VER - Realty Income to acquire Vereit then spin off office properties in new REIT

Realty Income (O) agrees to acquire Vereit (VER) in an all stock transaction then plans to spin off their office properties into a new REIT — moves that it says will increase its size, scale, and diversification.The transactions are expected to strengthen Realty Income's cash flow durability and provide "significant financial synergies," particularly through accretive debt refinancing opportunities.Vereit shareholders will get 0.705 shares of Realty Income stock for each VER share they own. Based on Wednesday's close, the transaction values VER at ~$44.84 per share, or about an 8.6% premium to VER's closing price of $41.26.Immediately after that transaction closes, the companies expect to spin off substantially all of the office properties of both companies into a new. self-managed, publicly traded REIT.The transactions are expected to add more than 10% to Realty Income's adjusted FFO per share in the first year.Realty Income's growth strategy will stay focused primarily on high-quality,

For further details see:

Realty Income to acquire Vereit then spin off office properties in new REIT