Private equity firm Ares Management Corp and investment management firm Pretium on Monday agreed to buy U.S. rental homes owner Front Yard Residential Corp for about $767 million.

Front Yard stockholders will get $13.50 per share in cash, a premium of about 35.5% to its closing price on Friday, the company said.

The deal, expected to close in the first quarter of 2021, is valued at about $2.4 billion including debt, Front Yard said.

Front Yard had a rental portfolio of 14,512 homes, as of June 30. The equity value of the deal is based on 56.8 million diluted shares outstanding as of June 30.

Source: Reuters

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