Ares Capital is purchasing smaller rival American Capital in a cash-and-stock deal valued at $3.4 billion. The deal doesn't include American Capital's mortgage management unit, American Capital Mortgage Management, which will be sold separately to American Capital Agency for $562 million. The deals come about five months after American Capital said it would solicit offers after coming under fire from Elliott Management for its performance and its plan to spin off some assets into a business development company. The hedge fund has a 5.7% stake in the company.
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