Spirit Realty Capital Inc. recently announced that it has agreed to be acquired by Realty Income Corp. in a deal worth $9.3 billion. This agreement has caused Spirit Realty’s stock to rise by 7% in premarket trading.
Realty Income will pay 0.762 newly-issued common shares for each Spirit common share. Based on the closing stock prices on Friday, this purchase price values Spirit Realty at $37.34 per share, representing a 15.4% premium over its closing price.
Positive Impact for Realty Income
This acquisition is expected to have a positive impact on Realty Income’s annualized adjusted funds from operations (AFFO) per share. The company forecasts more than a 2.5% accretion to its AFFO per share.
Combined Company Ownership
Upon completion of the deal, Realty Income shareholders will own 87% of the combined company, which will have a total value of $63 billion. On the other hand, Spirit Realty shareholders will hold the remaining 13%.
The two real estate companies anticipate the deal to close during the first quarter.
This exciting acquisition represents a significant move in the real estate investment industry and highlights the growth potential for both companies involved.