RTTNews | Apr 29, 2021 10:07AM EDT

10:06 Thursday, April 29, 2021 (RTTNews.com) - Shares of real estate operating company VEREIT, Inc. (VER) are rising more than 20% Thursday morning on the news of it being bought by REIT, Realty Income Corporation (O) in an all-stock deal.

The combined company will have an enterprise value of about $50 billion.

As per the deal, VEREIT shareholders will get 0.705 shares of Realty Income stock for each VEREIT stock they own.

Upon closing the deal, the companies plan to spin-off their office properties into a new, self-managed, publicly traded REIT (SpinCo).

Realty Income and former VEREIT shareholders are expected to own about 70% and 30%, respectively, of both Realty Income and SpinCo.

"Together, our company will enjoy increased size, scale, and diversification, continuing to distance Realty Income as the leader in the net lease industry. VEREIT's real estate portfolio is highly complementary to ours, which we expect to further enhance the consistency and durability of our cash flows," said Sumit Roy, President and Chief Executive Officer of Realty Income.

The deal is expected to close during the fourth quarter of 2021.

VER is currently trading at $49.62.

Read the original article on RTTNews ( https://www.rttnews.com/3189907/stock-alert-vereit-jumps-20-on-news-of-acquisiton.aspx)

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