Plotted by close date where disclosed, otherwise announcement. Select any marker to jump to the deal entry.
Three patterns run through AGNC Investment's acquisitions — what it looks for, how it pays, and how it folds in what it buys.
1 acquisitions — each with the deal value, financing structure, target revenue, and executive commentary where disclosed.
AGNC (then American Capital Agency Corp.) acquired American Capital Mortgage Management, LLC (ACMM), its own external investment manager, from American Capital Asset Management, LLC, a portfolio company of American Capital, Ltd. (ACAS). ACMM was the parent of both American Capital AGNC Management, LLC (AGNC's manager) and American Capital MTGE Management, LLC (manager of the sister REIT MTGE Investment Corp.). The deal converted AGNC into an internally managed residential mortgage REIT and eliminated the external management fee, which totaled $27 million in Q1 2016 (about $108 million annualized). The transaction arose out of ACAS's strategic review, which culminated in a separate agreement for Ares Capital Corporation to acquire ACAS.
We are very excited to be acquiring the investment management function of AGNC and MTGE. This transaction enhances AGNC's overall value proposition for shareholders through the substantial cost savings that will be realized over time from the elimination of the management fee, net of incremental operating costs.Gary Kain — Chief Executive Officer and President, AGNC Investment Corp.
In the end, the ACAS strategic review process provided us the opportunity to take this transformative step to internalize the Company's management function. Importantly, the transaction preserves the continuity of our investment team ... while significantly reducing AGNC's operating cost structure.Prue Larocca — Chair of the Board, AGNC Investment Corp.