absorb roughly 41 million new shares at most (about 5% of the combined company). Management expects the deal to be modestly accretive to core earnings and supportive of the dividend, and it pushes the pro forma portfolio past 800 companies and $31 billion of investments. The main risks are execution: MFIC stockholder approval, HSR and other regulatory clearance, and a first-half 2027 closing target. The $31.36 million termination fee runs only one way — MFIC pays ARCC, not the reverse.
How filings like this one have moved
In the 30 days to Oct 27, 2026, 45.6% of the 241 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.73%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, ARCC was trading at $18.15 on NASDAQ in the Unknown sector, with a market capitalization of approximately $13.4B. The 52-week trading range was $17.40 to $21.14. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.