iStar Financial, Inc. (NYSE: SFI) announced its agreement to acquire Falcon Financial Investment Trust (Nasdaq: FLCN), an independent finance company that provides long-term capital to automotive dealers throughout the U.S.
According to the agreement, iStar will purchase all of Falcon's outstanding shares at a price of $7.50 per share, totaling $120 million. The transaction is expected to close in the first half of 2005. When Falcon held its initial public offering in December 2003 the shares were offered at $9 per share.
"This is a good move because it effectively represents a line of business that iStar has been pursuing over the last year or two," says Ross Smotrich, managing director at Bear, Stearns & Co. "Falcon brings an origination capability that iStar will probably want to grow."
In other iStar-related news, Institutional Investor named iStar's Jay Sugarman the top REIT CEO in 2004. Institutional Investor ranked America's best CEOs, identifying top CEOs in 62 industries, as rated by investors and brokerage firm analysts. The top-rated REIT CEO for 2003 was Edward Linde of Boston Properties, Inc. (NYSE: BXP).
