US-based Waterfall Asset Management has agreed to acquire Alternative Credit Investments (ACI) in an all cash transaction valued at £639.2m.

Under the terms of the deal, each ACI shareholder will receive £8.70 in cash for each ACI share as well as an interim dividend of up to £12 per share for the third quarter of the year.

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Commenting on the deal, ACI chairperson Simon King said: “The Board welcomes and unanimously recommends the Offer from Waterfall, which we believe is the best outcome for shareholders, providing liquidity and certainty.

“The offer already has the support of holders of 40.8% of the Company’s shares and we urge undecided shareholders to consider the advantages of this firm cash offer against the alternatives in highly uncertain markets.”

Waterfall, which specialises in acquiring, managing, servicing, and financing commercial loans, has been named as ACI’s delegated portfolio manager since October this year.

The company will acquire ACI through its newly incorporated unit Waterfall EIT UK.

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Waterfall partner Patrick Lo said: “We are very pleased to announce this Acquisition with the unanimous recommendation of the Board of ACI.

“As an experienced asset manager in the structured credit market, we believe that the Acquisition represents an attractive opportunity to secure a portfolio of assets that fits with our existing investment strategy, while seeking to provide ACI Shareholders with certain and timely liquidity at an attractive price.”

The deal, subject to the satisfaction of the conditions, is expected to close during the first quarter of the next year.