NEW YORK (AP) American Realty Capital is buying Cole Real Estate for more than $7 billion in cash and stock.
The companies said Wednesday that the deal will create a real estate investment trust with more than 3,700 retail, office and other properties, leased to 600 tenants.
Shareholders of
Cole Real Estate Investments Inc., based in Phoenix, can choose to take $13.82 in cash or 1.0929 shares of American Realty Capital Properties Inc., which closed at $13.35 Tuesday. Based on the 489.8 million shares of Cole that are outstanding, the companies' estimate of $14.59 per share puts the value of the deal at $7.15 billion.
Shareholders of both companies must still approve the sale, which is expected to close in the first half of 2014.
American Realty Capital is based in New York.
