Rithm Capital to acquire Paramount Group for ~$1.6B

[M&A abbreviation - mergers and acquisitions, on wooden cubes on a light background.]
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Alternative asset manager Rithm Capital (NYSE:RITM [https://seekingalpha.com/symbol/RITM]) announced [https://seekingalpha.com/pr/20235244-rithm-capital-agrees-to-acquire-paramount-for-1_6-billion] on Wednesday a definitive agreement to acquire the REIT Paramount Group (NYSE:PGRE [https://seekingalpha.com/symbol/PGRE]) for ~$1.6B.

RITM shares were +0.66% pre-market to $12.15, while PGRE was down 11.50% to $6.54.

Yesterday, Paramount Group was gaining after a media report [https://seekingalpha.com/news/4495405-paramount-group-gains-on-report-rithm-capital-nearing-takeover] that Rithm Capital is near an agreement to buy the Manhattan and San Francisco office landlord.

Rithm is set to acquire all of the outstanding shares of Paramount for $6.60 per fully diluted share.

The transaction is set to be funded with a combination of cash and liquidity from Rithm’s balance sheet and potential opportunities from co-investors.

Paramount's portfolio includes 13 owned and 4 managed office assets, totaling over 13.1M sq. ft., 85.4% of which was leased as of June 30, 2025.

Boards of both companies have approved the transaction.

The transaction is expected to close in late Q4 2025.

MORE ON RITHM CAPITAL, PARAMOUNT

* Rithm Capital's Updated Sector Comparative Analysis - Part 1 (Includes Recommendation For 17 Peers As Of 9/5/2025) [https://seekingalpha.com/article/4821547-rithm-capital-updated-sector-comparative-analysis-part-1-includes-recommendation-for-17-peers-as-of-952025]
* Rithm Capital Preferred C Gets My Buy Rating Now [https://seekingalpha.com/article/4817100-rithm-capital-preferred-c-gets-my-buy-rating-now]
* Assessing Rithm Capital's Performance For Q2 2025 [https://seekingalpha.com/article/4813203-assessing-rithm-capital-performance-for-q2-2025]
* Rithm Capital to acquire Crestline Management [https://seekingalpha.com/news/4492190-rithm-capital-to-acquire-crestline-management]