Realty Income Corp. has plans to acquire VEREIT, creating a combined company with an enterprise value of approximately $50 billion.
Immediately following the closing, the companies expect to effectuate a taxable spin-off of substantially all of the office properties of both companies into a new, self-managed, publicly traded REIT (SpinCo). Following the merger and the spin-off, Realty Income will continue as the surviving public entity. Realty Income and former VEREIT shareholders are expected to own approximately 70 percent and 30 percent, respectively, of both Realty Income and SpinCo.
