Shares of real estate investment trust Arlington Asset Investment Corp. (NYSE:AAIC) are skyrocketing today after it agreed to be acquired by Ellington Financial (NYSE:EFC). The former is a real estate investment trust with a focus on mortgage-related and other assets.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
The acquisition is expected to offer increased scale and better access to capital markets for EFC while also driving earnings accretion and long-term growth for the company.
Further, each Arlington share will be converted into 0.3619 Ellington shares. Arlington investors also stand to receive $0.09 per share in cash and the transaction points to a $4.77 offer price for each Arlington share.
The transaction is expected to close in the fourth quarter of this year and upon closure, Ellington investors are expected to own about 85% of the combined entity.
Overall, the Street has a $13.95 consensus price target on EFC alongside a Strong Buy consensus rating. AAIC shares have already skyrocketed nearly 52% at the time of writing.
Read full Disclosure