Invitation Homes (NYSE:$INVH), a subsidiary of Blackstone (NYSE:$BX), announced acquisition plans for Starwood Waypoint Homes (NYSE:$SFR) on Thursday. This will be an all-stock transaction that will create a single-family rental company worth around $11 billion.
According to Invitation Homes, the deal will be completed based off a fixed exchange ratio that will exchange each Starwood Waypoint Homes share for 1.614 Invitation Home shares.
The deal will result with shareholders of Invitation Homes owning 59% of the total company stock, while shareholders of Starwood Waypoint will own the remaining 41%. Already the announcement of the merger has sent shares of both companies soaring, as it effectively creates the the biggest single-family rental firm in the United States. Both companies’ shares hit record highs today.
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