Spirit Realty Capital (NYSE:SRC) stock is taking off on Monday as investors react to a $9.3 billion acquisition deal with Realty Income (NYSE:O).
Investors will note that the acquisition agreement between these two companies will result in Realty Income acquiring Spirit Realty Capital in an all-stock transaction. The deal will create a combined company with an enterprise value of roughly $63 billion and doesn’t require any additional funding.
The acquisition agreement will see shareholders of SRC stock paid 0.762 shares of newly issued O stock for each share of SRC that they own. That will result in SRC shareholders owning 13% of the combined company while current O shareholders will own the remaining 87%.
Sumit Roy, President and CEO of Realty Income, said the following about the merger plans:
“We expect that this transaction will create immediate and meaningful earnings accretion, while enhancing the diversification and depth of our high-quality real estate portfolio. Spirit’s assets are highly complementary to our existing portfolio, extending our investments in industries that have proven to generate durable cash flows over several economic cycles.”
Investors will note the acquisition deal is set to close in the first quarter of 2024.
How This Affects SRC Stock
Investors in SRC stock are reacting well to today’s news with heavy trading of the shares. This has more than 5 million shares changing hands as of this writing. That’s already well above the company’s daily average trading volume of about 1 million shares.
SRC stock is up 8.1% as of Monday morning. The stock is also currently down 11.9% year-to-date (YTD).
Investors looking for even more of the most recent stock market stories will want to keep reading!
We’re offering insight into all of the hottest stock market news for Monday! A few examples include what’s happening with shares of SoFi (NASDAQ:SOFI), Nio (NYSE:NIO) and Intuitive Machines (NASDAQ:LUNR) stock today. All of that news is available at the following links!
More Monday Stock Market News
- Student Loans Are Taking SOFI Stock Higher
- NIO Stock: Nio Signs Agreement With Baolong Automotive
- Dear LUNR Stock Fans, Mark Your Calendars for Jan. 12
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
