Sculptor Capital Management Inc. (SCU, -0.84%) stock experienced a significant surge of 15.2% during premarket trades on Monday. This sudden increase came after the announcement that the alternative asset manager has agreed to be acquired by Rithm Capital Corp. (RITM, -0.21%) in a deal valued at approximately $639 million.
Uniting Two Powerhouses
Rithm Capital Corp. has agreed to pay a generous 18% premium over Sculptor's closing price on Friday and an impressive 31% premium over the unaffected share price of $8.50, observed on November 17th. By doing so, they demonstrated their belief in the value and potential of Sculptor Capital Management.
A Lucrative Option for Unitholders
Upon completion of the acquisition, Sculptor unitholders will have the opportunity to roll their partnership units into partnership units of one or more Rithm subsidiaries. This option enables unitholders to maintain their investment within a new and exciting business paradigm.
A Strategic Move with Long-Term Benefits
Expected to be accretive to Rithm earnings by 2025, this strategic acquisition is set to unlock significant potential for both companies involved. By combining Sculptor's impressive $34 billion assets under management with Rithm's formidable $7 billion of permanent equity capital and over $30 billion balance sheet, the newly-formed entity will undoubtedly establish itself as a world-class asset management business.
Commenting on the deal, Rithm Capital CEO Michael Nierenberg expressed confidence in the future success of the venture. "Sculptor's incredible assets under management, paired with Rithm's substantial permanent equity capital and impressive balance sheet, solidifies our position as an unparalleled asset management powerhouse," Nierenberg remarked.
Closing the Deal
Pending regulatory approvals and customary closing conditions, the acquisition is expected to be finalized during the fourth quarter.