The approval from MRCC shareholders was significant, with over 88% voting in favor of the merger and asset sale. Similarly, HRZN shareholders showed strong support, with more than 83% approving the issuance of HRZN's common stock in connection with the merger. The transaction is expected to unlock substantial value for shareholders of both companies, enhancing their growth capital and positioning the combined entity for future success in the venture lending market.
The merger is anticipated to generate meaningful synergies and cost efficiencies, ultimately leading to stronger, more sustainable risk-adjusted returns for shareholders. Theodore L. Koenig, Chairman and CEO of Monroe Capital, expressed his satisfaction with the shareholder support, stating that the transaction is in the best interest of both MRCC and HRZN shareholders. He emphasized the potential for the combined entity to accelerate HRZN's growth and create enduring value for all stakeholders.
Following the asset sale, the combined company will continue to operate under the HRZN name and will be managed by Horizon Technology Finance Management LLC. The closing of the asset sale and subsequent merger are subject to customary closing conditions, with an expected closing date to be announced within the next 30 days. This strategic move is seen as a pivotal moment for both companies as they aim to strengthen their positions in the market and enhance their capabilities to support innovative, high-growth companies.
