Annaly Capital Management Inc. (NYSE: NLY), the largest real estate investment trust that buys mortgage debt, agreed to purchase Hatteras Financial Corp. (NYSE: HTS) for $1.5 billion as the company expands its property business.
Annaly’s offer values Hatteras Financial at $15.85 a share and it will acquire the Winston-Salem, North Carolina-based REIT using a combination of cash and its own shares, the companies said in a statement on Monday. The offer is a premium of about 24 percent to the 60-day volume-weighted average price of Hatteras’ stock and the deal is expected to close in the third quarter.
“This strategic transaction represents a unique and sizeable value-creation opportunity for our shareholders,” Kevin Keyes, chief executive officer and president of New York-based Annaly, said in the statement. “With the acquisition of Hatteras, we significantly grow our diversified portfolio and broaden our investment options, further fortifying Annaly’s position as the market-leading mortgage REIT.” The board of directors of Hatteras unanimously approved the offer.
Mid-market financial service deals have been picking up lately. The Carlyle Group (Nasdaq: CG) has picked up a majority stake in insurance brokers JenCap Holdings and the assets of Wholesale Trading Co-Op Insurance Services and State Street Corp. (NYSE: STT) agreed to buy GE Asset Management.