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Alternative Assets  + Direct Investment  + M&As  + Real Estate  | 
Ellington Financial to Buy Great Ajax for Nearly $173M

Ellington Financial to Buy Great Ajax for Nearly $173M

Ellington Financial Inc., a real estate investment trust (REIT), has agreed to purchase Great Ajax Corp., another REIT, for nearly $173 million in an all-stock deal.

Ellington will pay $7.33 per share, or approximately a 19% premium from the closing price of Great Ajax on June 30.

Each Great Ajax share will be converted into 0.5308 Ellington Financial shares, or approximately 12.5 million shares.

Ellington Financial shareholders will own approximately 84% of the combined company’s stock, while Great Ajax stockholders will own the rest. In addition, Ellington Financial will assume Great Ajax’s outstanding senior unsecured notes and convertible senior notes.

The combined company will operate as Ellington Financial Inc. Ellington Financial Management LLC, an affiliate of Ellington Management Group LLC, will continue to manage the combined company.

“We are pleased to combine our investment portfolios and create a company that we believe will be well positioned for growth and value creation,” comments Lawrence Mendelsohn, Great Ajax’s chairman and CEO.

The deal is expected to close by the end of the year.

Connect

Inside The Story

Ellington Financial Inc.Great Ajax

About Joe Palmisano

Joe Palmisano is Editorial Director for Connect Money, where he brings nearly three decades experience of market insights as a financial journalist, analyst and senior portfolio manager for leading financial publications, advisory firms, and hedge funds. In his role as Editorial Director, Joe is responsible for the selection of content and creation of daily business news covering the financial markets, including Alternative Assets, Direct Investment and Financial Advisory services. Before joining Connect Money, Joe was a financial journalist for the Wall Street Journal, regularly publishing feature stories and trend pieces on the foreign exchange, global fixed income and equity markets. Joe parlayed his experience as a financial journalist into roles as a Senior Research Analyst and Portfolio Manager, writing daily and weekly market analysis and managing a FX and US equity portfolio. Joe was also a contributing writer for industry magazines and publications, including SFO Magazine and the CMT Association. Joe earned a B.S.B.A. in Finance from The American University. He holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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