Why Sculptor Capital Shares Are Rocketing Today
Portfolio Pulse from Lekha Gupta
Rithm Capital Corp (RITM) has agreed to acquire Sculptor Capital Management Inc (SCU) for approximately $639 million. The deal, expected to close in Q4 2023, will see SCU shareholders receive $11.15 per share, a premium of 18% over the closing price on July 21, 2023. RITM expects the acquisition to be neutral on its 2024 earnings and accretive in 2025. Post-acquisition, SCU will operate as a subsidiary of RITM.

July 24, 2023 | 11:56 am
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POSITIVE IMPACT
RITM's acquisition of SCU is expected to be neutral on its 2024 earnings and accretive in 2025. The deal is expected to close in Q4 2023.
The acquisition is expected to be neutral on RITM's 2024 earnings and accretive in 2025, indicating a positive impact on the company's financial performance in the medium term. The deal is also expected to enhance RITM's asset management business.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
SCU's shares are trading higher by around 16% after the announcement of its acquisition by RITM. SCU shareholders will receive $11.15 per share, a premium of 18% over the closing price on July 21, 2023.
The acquisition announcement has led to a surge in SCU's share price, indicating a positive investor sentiment. The premium price offered to SCU shareholders also suggests a positive short-term impact on the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100