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NEW YORK (TheStreet) -- Shares of American Capital (ACAS) are up by 0.38% to $15.68 on heavy trading volume on Monday afternoon, after Ares Capital (ARCC) agreed to buy the company in a deal valued at $3.4 billion.

Ares will pay $14.95 per share in cash and stock for Bethesda, MD-based American Capital.

The deal excludes American Capital Mortgage Management, which is being sold separately to American Capital Agency (AGNC) for $562 million.

New York-based Ares expects the deal to immediately boost its core earnings per share and to be accretive to net asset value per share between the first and second full years after closing.

American Capital is a global asset manager and private equity firm.

Shares of Ares Capital are slumping by 3.16% to $14.71 on heavy trading volume this afternoon. Roughly 5.12 million of the company's shares changed hands so far today compared to its average volume of 991,496 shares per day.

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About 11.07 million of American Capital's shares were traded by mid-afternoon today vs. its average volume of 1.45 million shares per day.

Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on American Capital stock.

The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: ACAS

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