Today, Ares Commercial Real Estate Corporation (ACRE) said that it had closed a previously announced purchase of Alliant Capital LLC. The deal was priced around USD61 million through a combination of cash and shares. The payment was made in cash was valued at USD52.9 million and 588,235 shares of ACRE stock valued USD7.4 million. This was based on the closing price of ACRE's common stock last August 30. The trading had ACRE's stock close at USD12.65 a piece.
Alliant Capital LLC operates as a financial services company. It is focused on originating and servicing multi-family loans for Government and Government Sponsored Entities through the Fannie Mae Delegated Underwriting and Servicing program.
Todd Schuster, Co-CEO of Ares Commercial Real Estate Corporation, said, "We expect that the closing of this transaction will benefit our shareholders as it greatly strengthens our direct origination platform while providing further depth to our company through the addition of Alliant's experienced management team and significant servicing operation. Additionally, this accretive transaction should increase book value and provide an opportunity to add meaningful non-interest income which should enhance earnings and dividends in a capital efficient manner."
Alliant Capital LLC would change its name to ACRE Capital LLC, and would be led by Ed Hurley. Two warehouse line facilities would be retained as a part of the deal. It would also retain USD180 million in total available funds to finance multi-family loan origination activities. The company would become a direct subsidiary of ACRE Capital Holdings LLC.
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