On Wednesday, VICI Properties announced it was acquiring MGM Growth Properties (MGP:NYSE) for $17.2 billion, a 16 percent premium on MGP’s Tuesday close.

Shareholders of MGM Growth Properties will receive $43 in newly issued Vici stock for each Class A share.

MGM Growth Properties is a REIT that spun-off from MGM Resorts (it’s largest tenant). It’s portfolio includes Mandalay Bay, the Luxor and the MGM Grand, all on the Las Vegas Strip.

Vici Properties has a similar focus on the casino industry with Caesars Entertainment as its largest client. Vici recently announced a deal to purchase the Venetian, Palazzo and Sands Expo and Convention Center.

The deal brings shareholders of both companies a well-positioned and more diversified real estate portfolio.

CNBC: Casino owner Vici Properties buys MGM Growth Properties for $17.2 billion

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