M&A · Financials · Real Estate Investment Trusts
Ellington Financial Inc. to acquire Arlington Asset Investment Corp.
Announced May 30, 2023 · Closed Dec 14, 2023
Deal value$135M
Premium73.0%To unaffected price
EV / Adj. EBITDA—
ConsiderationAll stock$4.77 per share
Transaction
- Acquirer
- Ellington Financial Inc. (EFC)
- Target
- Arlington Asset Investment Corp. (AAIC)
- Buyer type
- Strategic
- Offer price per share
- $4.77
- Enterprise value
- —
- Status
- Closed Dec 14, 2023
Deal protections
- Break fee (target pays)
- $5.0M · 3.7%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Stifel
- To the target
- Wells Fargo
- Wells Fargo fee
- $2.7M
Sector context · Financials
- Comparable deals
- 77 in the prior 24 months
- Premium
- 73.0% vs. 29.4% sector median
- EV / Adj. EBITDA
- Sector median 24.7x
- Break fee
- 3.7% vs. 3.5% sector median
Timeline
- AnnouncedMay 30, 2023
- Proxy filedNov 3, 2023
- Definitive proxyNov 3, 2023
- Shareholder voteDec 12, 2023
- ClosedDec 14, 2023
Valuation · fairness opinions
Discounted cash flow$3.34$4.32
Discounted cash flow$12.95$16.68
Offer $4.77
Implied value per Arlington Asset Investment Corp. share by analysis, from Wells Fargo · DCF discount rate 13%–17%.