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Ares Capital to Acquire Apollo-Affiliated MidCap Financial Investment in $2.6 Billion Stock-and-Cash Deal

By Market Flux··1 min read
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MidCap Financial Investment Corporation $MFIC

$10.27+22.86%as of publication

5D Change
+24.27%
Notional
$79.64M

Ares Capital Corporation agreed on October 26, 2026 to acquire MidCap Financial Investment Corporation in a stock-and-cash transaction valued at approximately $2.6 billion in total enterprise value, including debt. Under the terms of the merger agreement, MFIC shareholders will receive $10.88 per fully diluted share, consisting of $1.21 in cash and $9.67 in Ares Capital common stock. MFIC is managed by an affiliate of Apollo Global Management.

MFIC shares surged roughly 20 to 23 percent in premarket and early trading on the news, making it one of the largest single-day movers in the market that session. Ares Capital shares fell approximately 1.9 percent in response. The deal is expected to further strengthen Ares Capital's position as the largest publicly traded business development company.

Law firm Brodsky and Smith announced the same day that it is investigating the MFIC board of directors for potential breaches of fiduciary duty and other violations of federal and state law in connection with the sale, a standard step in large acquisition transactions that can precede litigation or demands for additional shareholder disclosures.

© AI-generated summary is provided by Market Flux

Sources

  1. ReutersAres Capital to buy Apollo's MidCap Financial Investment in $2.6 billion deal
  2. Business WireAres Capital Corporation Agrees to Acquire MidCap Financial Investment Corporation
  3. InvestingForm 8K MidCap Financial Investment Corp For: 27 October
  4. BriefingcomGapping up: $MFIC +20.6% $CLS +13.9% $JBLU +11.3% $INIO +9.4% $SOFI +8.5% Gapping down: $LYCA -9.8% $XYL -7.5% $HSBC -6.6% $WHR -6.1%
  5. NasdaqAres Capital Corporation to Acquire MidCap Financial Investment Corporation in $2.6 billion Transaction
  6. ZerohedgePremarket movers Tesla is leading gains among Mag 7 stocks as the electric-car maker is on track to outperform the cohort for a second consecutive session: Tesla (TSLA) +1.1%, Nvidia (NVDA) +0.6%, Alphabet (GOOGL) +0.4%, Amazon (AMZN) +0.3%, Apple (AAPL) -0.3%, Meta Platforms (META) -0.4%, Microsoft (MSFT) -0.6% Amkor Technology (AMKR) gains 3.7% after the semiconductor manufacturing company’s results were seen as positive on several metrics, including gross margins. Broadcom Inc. (AVGO) rises 2.4% after D.A. Davidson upgraded the chipmaker to buy from neutral, seeing potential upside related to Anthropic. Cadence Design Systems (CDNS) is up 2.1% after the maker of electronic design automation software raised its full-year forecast and reported third-quarter results that beat expectations. Hilton Worldwide (HLT) falls 4.8% after the hotel operator gave a forecast for adjusted earnings per share for the fourth quarter that fell short of the average analyst estimate. JetBlue (JBLU) rallies 7.2% after the carrier reiterated its expectation to deliver at least $1 in earnings per share and positive free cash flow in 2028. The shares closed Monday at a record low as the airline grapples with cash burn and elevated oil prices. MidCap Financial Investment (MFIC) jumps 20% after Ares Capital agreed to acquire it in a stock-and-cash deal with total enterprise value of ~$2.6b, paying $10.88 per fully diluted MFIC share. Ares Capital (ARCC) falls 1.9%. Moderna (MRNA) falls 3.2% after William Blair downgraded the drugmaker to market perform from outperform, citing valuation concerns, following a run-up in the stock. UPS (UPS) gains 2% after the courier raised its financial guidance for the year, suggesting it expects to benefit from high prices and resilient demand through the holiday season. Whirlpool Corp. (WHR) slides 7.9% after the appliance maker cut its revenue forecast for the full year to below Wall Street’s consensus.
  7. OpenOutcrier$MFIC (+23.0% pre) Ares Capital to acquire MidCap Financial from Apollo for $2.6bn
  8. TheflynewsMorning Movers: Royal Caribbean and Johnson Controls rise after earnings $BA $FCX $UPS $RCL $CLS $JBLU $CDNS $HSBC $KO $WSO $PYPL $WHR $MFIC $JCI $GLW
Show 2 more
  1. Newsfile CorpSHAREHOLDER NOTICE: Brodsky & Smith Announces an Investigation of MidCap Financial Investment Corporation (MFIC)
  2. BarronsonlineAres Capital is purchasing MidCap Financial Investment, which is run by an affiliate of Apollo Global Management. for $2.6 billion including debt.